Skip to main content

Why climate change matters

As a responsible owner we invest for strong retirement outcomes for our members. We view climate change as a significant long-term risk to our portfolio and, therefore, our members’ retirement outcomes. 

How we manage climate risk

We published our first climate strategy in 2016 and have continued to improve our approach over the past 10 years.

Our 2026 Climate Roadmap builds on what we've already put in place - including our goal to reduce the emissions intensity of our investment portfolio by 2030, how we factor climate into our investment decisions, and our program for actively engaging with the portfolio companies and policy makers.

Our overarching strategic commitments are to:

  • Support the transition to a net zero global economy by 2050, consistent with our fiduciary duties and investment beliefs.
  • Strengthen our assessment of transition alignment and portfolio resilience.
  • Support real-economy decarbonisation through stewardship, manager engagement and disciplined capital allocation.

Two underlying goals support these commitments:

Financed emissions intensity goal

We will strive to achieve a 45% reduction in Scope 1 and 2 financed emissions intensity of the investment portfolio by 20301 2 3.

Transition alignment goal

By 2030, we will seek to increase the proportion of in-scope companies, assets and managers demonstrating credible transition progress.

We are continuing to work towards lowering portfolio emissions whilst broadening our focus towards:

  • How well-prepared companies are for the transition.
  • Actively engaging on climate issues with our portfolio companies.
  • Managing physical climate risks and building portfolio resilience.
  • Incorporating climate considerations into investment decisions.

For details about our approach and how it will be implemented: Read our 2026 Climate Roadmap

The journey so far

Since 2015 we have regularly reviewed and broadened our approach to climate change in line with advances in understanding and climate science. And we have also progressed against our goals and targets along the way. 

Our approach to climate change

We recognise that our strategy needs to evolve overtime

We regularly review and broaden our approach to climate change in line with advances in understanding and climate science.

Read more about how we respond to dynamic and rapid changes occurring in climate change science and investing.

Where to next?

Responsible investment reports

Each year, we update members on our responsible ownership approach and areas of focus. We also give an update on our climate plan’s progress. 

Investing in climate solutions

We look to invest in climate solutions which support the transition to a low carbon economy.
These articles will help you learn more about how we’re investing in climate solutions.

1 Financed emissions intensity measures the greenhouse gas emissions associated with investments held in the portfolio, attributed to an investor based on its share of financing or ownership per $1 million invested. Reduction in listed equities and indirect property and infrastructure portfolios is measured against a 2020 baseline. Reductions for direct property and infrastructure portfolios is measured against a 2022 baseline. 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 goal until a suitable methodology has been determined.

2A 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.

3 This target is subject to sufficient progress in real-economy decarbonisation and our ability to maintain broader portfolio financial objectives.