Climate change top of mind for Aussie funds

Climate change top of mind for Aussie funds

New research from the Asset Owners Disclosure Project has found Australian asset owners are second only to Europe when it comes to climate change risk.


The Asset Owners Disclosure Project’s (AODP) Global Climate 500 Asset Owners Index found the 29 asset owners in Australia and New Zealand had an average B rating, with Local Government Super (LGS) topping the index as one of six organisations in the “leaders group”.

LGS is one of three funds that, alongside First State Super and AustralianSuper, received the AODP’s highest rating for climate change risk in last year’s Global Climate 500 Index.

Fellow Australian asset owner Macquarie Bank, however, was rated the worst in the world outside of America and Japan when it came to climate change risk management, earning a D rating from the AODP.

“This is a cause for concern, given that [Macquarie Bank] is set to acquire the UK’s Green Investment Bank,” the AODP said.

Globally, the index found Europe to be the leading region for climate change risk, with the continent accounting for 20 of the 34 top-rated (AAA–A) organisations and an average CC rating for its combined 190 asset owners.

“No asset owners are ignoring climate risk in the Netherlands, Scandinavia or Ireland while laggard institutions in the UK and France control just $16 billion and $6 billion of investments,” the AODP said.

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