Net Zero Roadmap
Net Zero Roadmap
We care about making a positive difference to our members' lives by helping to set them up for a better future. That’s why we’ve committed to achieving net zero carbon emissions in our investment portfolio by 2050.
You’re at the heart of our decision to transition to net zero
We believe environmental, social and governance (ESG) factors can impact investment risks and returns and affect our ability to deliver sustainable, long-term growth for our members.
If we don’t act to mitigate climate risk now, the transition and physical risks of climate change are likely to negatively impact the value of our investments. Plus, there are potential investment opportunities to be found that will help to add value for our members.
NET ZERO EXPLAINED
Net zero refers to an overall balance between the amount of greenhouse gas emissions released into the atmosphere and those taken out. We reach net zero when the amount we add is no more than the amount taken away.
WHAT NET ZERO MEANS FOR MEMBERS
You can rest assured that members’ best financial interests are our top priority.
Our net zero approach will apply across all our investment options. This means your super will be working to help create a brighter future, no matter which investment option(s) your super is invested in*. The best part? You don’t have to do anything.
In pursuit of net zero, our investment objectives also haven’t changed. We’re still aiming to deliver consistently strong long-term returns for our members.
Our Net Zero Roadmap
Our roadmap focuses on building resilience to climate-related financial risks by decarbonising our investment portfolio and leveraging our position as a long-term investor to drive real-world emissions reduction in the economy.
- Measure and monitor the carbon footprint of our entire investment portfolio^
- Work with our investment managers to ensure they support our Net Zero Roadmap
- Work with the high emitting investee companies in our Australian shares portfolio to ensure they develop net zero plans and set science-based targets
- Collaborate with key partners to share knowledge, influence change and gain insights into evolving industry best practice
- Actively invest in climate transition-related opportunities to generate strong returns for members while building portfolio diversification and resilience
^We anticipate our carbon footprinting coverage will expand as data quality and availability improves over time.
*Excludes the Direct Investment Option
Keeping you informed
We’ll continue to measure and report on our progress to net zero and keep you up to date.
- Climate change reports and any other updates will be links below once they become available
Reaching global ‘net zero carbon emissions’ simply means achieving an overall balance between the greenhouse gas emissions produced and greenhouse gas emissions taken out of the atmosphere. According to the Climate Council, it means we can still produce some emissions, if they’re offset by processes that reduce greenhouse gases already in the atmosphere*.
We’ve already taken steps to reduce the carbon intensity of our operations and we’re proud to be one of the first super funds to be certified Carbon Neutral by the Australian Government through Climate Active – Australia’s collective initiative for climate action. We’re now committing to reduce the carbon intensity of our investment portfolio. We aim to reduce our exposures to carbon-intensive assets and increase our investments in renewable energy or other low-carbon solutions.
* Climate Council (https://www.climatecouncil.org.au/resources/what-does-net-zero-emissions-mean/)
As an Industry SuperFund, we care about making a positive difference to our members' lives by helping to set them up for a better future.
We believe environmental, social and governance (ESG) factors can impact investment risks and returns and contribute to our ability to deliver sustainable growth for the benefit of our members.
The transition and physical risks of climate change can negatively impact the value of investments if we don’t act to mitigate climate risk. At the same time, committing to net zero will help us take advantage of potential investment opportunities to create value for our members.
CareSuper has held a number of forums inviting members to share their views on responsible investment and sustainable super. These sessions have provided an invaluable way to measure members’ views on climate change over the past few years.
CareSuper has listened to members’ views, which has helped shaped our decision and course of action in setting carbon emission reduction targets.
It’s clear from these forums that members are aware of climate change risks and support the introduction of measures to reduce these risks across the Fund’s investment options while ensuring the best possible returns are achieved.
Committing to net zero carbon emissions by 2050 means that over time our investment portfolio (excluding the Direct Investment Option) will be less exposed to high greenhouse gas emitting companies and by 2050, the emissions from members’ investments should be reduced to net zero.
The transition to a low carbon economy will be a huge economic transformation – and as always, our strategy will continue to be focused on protecting our members’ super from risk while capitalising on investments we believe will create value and help deliver strong returns.
No. Our investment approach and objectives aren’t changing. We’re still aiming to achieve strong long-term returns for our members, while controlling risk.
We’ll be closely monitoring our investments to reduce climate change risk and looking to invest in new climate transition related solutions – all to ensure strong risk adjusted returns over the long term. We’ll also be requiring our investment managers to do the same.
This approach applies across all our investment options and is happening automatically – you don’t need to take any action.
Rest assured that acting in your best financial interest is our priority – and at any point, if it appears we may need to adjust our Net Zero goals and timeframes to ensure members’ best financial interests, we’ll do so accordingly.
Our Net Zero Roadmap sets out the specific details of how we’ll work to achieve our goal and it will guide our activities over several years. A copy of our roadmap is available here.
Our goal is to adjust our investment portfolio over time to ensure we reduce carbon emissions progressively in line with our 2030 interim targets.
Our 2030 interim targets include:
- Our aim to achieve 45% portfolio-wide reduction in scope 1 and scope 2 carbon emissions by 2030*. This reduction will be measured in tonnes of carbon per million dollars invested.
- Investing at least 3% of total funds under management in climate transition related opportunities by 2030.
*Excludes the Direct Investment option.
Setting a 2030 carbon emission reduction target will serve as a checkpoint that will allow us to measure the progress of our overall carbon reduction goal. This will help to ensure that our 2050 net zero objective is achieved.
To track our progress on the 2050 net zero carbon emissions goal, we’ll:
- Monitor and measure our carbon footprint in our shares portfolio on an annual basis and extend this carbon footprint beyond shares – to the whole of portfolio over time as data improves
- Measure the success of our engagement approach with our fund managers and companies. For example, by comparing a company’s plans to their actions.
- Track the value of our exposure to climate transition related solutions year on year and consider new or additional investment opportunities as they arise.
- Monitor and report on the carbon performance and trajectory of our investment portfolio over time through our internal processes.
As set out in our Responsible Investing Policy, at CareSuper, we prefer to engage with companies and our fund managers first before divesting from investments. We believe engagement and stewardship is likely to result in better outcomes all round because it leads to decarbonisation in the real-world economy.
If a company or asset doesn’t have a solid strategy or business plan to transition to the low carbon economy, then we’ll consider divesting from these investments over time.
We’ll publish a climate action report towards the end of each calendar year which will provide detailed information on how we’re tracking against our interim targets and actions. The first inaugural Climate Action report will be published in 2024.
We’ll also update members with relevant news throughout the year.
When pursuing our net zero targets, we’ll continue to invest in line with our investment framework and approach. As such, we don’t anticipate that fees will increase because of our commitment to net zero.
Our net zero program will always be managed with members' best interests at heart and in a way that’s consistent with our investment philosophy which aims deliver strong long-term performance.