Climate change is a key concern throughout the investment community. As one of Australia’s largest super funds, we recognise that we must be increasingly mindful of the footprint our investments make.

A new report from the Asset Owners Disclosure Project (AODP)^1 has revealed that over 60% of the world’s largest super funds provide very little information about the financial impact that climate change could have on their investment portfolios.

The AODP is an independent global not-for-profit organisation that rates and ranks the world’s largest institutional investors and assesses their response to climate-related risks and opportunities.

Funds reviewed in the study receive a rating from AAA to D, with an X-rating reserved for those funds showing no evidence of acting on climate change risks.

How we rate on climate change risks

At First State Super, we have been integrating climate change risk into our investment policy framework since 2016. Our approach was recognised by the AODP, who awarded us with a BBB-rating, making us the highest-ranking Australian super fund and 13th out of the 100 funds surveyed. We were also the highest-ranking fund in the Asia-Pacific region.

Find out more about our approach to climate change

As a large super fund whose guiding principal is to always put members first, we have a duty to act in the long-term interests of our members, the community, and the world in which our members live, work and retire. There is growing recognition among investors that responsible corporate behaviour can have a positive influence on the financial performance of companies, particularly over the long-term.

We are actively encouraging the transition to a low-carbon future, not just because of the risks to the environment, but because it makes good financial sense to support businesses that have a long-term, sustainable outlook. Our high ranking in the AODP study is welcome recognition that we are on the right track.

Our Climate Change Adaptation Plan clearly sets out how we are integrating climate change risk into our investment policy framework. 

Read our Climate Change Adaptation Plan
  1. ‘Pensions in a changing climate’ is the first in a series of four reports on the pensions sector produced by the Asset Owners Disclosure Project (AODP), which is part of the responsible investment organisation ShareAction. The report assesses the world’s 100 largest public pension funds with combined assets worth over $11 trillion.