POWERED BY MOMENTUM MEDIA
Cbus targets net zero emissions by 2050
Construction industry super fund Cbus Super is targeting a 45% reduction in its absolute portfolio emissions by 2030 and net zero emissions by 2050.
As part of its two-year Climate Change Roadmap, Cbus Super, which had an average member age of 39, said it was the firm’s responsibility “to see our members retire securely in a safe climate”.
Chief investment officer Kristian Fok said: “It’s our responsibility to safeguard their investments as the financial impacts and physical effects of climate change intensify”.
In order to achieve its target, the fund would reduce its portfolio emissions by investing further in renewable energy and climate solutions and a focus on green recovery as well as setting individual targets for different asset classes.
It would also work to understand companies that were at risk of not transitioning due to the products they produce or lack of management capability, known as ‘stranded assets’. These constraints would be introduced into the firm’s internal quantitative portfolios.
“Cbus is able to help reduce emissions in the real economy and avoid assets that will increasingly become stranded as the economy transitions. We have been doing a significant amount of work to determine those assets that aren’t able to transition to a net zero environment, and this work will ramp up under our new road map,” added Fok.
In light of its updated target, the firm was the first Australian financial to sign up to the United Nations Convened Net Zero Asset Owners Alliance, whose members had over $4 trillion in assets under management.
AUTHOR
Laura Dew
Laura Dew is editor at Super Review. Prior to joining SR, she spent five years working at Investment Week in the UK covering asset and wealth management.
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(%)
