Responsible Ownership is an approach to investing that means we’re focused on returns, but also make investments that directly benefit our members’ communities and the broader society in which we live.
An important part of this is transitioning our portfolio to support a low-carbon economy. Through our , we’re committed to investing in renewables and new technologies across our portfolio, and invest in companies with genuine renewable and clean energy targets.
These renewable investments sit in our Infrastructure and real assets asset class. This asset class has delivered a return of 13% p.a. over 5 years to 31 January 2021*.
Investing in Australian renewable energy assets
Investment: Snowtown 2 wind farm
Investment date: December 2019
Located 170 kilometres north of Adelaide, Snowtown 2 is one of Australia’s largest wind farms with 90 turbines and installed capacity of 270 megawatts. It generates enough electricity to help South Australia reach its 100% renewable energy target by 2030.
Aware Super became a co-investor in Snowtown 2 in December 2019. The asset sits in the fund’s infrastructure and real assets portfolio which has returned 13% per annum over five years to January 2021. Returns from the asset come from a stable and secure contract with Origin Energy.
As well as helping to generate strong long-term investment returns for fund members, the wind farm avoids around 150,000 tonnes of CO2-equivalent emissions each quarter, equivalent to powering about 180,000 homes.
“Investments such as Snowtown 2 is one way we are putting our members’ retirement savings to work to deliver sustainable outcomes.”
Damian Graham, Chief Investment Officer, Aware Super
How the investment is delivering returns to members: Returns will come from a secure and stable contract with Origin Energy.
Snowtown 2 taps an unlimited source of low cost, clean energy
Investment: Powering Australia Renewables
Investment date: December 2016
Powering Australia Renewables (PowAR) invests in large scale renewable energy projects across Australia.
PowAR currently funds four Australian renewable energy projects. The NSW Broken Hill Solar Plant and Nyngan Solar Plant were acquired in 2016. Queensland’s Silverton Wind Farm is now fully operational, and the Queensland-based Coopers Gap Wind Farm is almost complete.
PowAR’s existing wind and solar farms will deliver around 2,400 gigawatt hours each year. That’s enough to replace an equivalent amount of fossil fuels and power 465,000 average Australian homes each year.^2
Our investment in PowAR assists in Australia’s efforts to combat climate change through decarbonising our energy generation mix. PowAR contributes to Australia’s Paris Climate Agreement greenhouse gas emissions reduction targets of reducing emissions by 26-28 per cent on 2005 levels by 2030.
How the investment is delivering returns to members: AGL Energy has agreed to buy all of PowAR’s electricity and ‘green certificates’ from current and under-construction assets for an initial five-year period with an option to extend by five years.
PoWAR - Cooper's Gap wind farm, QLD
Latin American renewable energy assets
Investment name: Darby Servtec Energy Fund
Investment date: June 2017
Darby is a global emerging markets private equity fund manager. It launched the Darby Servtec Energy Fund (DSEF) in 2017 with Servtec Energia, a Brazilian developer and operator of power assets.
DSEF invests in renewable solar, wind and hydro assets in Latin America. The fund aims to develop and own over 380 megawatts of renewable generation projects and generate a potential reduction in greenhouse gas emissions of over 400,000 tonnes of CO2 each year.
DSEF’s existing wind, small hydro and solar farms have the potential to replace their equivalent in fossil fuels such as coal and gas. We expect that DSEF will deliver around 970 gigawatt hours of energy – enough to power half a million average Brazilian homes each year.^3
DSEF also promotes economic development in less developed areas of Brazil, including training and education programs for women to support employment.
How the investment is delivering returns to members: DSEF has secured several long-term energy agreements. It will either inject the energy into the electrical grid or sell to individual medium and large businesses.
Our investment in Darby Servtec helps us combat climate change by de-carbonising Brazil’s energy mix and energy generation.
*Note that past performance is not an indicator of future performance.