Hostplus has committed to transition its investment portfolio to net zero emissions by 2050, in line with Australia’s commitment to the Paris Agreement.
David Elia, chief executive, said the commitment acknowledged the growing community expectations around mitigating the risks of climate change and demonstrated the fund’s dedication to continuing to optimise long-term net investment returns for members.
“Climate change represents a significant financial risk to global markets and economies over the longer term. We have a responsibility to protect our members’ retirement savings and deliver them the best financial outcomes, so it is important that we take further action now to ensure the investment portfolio remains well-positioned as the world adapts to a lower carbon future.”
Elia said a net zero emissions commitment would present further investment opportunities in new technologies with strong growth potential.
“As a significant investor in new technologies via our venture capital and infrastructure portfolios, we’re already contributing to the development of the technologies that will enable and empower an orderly transition and which will also deliver additional value for our members.
“We have undertaken considerable analysis to ascertain the key contributors to portfolio emissions and are developing a roadmap for how to prioritise our emission reduction activities.”
As one of Australia’s largest industry superannuation funds, Elia said Hostplus had an important role in the global transition to net zero emissions, being a major shareholder in a number of local and international assets.
“Hostplus is in a position to be able to engage with the companies we are invested in, and we are keen to set strong expectations around adoption of lower-emission technologies, effective governance frameworks and more transparent corporate reporting as we strive to deliver on our commitment to reach net zero emissions by 2050.”
“I am proud to announce this commitment and look forward to sharing with members further information on our plan for achieving net zero emissions, whilst continuing to act in our members’ best financial interests.”
Hostplus’ current commitments to support an orderly transition to net zero by 2050, included:
• Investing over $1.2 billion in clean technology and climate solutions such as Commonwealth Fusion Systems, Terra-Gen, Finerge and the Powering Australia Renewables Fund (PowAR) [for further details see: Climate Change: Investing in Climate Solutions];
• A joint venture between the Clean Energy Finance Corporation (CFEC) and Octopus Australia to develop renewable energy assets. The Gippsland Renewable Energy Park (GREP) will deliver clean energy to the National Electricity Market, replacing the fossil fuel supply that will be lost when the Yallourn coal fired power station closes.
• Measuring and reporting the emissions intensity of its equities portfolio annually; and,
• Offering a socially responsible investment option that avoids investment in companies exposed to the fossil fuel industry.
