Australia’s no. 2 pension fund to abandon thermal coal financing

It plans to invest A$1b in renewables and low carbon energy.

Aware Super, Australia’s second-biggest pension fund, will exit thermal coal financing and move to support renewables instead, according to the company’s climate change portfolio transition plan.

Supporting its exit from coal, the company also reduced its emissions by 45% in its portfolio and also used its ownership rights to get voluntary commitment from some of the world’s highest emitters to create low-carbon strategies. 

The company will also be investing A$1b ($740m) in renewables and low-carbon technology.

“Sometimes our members ask us how we’re living up to our promise of being a top-performing fund when we make investment decisions which also have climate change at their heart. Some may even think that top investment performance isn’t compatible with investing in ways that address climate change. At Aware Super we believe the opposite is true. Climate change is a significant risk to our investment portfolio, so managing climate risk is one of the ways we put members first. Therefore, to deliver long-term sustainable returns to our members, we actively address climate change,” said Responsible Investment Head Liza McDonald.