POWERED BY MOMENTUM MEDIA
HESTA removes AGL from watch list
HESTA has removed AGL from its watchlist in light of its progress towards alignment with the goals of the Paris Agreement and appointment of Damien Nicks as chief executive.
The $70 billion fund was vocal in its opposition to a planned demerger to create AGL Australia and Accel Energy last year as it felt it did not adequately support economy-wide decarbonisation to meet Paris-aligned targets nor manage the risk of stranded assets.
The demerger proposal was later withdrawn in May 2022, and chief executive Graeme Hunt resigned. He was replaced by Damien Nicks in September, a move welcomed by HESTA.
Nicks had previously stated that the energy transition would be the biggest challenge for the energy company going forward.
In a statement, Kim Farrant, HESTA’s general manager for responsible investment, said: “We currently believe the approach AGL and its management team have outlined to shareholders more appropriately balances risk, returns and decarbonisation. Reflecting this progress, HESTA has removed AGL from its watchlist at this time.”
It said it would continue to engage with the energy firm as it believed there was additional scope for it to develop its decarbonisation ambitions, including by bringing forward coal-fired power generation closure dates. It could also grow its investment in renewable and energy storage.
“It’s important key emitters like AGL support a timely, equitable and orderly transition. The commitments made in AGL’s CTAP around supporting their workforce and impacted communities are encouraging but more detail is needed,” Farrant said.
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
Governor Michele Bullock took a more hawkish stance on Tuesday, raising concerns over Donald Trump’s escalating tariffs, which sent economists in different directions with their predictions.
Equity Trustees has announced the appointment of Jocelyn Furlan to the Superannuation Limited (ETSL) and HTFS Nominees Pty Ltd (HTFS) boards, which have oversight of one of the companies’ fastest growing trustee services.
Following growing criticism of the superannuation industry’s influence on capital markets and its increasing exposure to private assets, as well as regulators’ concerns about potential risks to financial stability, ASFA has released new research pushing back on these narratives.
A US-based infrastructure specialist has welcomed the $93 billion fund as a cornerstone investor.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
Global X GlobalX FANG+ ETF
33.51 3 y p.a(%)
2
Spire Oaktree Opportunities XI Second Close
32.68 3 y p.a(%)
3
DomaCom Lot 21 Chellaston Road Munno Para West SA 5115 Australia
31.62 3 y p.a(%)
4
Spire Oaktree Opportunities XI First Close USD
31.36 3 y p.a(%)
5
Fidante Credit Suisse Global Private Equity
29.60 3 y p.a(%)
