Climate

The Responsible Investment Association Australasia (RIAA) has welcomed today’s announcement that industry fund HESTA has committed to reducing the absolute carbon emissions in its investment portfolio by 33% by 2030 and being ‘net zero’ by 2050. “HESTA is the one of the first large Australian superannuation funds to make carbon reduction commitments of this scale across its entire portfolio, in line with the Paris Agreement on climate change.” said Simon O’Connor, RIAA CEO. “We welcome HESTA’s exemplary leadership. HESTA has read the tea leaves on the enormous risks that inaction on climate change poses to our economy and member returns. “HESTA’s announcement reflects the increasing momentum within financial services companies in Australia for insurers, banks and super funds to commit to aligning their business with the Paris Agreement. We hope other large Australian super funds committed to responsible investment will swiftly follow suit. “Increasingly we are seeing super funds step up to play an important role in delivering on critical agreements like the Paris Agreement in a manner that is aligned with their member expectations and is consistent with the direction our regulators are heading regarding climate risk guidance.

Commerce and Consumer Affairs Minister Kris Faafoi has announced that from December 2021 ‘KiwiSaver’ accounts will no longer include companies involved in fossil fuel production. What does this mean in investment practice?

As parts of Australia begin to emerge from this devastating bushfire season, the consideration of climate risk and impacts in investment portfolios is front of mind for many responsible investors.

Executive pay and climate change are among the key issues being researched and valued within the finance industry to inform and drive more responsible investment in Australia. At the 9th Annual ESG Research Australia Awards held at the RI Australia 2018 conference in Melbourne tonight, Citi and Bank of America Merrill Lynchtook out the awards for excellence in ESG research by a broker. A new award from RIAA was also jointly presented to MSCI and the Centre for Policy Development for new ESG research by a non-broker. The ESG RA Awards, attended by Australia’s leading superannuation funds, fund managers and broking firms, recognise excellence in environmental, social and governance (ESG) research published by broking firms. The winners of this year’s ESG Research Australia Awards are: Best Piece of New ESG Research by an Individual Analyst or Team: Bigger, Badder and more Opaque: The Task ahead for Investors Undertaking 2 Degree Scenario Analysis, by Zoe Whitton and Edward McKinnon, Citi Best Piece of Ongoing ESG Research by an Individual Analyst or Team: CEO Incentives and Analyst Expectations for ASX100 Companies, by Sameer Chopra et al, Bank of America Merrill Lynch Best ESG Broking Firm: Citi The 2018 joint-winners for RIAA’s new ESG Research Award – recognising excellence in investor relevant ESG research by a non-broking firm are: Best Piece of Investor Relevant ESG Research (non-broking firm): Climate Horizons Report: Scenarios and Strategies for Managing Climate Riskby Sam Hurley and Kate Mackenzie, Centre for Policy Development (with input from ClimateWorks Australia) AND Alignment to climate regulatory scenarios: A case study of Australian companiesby Brendan Baker and Morgan Ellis, MSCI ESG Research

London June 1 2017: The Global Sustainable Investment Alliance, the collaboration of leading national sustainable investment bodies from Europe, the US, the UK, the Netherlands and Australasia, has expressed strong disappointment in the US Government’s decision to withdraw from the Paris Climate Change Agreement. The GSIA – representing $12 trillion of assets managed, banked or advised globally – has condemned the decision which comes at a critical moment when global capital is moving to play their part in financing the transition towards a low carbon economy. The GSIA urges the Administration to reconsider the decision and join with the other 195 nations who are committed to tackling climate change through the Paris Agreement.