Climate change - net zero roadmap
We aim to support our members' financial futures by managing their retirement savings responsibly
This includes considering the material risks and opportunities of climate change both today and for generations to come.
In line with our objective to support members achieving their best financial confidence in retirement, we have committed to net zero portfolio emissions by 2050 (from a 2025 baseline).1
We will work towards net zero by:
- monitoring portfolio greenhouse gas emissions over time
- investing in climate solutions where opportunities align with members’ best financial interests, and
- seeking to use stewardship to encourage emissions reduction and improved climate-related practices in portfolio companies in support of long-term value creation.
This approach currently covers listed equities and fixed interest only and is not applied across all asset classes.
Why managing climate-related risks and opportunities matters
Climate change will have far-reaching implications for industries, economies, society and the environment if left unaddressed. It is already reshaping how markets price risk, allocate capital and how businesses operate across the economy.
It presents both risks and opportunities for our investment portfolio, requiring effective management to support long-term retirement outcomes for members.
Our approach to net zero is grounded in our responsibility to act in the best financial interests of members. By developing and implementing strategies to manage these risks, we aim to preserve and grow the retirement savings of our members over time.
From 1 January 2025, Australia’s mandatory climate-related financial disclosure regime requires super funds to assess, manage and disclose climate-related risks and opportunities.3
The AASB S2 Climate-related Disclosures standard sets out requirements for providing useful information to stakeholders about how the climate-related risks and opportunities may affect financial performance and resilience over the short, medium, and long term. It focuses on four key areas of governance, strategy, risk management, and metrics and targets.4
This regulation reinforces the importance of a clear and transparent roadmap outlining how we are responding to the transition to a low-carbon economy.
Where we are now
Measurement and analysis of portfolio emissions
Following the merger of CareSuper and Spirit Super in November 2024, we have calculated the financed emissions intensity of the aggregate portfolio for listed shares and fixed interest to the period ending 30 June 2025 as 38.69 tCO2e per million AUD invested. This will serve as a baseline to measure progress towards net zero for those two asset classes going forward.
Investment in climate solutions
As at 30 June 2025, 3.9% of the revenues across our listed shares asset classes came from climate solutions.
We’ve used the MSCI Green Revenue Exposure Metrics5 to measure our revenue exposure to climate-related and natural capital investment solutions.
Stewardship to encourage portfolio decarbonisation
Alongside the Australian Council of Super Investors (ACSI), we regularly meet with portfolio companies on climate-related matters.
We may also use our shareholder voting rights in support of decarbonisation.
As at 30 June 2025, we have identified that 63% of the listed shares portfolio emissions are attributable to Australian-domiciled companies and will therefore be an engagement priority.
Additional information
The ability to achieve our net zero by 2050 commitment also relies on policymakers and portfolio companies progressing their own net zero commitments. Given the scale of policy, economic and societal change required, and the inherent challenges associated with long-term forecasts, there is some unavoidable uncertainty as to whether the commitments of external stakeholders will be met in a timely manner.
Where we are going
The net zero by 2050 roadmap outlines some of the key actions we expect to take over the next three years to support our commitment, noting that timing, areas of focus and outcomes may change over time.
Monitor and analyse net zero metrics
- Monitor, analyse and report annually on progress towards net zero by measuring the carbon footprint across listed shares and fixed interest asset classes, where there is sufficient data to do so, and analyse changes over time to support assessment of our actions.
- Undertake a risk assessment to measure portfolio exposure to the physical risks of climate change, where data is available to do so.
- Seek to extend measurement of the carbon footprint to asset classes beyond listed shares and fixed interest.
Identify investments in climate solutions
- Measure and report year-on-year percentage of investments in the listed shares and fixed interest asset classes that have been identified as climate solutions through the MSCI Green Revenue Exposure metrics.5
- Develop an internal framework for identifying investments in climate solutions, where consistent with members’ best financial interests, in asset classes beyond listed shares and fixed interest.
Use stewardship to encourage portfolio decarbonisation
- Continue to exercise our ownership rights to vote on climate-related resolutions for our Australian and overseas listed shareholdings in a manner aligned with our Responsible Investing and Voting policies, and with outcomes that are in the best financial interests of our members.
- Analyse and evaluate the climate-related stewardship policies and practices of our external managers and seek to engage where climate-related risks limit progress towards net zero by 2050.
- Alongside Australian Council of Superannuation Investors (ACSI), seek to engage with priority companies identified as contributing to greenhouse gas emissions in the portfolio.
- Collaborate with our industry partners to leverage portfolio company engagement opportunities, build knowledge and keep informed of developments for managing climate-related risks and opportunities.
Disclose progress through annual reporting
- Disclose our progress through annual climate reporting and other public disclosures, based on available data.
When we refer to reducing greenhouse gas (GHG) emissions in our portfolio, we’re focusing on the emissions associated with the companies we invest in. Our net zero by 2050 commitment covers emissions defined as:
Scope 1 emissions
Direct GHG emissions owned or controlled by the operations of a portfolio company. For example, from manufacturing processes, company vehicles or onsite fuel combustion.6
Scope 2 emissions
Indirect GHG emissions occurring through the generation or purchase of electricity, heating or cooling that is consumed by a portfolio company.6
These definitions align with the Australian Sustainability Reporting Standard (AASB) S2 Climate-related Disclosures and are measured in accordance with the Greenhouse Gas Protocol Corporate Standard (2004), expressed as metric tonnes of CO2 equivalent (tCO2e).
Disclaimers
1Scope 1 and 2 tCO2e per million AUD invested. This commitment is subject to data availability and other factors outside of our control.
2CareSuper Stewardship Statement
3Following amendments to the Corporations Act 2001 (Cth) (Corporations Act), in-scope reporting entities are now required (on a phased-in basis) to prepare annual sustainability reports in parallel with their financial reports under Chapter 2M of the Corporations Act.
4Australian Accounting Standards Board, AASB S2 Climate Related Disclosures.
5https://www.msci.com/documents/1296102/16472518/ESG_ImpactMetrics-cfs-en.pdf.
6Please see the glossary at https://carbonaccountingfinancials.com/files/standard-launch-2025/PCAF-PartA-2025-Full-Document-Clean.pdf.