A new plan for South Australia’s Public Servants’ superannuation is to see the fund insulated against the financial risks of climate change.
According to Super SA, the Climate Risk Response Plan: Phase One from its specialist investment manager, Funds SA, will outline the initial actions it plans to take to manage long-term financial risks, the opportunities of climate change and the transition of its investment portfolio towards Net Zero Emissions by 2050.
In its response, Funds SA said that to achieve its commitment to Net Zero by 2050, it would take action across its Five-Pillar Climate Risk Response Plan Framework to support a 45 per cent reduction in global emissions by 2030, consistent with the goals of the Paris Agreement.
It said the Response Plan followed its 2021 Climate Change Position Statement, which outlined its approach to addressing climate change risks in line with the objectives of the Superannuation Funds Management Corporation of South Australia Act 1995.
“Funds SA recognises that climate change presents a systemic risk impacting potential investment returns over the coming decades,” it said.
“Across the globe, economies are decarbonising and this brings significant risk and opportunity for investors.”
Funds SA said that in developing the Response Plan, it reviewed the latest scientific and financial analysis, as well as emerging best practice to build a Framework informed by a range of Principles and Beliefs.
It said the Framework Principles included a primary responsibility to achieve the highest risk adjusted investment returns; the best scientific evidence as a basis for considering the potential investment impacts and opportunities of climate change; to achieve Net Zero emissions by 2050, Fund SA’s investee companies and investment managers needed to be aligned with the global pathway, including the critical role of the 2030 interim goals.
Funds SA’s six-page Response Plan can be accessed at this PS News link and the one-page Position Statement at this link.
