State Super has set a 2050 net-zero emissions goal for its Pooled Fund investment portfolio.
State Super is the trustee of the State Authorities Superannuation Scheme, State Superannuation Scheme and Police Superannuation Scheme.
Chair of State Super, Nicholas Johnson said the fund had also set a milestone target for 2030 of a 45 per cent reduction in the weighted-average intensity of carbon dioxide equivalent (CO2e) emissions.
“The targets were determined with regard to the goals of the Paris Agreement and were approved by the Board after consideration of environmental, legal and investment factors,” Mr Johnson said.
“State Super intends to adjust the portfolio over time to ensure its emissions decline progressively in line with the agreed targets,” he said.
“In doing so, State Super is prioritising its pathway for emissions reduction to 2030.”
Mr Johnson said as the majority of baseline emissions were represented in State Super’s listed equities portfolio, efforts would be focused on driving further emissions reductions in that portfolio while also progressing decarbonisation of its alternatives and real assets.
He said it was widely recognised that climate change represented unprecedented financial risks, as well as being an environmental and ethical issue.
“It has become abundantly clear, therefore, that in acting in the best financial interests of members, superannuation trustees must respond to the investment risks associated with climate change and seek to mitigate them.
“It is equally important for them to realise investment opportunities that will come from the transition to a low-carbon economy, including from new technologies, initiatives and policies over short, medium and long-term investment horizons,” Mr Johnson said.
