POWERED BY MOMENTUM MEDIA
ASFA targets commitments for net-zero by 2050
The Association of Superannuation Funds of Australia (ASFA) has released a discussion paper seeking feedback on direction for its views on climate change.
The discussion paper explored the reasons superannuation funds should consider climate change risk when making decisions and the importance of employing mitigation strategies to reduce the risks.
The mitigations strategies that had been explored include a commitment by super funds to:
- Reach net zero greenhouse gas emissions in their investment portfolio by 2050;
- Engage with businesses on climate change risk to support them on their journey to mitigate climate change risk; and
- Adopt the United Nations Principles of Responsible Investment approach.
Some of the key questions the association was interested in receiving feedback on:
- Were Australian regulators clear enough in their expectations of organisations when dealing with climate change risk?
- Do you support an objective of the super industry being accountable for net zero emissions by 2050 (in terms of their investments)?
- Would that be ambitious enough – should the aim be for 2040?
- How does the best financial interests duty interact with the net-zero emissions commitment?
- Would you support the disclosure of progress towards net-zero emissions by 2050 through a superannuation fund’s portfolio holdings disclosure obligations? If so, is a materiality threshold required?
- What role will products such as green bonds play in meeting the net-zero emissions commitment?
- What other products need to be created to achieve the net-zero emissions commitment?
- At what point should super funds begin to engage businesses they were invested in for best results?
Dr Martin Fahy, ASFA chief executive, said: "In the absence of a commitment to net-zero greenhouse emissions by 2050, the superannuation industry stands to lose billions of dollars in investment returns on behalf of their members, which ultimately translates to less retirement savings”.
Feedback for consultation would close on 15 October, 2021.
Recommended for you
Super funds had a “tremendous month” in November, according to new data.
Australia faces a decade of deficits, with the sum of deficits over the next four years expected to overshoot forecasts by $21.8 billion.
APRA has raised an alarm about gaps in how superannuation trustees are managing the risks associated with unlisted assets, after releasing the findings of its latest review.
Compared to how funds were allocated to March this year, industry super funds have slightly decreased their allocation to infrastructure in the six months to September – dropping from 11 per cent to 10.6 per cent, according to the latest APRA data.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
Spire Oaktree Opportunities XI Second Close
61.07 3 y p.a(%)
2
Spire Oaktree Opportunities XI First Close USD
59.21 3 y p.a(%)
3
DomaCom Lot 21 Chellaston Road Munno Para West SA 5115 Australia
31.73 3 y p.a(%)
4
Fidante Credit Suisse Global Private Equity
30.15 3 y p.a(%)
5
DomaCom 4/27 Crombie Avenue Bundall QLD 4217 Australia
26.71 3 y p.a(%)
