#1 fund for weathering market ups and downs3
SuperRatings' Pension of the Year 4 years in a row4
How we consider climate change when investing
QSuper is committed to using its strength as a large investor to directly influence the reduction of carbon emissions that contribute to climate change.
This commitment includes aligning the QSuper portfolios to a decarbonisation path consistent with achieving net-zero carbon emissions by 2050 in line with the Paris Agreement. It will support this approach both through enhanced disclosure of its own activities and use of its influence as an asset owner.
This is consistent with our fiduciary duty to act in the best financial interests of members and with our risk-balanced strategy of maximum diversification.
Our views are informed by science. Warming of the climate system is unequivocal, and human influence on the climate system is clear. Observational climate data demonstrate climate change is happening. Continued emissions of greenhouse gases will cause further warming and long-lasting changes in all components of the climate system, creating risks for the economies and markets QSuper invests in. Achieving the temperature limits set out in the Paris Agreement is considered the least-cost pathway for the real economy and therefore supports the best investment outcomes for our members.
QSuper is integrating transition and physical risks into its consideration of all investment risks across asset classes.
We will use our voice as a large asset owner to advocate for effective policy and business responses on climate that seek to achieve a smooth transition to a low-carbon economy and increase resilience to transition and physical risks.
We will also disclose our progress in line with global best practice, including through a report that adheres to the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD) for the year ending 30 June 2022.
Both the physical and transition risks of climate change are investment risks. QSuper is pursuing a strategy across its portfolio to mitigate these risks and take advantage of opportunities that arise in moving to a lower-carbon economy.
In September 2021, we divested (sold) companies in our equities portfolio that had weak or no commitments to achieve net zero emissions by 2050. We continue to work on our total portfolio, including unlisted assets, and on setting shorter-term targets aligned with the ambitions set out in the Paris Agreement.
We collaborate with other large global investors on managing climate change risk through Climate Action 100+, the Investor Group on Climate Change, and the Australian Council of Superannuation Investors.
Because climate change poses risks to the financial system, both the Australian Prudential Regulatory Authority (APRA) (which regulates super funds) and the Reserve Bank of Australia (RBA) acknowledged in November 2021 that they are allowed and even required to address climate change.
We'll keep our members updated as we continue to develop our climate change strategy.
We believe sustainable investments play a role in providing strong long-term investment returns.