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Climate Transition Plan

2023 climate strategy summary

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Our goal when investing is to achieve the best long-term outcomes for our members, to help them reach their retirement goals.   

We will support an orderly and equitable transition to net zero greenhouse gas emissions (GHG) through our investment activities, stewardship and advocacy.

Our overarching targets to support that commitment are to:

  • Achieve net zero GHG emissions in our portfolio by 2050
  • Support an economy-wide reduction in GHG emissions of 45% by 2030
  • Achieve a 45% reduction in scope 1 and 2 emission intensity of our investment portfolio by 2030*

* Reduction will be measured against a 2020 baseline, where possible. Reductions for investment sectors where a later baseline has been completed may be pro-rated accordingly. It is noted that not all asset classes have a financed emissions calculation methodology, and it is likely these will continue to be excluded from this calculation and target until a suitable methodology has been determined. A guiding range of 40-50% has been acknowledged by the Board, in the event that a fund or investment activity may change the portfolio significantly, such as a merger or large acquisition.

Managing climate change risk

We believe that responsible ownership, including the integration of environmental, social and governance (ESG) factors, adds value to our investment process and improves our members’ retirement outcomes. It includes managing the risks and opportunities presented by climate change and the transition to a lower-carbon economy.

Climate change risk is a material financial risk for our portfolio. Managing this risk is critically important to delivering strong long-term returns to our members.

We have a long history of considering the impact of climate change risks for our investments. Since 2015, we have regularly reviewed and renewed our plans to address this.

Our 2023 Climate Transition Plan (CTP) is built on five pillars, which inform and contribute to Aware Super’s investment activities relating to climate-related risks for the Fund.

1. Decarbonisation

Our decarbonastion pillar focuses on the reduction of emissions within our investment portfolio, as well as the contribution Aware Super makes to reducing emissions within the economy.

Aware Super continues to map out a decarbonisation pathway for the investment portfolio, supported by underlying sector targets and plans. The pathway will be reviewed regularly in response to ongoing changes to the economy and climate to ensure we reach our targets.

2. Portfolio transition and resilience

This pillar assesses and manages physical climate risk and climate transition risk (including the impact of carbon pricing) in our portfolio.

3. Investing in climate solutions

We will continue to invest in low carbon solutions that are commercially viable. We will also invest in and support our existing investments that need financial support to transition to lower emissions.

4. Being a leader in company climate engagement

A dedicated, active climate engagement strategy will support our targets, including:

  • Engagement with listed companies
  • Listed company climate-related voting
  • Engagement with fund managers and directly owned assets

A focus for our climate engagement will include actively supporting a fair and equitable transition for workers and their communities.

5. Having an influential voice in climate policy & advocacy

We will actively participate in climate policy and advocacy, contributing to Australia’s climate policy landscape.

Read the full plan

Important information and disclaimer: The information contained in this Climate Transition Plan summary is given in good faith and has been derived from sources believed to be reliable and accurate. No warranty as to the accuracy or completeness of this information is given and no responsibility is accepted by Aware Super Pty Ltd or its employees for any loss or damage arising from reliance on the information provided. Prepared and issued by Aware Super Pty Ltd ABN 11 118 202 672, AFSL 293340, the trustee of Aware Super ABN 53 226 460 365. When members receive advice, they receive it under our f inancial planning business, Aware Financial Services Australia Limited ABN 86 003 742 756 AFSL No. 238430. Aware Financial Services Australia Limited (ABN 86 003 742 756, AFSL 238430) is wholly owned by Aware Super. Published December 2023. AS048 12/23.