Why climate matters
Climate events could pose a significant environmental and financial risk to our investments. That’s why we actively manage climate risks and opportunities across our investment options. We do this by engaging with the boards and management of our largest 50 Australian investments on their climate commitments and reporting. We also invest in companies that are supporting the transition to net-zero carbon emissions and those taking steps to thrive in a low carbon world.1
Our climate commitment
We endorse the Paris Agreement, an international treaty that aims to limit global warming to less than 2°C above pre-industrial levels. As part of this support, we’re committed to the goal of achieving net-zero carbon emissions in our investment portfolio by 2050.
Read our full Climate report or download the summary (PDF, 1.29MB) to learn more about how we drive change.
Key facts#
48
of our largest 50 Australian investments have Paris-aligned operational targets.
100%
of our wholly owned direct property portfolio is carbon neutral.2
$17b
invested across three sustainable and environmental branded options.3
#As at 30 June 2024
What does net zero mean?
Net zero is achieved when the amount of greenhouse gas being generated by an activity is balanced by the managed removal of the same amount of gas over a specific period.
In other words, whatever greenhouse gases are released into the atmosphere are also effectively removed.
How we’re addressing climate change
1. We factor ESG risks and opportunities into our investment decisions
Some examples are:
- excluding companies with reported revenues greater than 10% deriving from the exploration and/or production of thermal coal.4
- shadow carbon price analysis undertaken for our largest 50 Australian investments5 and largest 50 international listed equities.
- setting a carbon neutral emissions target for wholly owned direct property and a net-zero emissions target for direct infrastructure.
2. We engage with our largest 50 Australian investments on their net-zero goals
As an active investor, we engage with our major investments, and we vote our shares at company meetings. Part of our engagement may include providing feedback on a company’s decarbonisation pathway and/or encouraging credible climate action plans.
3. We give members the choice of three sustainable and environmental branded investment options 3
- In addition to our standard investment options, we offer two sustainable branded investment options that limit exposure to certain industries including companies that derive more than 10% of reported revenue from the exploration and/or production of fossil fuels. See the How we invest your money document for more information.
- Our Global Environmental Opportunities option invests in companies that seek to address environmental issues and opportunities. See the How we invest your money document for more information.
Articles
Many of our members are keen to know about the kinds of activities that we undertake when it comes to environmental, social and governance (ESG) considerations. These are important and form part of our investment approach.
We're pleased to let our members know about our new timber investment in Tasmania's largest hardwood plantation estate, Forico.
In 2023, we continued to progress towards our goal of having a net zero emissions investment portfolio by 2050 in line with the Paris Agreement.
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Things you need to know
1 Please consider our How we invest your money document for more information on how we invest.
2 Wholly owned property portfolio is Climate Active Carbon Neutral Certified for the 2022-23 financial year, with 2023-24 currently underway. This excludes assets that are held for development or are not wholly owned by UniSuper
3 Sustainable and environmental investing means different things to different people. Different products have different investment criteria. Read our sustainable and environmental branded options page and How we invest your money document to find out what sustainable and environmental investing means to us and what our investment options invest in.
4 We may retain an interest in companies that have more than 10% of their reported revenues associated with thermal coal exploration and/or production but are well progressed in the sale or wind-down of those mines as we consider them to comply with the restriction. As at 30 June 2024, we did not hold any interests in companies that had more than 10% of their reported revenues from the exploration and/or production of thermal coal.
5 These include investments in ASX-listed companies and unlisted assets with Australian-based operations.