Australian pension funds make net zero pledge

AustraliaAustralia’s biggest superannuation fund, AustralianSuper, has committed to having a net-zero carbon emissions portfolio by 2050. The announcement follows the dumping of its shares in mining company, Whitehaven Coal, earlier this month. AustralianSuper, which has A$188 billion in assets, is not the only Australian asset owner or manager to make such a commitment. Just days earlier, fund manager IFM Investors pledged to become carbon net zero by 2050 in line with the Paris Agreement. IFM, which has $114.6 billion in assets under management, intends to set up a multi-disciplinary taskforce, led by its investment team, to establish the necessary frameworks and policies to reduce emissions across its portfolio. “This is a natural step and an important one if IFM is to continue delivering on its purpose to protect and grow the long-term retirement savings of working people,” said IFM Investors CEO David Neal. Climate change has become a more important issue for Australian investors in the last 12 months, especially among pension funds. Three super funds made a zero net pledge between July and September: UniSuper, the fund for university workers, Hesta, the fund for health and community sector workers, and Cbus, the construction and mining industry fund. Meanwhile, the Retail Employees Superannuation Trust, a pension fund with $39.5 billion in assets, recently reached a settlement with one of its own members over a lawsuit connected to climate change disclosure. Mark McVeigh had sued the fund failing to disclose business risks linked to climate change, alleging it was a violation of Australia’s Corporations Act. © 2020 funds global asia

Industry comments

Investing in tomorrow’s world

investmentAt times like these, HSBC Asset Management easily pivots towards emerging markets.

The spotlight on growth markets and the need to be nimble and dynamic is ever-sharper, given the difficulty in predicting monetary policy in the world’s major nations.

Sponsored feature: Navigating the complexities of FX execution and currency risk

A comprehensive, cost-effective, and transparent currency overlay hedging solution is crucial to mitigate FX exposure risks in the complex landscapes of Japan and China's FX markets, explains Hans Jacob Feder, PhD, global head of FX services at MUFG Investor Services.


Transitioning to an era of scarcity

The world is transitioning from an era of commodity abundance to one of undersupply. Ben Ross and Tyler Rosenlicht of Cohen & Steers believe this shift may result in significant returns for commodities and resource producers over the next decade.

Asia credit: An outsized winner in the region’s energy transition?

Ross Dilkes, fixed income portfolio manager at Wellington Management, examines the opportunities and risks for bond investors presented by the region’s decarbonisation agenda.

A quiet revolution in Japan’s corporate governance

revolution, Japan, corporate governance, Shareholders, corporate, governance, standards, improvement, Tetsuro Takase, SuMi TrustShareholders in Japan no longer accept below-par corporate governance standards. Changes are taking place, but there are still areas for improvement, says Tetsuro Takase at SuMi Trust.

Why rising demand for healthcare is creating investment opportunities in China

rising demand, healthcare, investment, opportunities, China, Robert St Clair, Investment Strategy, Fullerton Fund ManagementRobert St Clair, head of investment strategy at Fullerton Fund Management, explores the reasons investors should be paying attention to the rising demand for healthcare in China.

Executive Interviews

Executive interview: PGIM CEO on where the ESG flowers should bloom

Sep 27, 2021

David Hunt, president and chief executive of PGIM, tells Romil Patel about leading a top 10 global asset manager in times where “empowering and encouraging the kind of investment decisions as...

Executive interview: Nicolas Moreau’s orderly transition

Jul 12, 2021

Nicolas Moreau, CEO of HSBC Asset Management, is moving to Asia as the firm looks to connect more directly with the region’s growth story. ESG is also a key focus – including the ‘just’ carbon...


India: An “obvious choice for global investors”

Jun 22, 2023

Funds Europe, the sister publication of Funds Global Asia, hosted an India investment discussion with two seasoned experts and asked if India is the ‘last one standing’ from the Brics phenomenon. We also hear that for India, the inclusion of Indian bonds in a major index may not be the desired...

Roundtable: Singapore comes of age as an Asian ESG hub

Dec 01, 2021

Strong ESG credentials strengthen the case for Singapore as a leader in Asia of the post-Covid recovery. Our panel discusses the risks and opportunities.