Super fund HESTA has become the first Australian signatory to the Paris Aligned Asset Owners group that now boasts US$2.35 trillion in funds under management.
Australian industry superannuation fund HESTA is among 12 new asset owners to join the Paris Aligned Investment Initiative Net Zero Asset Owner Commitment, bringing the total number of signatories to 40 with US$2.36 trillion in assets under management.
The Paris Aligned Asset Owners groups is an investor-led global forum that supports investors in aligning their portfolios and activities with the goals of the Paris Agreement.
By joining the group, members such as HESTA are committing to decarbonise their portfolios by 2050 or sooner, increase their investments in climate solutions, set interim targets and undertake advocacy and engagement in line with net-zero goals.
“We’re proud to join like-minded global investors committed to achieving net zero by 2050,” said HESTA chief executive Debby Blakey.
“Climate change represents one of the most significant challenges to the wellbeing of current and future generations. That’s why at HESTA we’re focussed on mitigating the risks of climate change across our portfolio and identifying opportunities as we transition to a low carbon economy.”
She explained the HESTA already has in place a comprehensive Climate Change Transition Plan (CCTP), aimed to help protect and enhance the long-term performance of its members’ investments, while driving meaningful change and contributing to a healthier planet and society.
“There is no doubt that the social, environmental and economic cost of inaction is going to be far greater than the cost of responding to climate change,” Ms Blakey said.
The Paris Aligned Investment Initiative (PAII) was established in May 2019 by the Institutional Investors Group on Climate Change (IIGCC).
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