This commitment includes aligning our portfolios to a decarbonisation path consistent with achieving net-zero carbon emissions by 2050 in line with the Paris Agreement. We'll support this approach both through enhanced disclosure of our own activities and use of our influence as an asset owner.
This is consistent with our fiduciary duty to act in the best financial interests of members.
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 we invest 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.
We are integrating transition and physical risks into our consideration of 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.
We believe sustainable investments play a role in providing strong long-term investment returns. Learn more.
Reducing our exposure to carbon emissions
Both the physical and transition risks of climate change are investment risks. We are pursuing a strategy across our portfolio to mitigate these risks and take advantage of opportunities that arise in moving to a lower-carbon economy.
Because climate change poses risks to the financial system, both the Australian Prudential Regulatory Authority (which regulates super funds) and the Reserve Bank of Australia acknowledged in November 2021 that they must address climate change.
We'll keep members updated as we continue to develop our climate change strategy.