Australian companies that actively help to reduce carbon emissions across the wider economy have received new backing from Qantas Super and the Clean Energy Finance Corporation.
Qantas Super and the CEFC have each invested $50 million in the Ellerston 2050 Fund to support carbon abatement ‘enablers’ who provide technology and services that their customers can use to reduce their emissions.
“We are seeing significant change across corporate Australia as large companies commit to increasingly ambitious emissions reduction targets,” said CEFC CEO Ian Learmonth.
“As this shift gains momentum, demand for products and services that enable companies to meet these targets will continue to increase and will play an integral role in building carbon reduction across the wider economy. The 2050 Fund is about delivering expert capital to these companies to help accelerate their growth as a part of the low emissions economy of the future.”
Managed by Ellerston Capital, the open-ended, wholesale fund will invest in a range of listed and unlisted small to mid-sized companies such as those that offer low carbon products and those with technology and services that enable energy efficiency.
“As a responsible investor focused on supporting the growth ambitions of small companies as they seek capital and public listing, we are seeing an increasing amount of companies explicitly providing solutions to help the economy transition to net zero emissions,” said Ellerston Capital executive chairman and CIO Ashok Jacob.
“A growing urgency is required to tackle the causes and consequences of climate change and this is recognised by investors such as CEFC and Qantas Super with whom we are proud to be partnering with to address this clear structural growth opportunity.”
The firm noted that companies targeted by the 2050 Fund would be assessed on their ability to contribute to meaningful carbon abatement, with sustainability placed at the core of its investment process.
The super fund invested $2 billion to be split equally between the two managers with the aim of reducing the carbon intensity of its Australian and global equity portfolios
“We value the opportunity to provide environmentally aligned capital to support the work of Australia’s carbon abatement enablers,” Qantas Super CIO, Andrew Spence said.
“This approach is consistent with our commitment to deliver great investment performance to our members, while also achieving net zero carbon emissions across our investment portfolio by 2050. We’re excited to be working with the CEFC and Ellerston Capital to help us meet this goal.”
Jon Bragg is a journalist for Momentum Media's Investor Daily, nestegg and ifa. He enjoys writing about a wide variety of financial topics and issues and exploring the many implications they have on all aspects of life.