Colonial First State (CFS) is aiming to cut all scope 1 and 2 greenhouse gas emissions across its operations by 2030.
In October 2021, CFS committed to a 30 per cent emissions deduction by 2030, with the long-term goal of reaching net zero by 2050 across the 160 super, pension and investment funds in its FirstChoice portfolio.
Since then, CFS has reassessed the emissions baseline of its FirstChoice portfolio, developed a climate roadmap, and performed climate scenario analysis to understand the implications of climate change on future returns.
“As one of Australia’s leading superannuation and investment businesses, with approximately 1,600 employees and more than 900,000 members, we recognise the important role we can play in supporting an orderly transition,” explained Kelly Power, chief executive officer of superannuation.
Further details will be published in a progress report to be issued next year.
Scope 1 emissions are directly from company-owned or controlled resources, whereas scope 2 emissions are from the indirect consumption of energy.
CFS’ in-house research revealed that half of their members intended to switch some of their investments to a sustainable option in the next two years.
This feedback, it said, informed the development of its first sustainable fund, Thrive+, which will be launched to all CFS investment, superannuation and pension customers in the coming weeks.
“Our priority is delivering the best possible returns for our customers to enable them to achieve financial freedom in retirement. That’s why we’re committed to managing the risks associated with climate change — both at an operational and investment level,” Ms Power said.
“By supporting an orderly transition and operating our business sustainably, we can remain focused on delivering for our customers today and into the future.”
CFS has engaged with investee companies on climate change, including through the engagement of a dedicated stewardship provider for communications on CFS’ behalf.
CFS has also expanded its ability to engage directly with investee companies through its membership of Climate Action 100+, which allows it to partner with other investors to influence the world’s largest greenhouse gas emitters to take necessary action.
