POWERED BY MOMENTUM MEDIA
Future Fund urged to improve climate risk management
The Centre for Policy Development (CPD) is calling for Future Fund to observe industry best practice to manage climate-related risk.
It recommended an expert review panel considered the fund’s statement of expectations and investment mandate to enable it to disclose and manage climate-related risk and investment opportunities.
Using publicly-available information, CPD found gaps were identified across the fund’s response to climate risks in target setting, corporate engagement, industry collaboration and governance when compared to global counterparts and investment industry practices.
CPD sustainable economy director, Toby Phillips, said: “The Future Fund invests on behalf of all Australians, and is required to observe investment industry best practice in how it does that.
“As citizens of a country with a lot to gain from energy transition and a lot to lose from climate inaction, Australians will naturally be concerned by these findings.
“With almost a quarter of a trillion dollars under management, the Future Fund is a major institutional investor acting on the global stage, and it’s reasonable to expect them to play by the same rules as other major investors and asset managers on climate risk.
“Global investors and capital markets are developing sophisticated responses to climate risk. By providing clear, unambiguous, expectations around climate risk, we can show leadership and put Australia’s sovereign wealth fund at the head of the pack.”
Last week, Future Fund was named as one of the world's Top 100 Asset Owners with US$185 billion in funds under management.
AUTHOR
Laura Dew
Laura Dew is editor at Super Review. Prior to joining SR, she spent five years working at Investment Week in the UK covering asset and wealth management.
Recommended for you
Challenger’s chief economist expects the US economy will see a prolonged recovery with President Donald Trump’s policies unlikely to have a lasting effect on equities and investments.
A research firm says errors are a “natural part” of running a company with humans and has reversed its previous poor rating for the exchange.
The world’s largest wealth manager remains overweight on US stocks spurred on by AI, but is taking a “granular” approach when assessing trade war damages.
Australia’s investment sector has averaged just 31 per cent alignment with mandatory climate reporting rules, new research has shown.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
DomaCom DFS Mortgage
76.97 3 y p.a(%)
2
Global X 21Shares Bitcoin ETF
76.46 3 y p.a(%)
3
UBS Solactive Global Pure Gold Miners UCITS ETF Dis USD
51.13 3 y p.a(%)
4
Global X GlobalX FANG+ ETF
45.15 3 y p.a(%)
5
Select Baker steel Gold Institutional
43.78 3 y p.a(%)
