IFM Investors’ infrastructure equity portfolio hits carbon milestones

Yasmine Raso

Senior Journalist

26 February 2024

IFM Investors’ latest Sustainable Business Report for 2023 has revealed approximately 85 per cent of its infrastructure equity portfolio companies now have carbon or greenhouse gas emission (GHG) reduction targets in place, highlighting the global manager’s progress in climate change transition.

This accounts for close to 97 per cent of the GHG emissions in the portfolio and 99 per cent of the portfolio’s net asset value (NAV).

The report also indicated several initiatives undertaken by the manager on stewardship, advocacy and stakeholder engagement on climate change and the net zero transition, including:

• “Installing more than 150 megawatts of behind the meter renewable capacity across IFM’s infrastructure equity portfolio for assets’ self-consumption.
• Working with profit-to-member superannuation funds to deliver a policy blueprint to the Australian government to facilitate greater investment in the energy transition  
• Signing a Memorandum of Understanding (MoU) with the United Kingdom Government signalling IFM’s intention to invest £10 billion in the UK by 2027, including energy transition projects 
• Sending a delegation of senior IFM leaders to attend and participate in a range of events at COP28 
• Continuing to reinforce climate change as a priority theme in IFM’s listed equities stewardship activities.”

“Our sustainable investment approach underpins our focus on maximising long-term risk-adjusted returns and recognises that delivering benefits for the economy, environment and society is a crucial part of value creation,” IFM Investors Chief Executive, David Neal, said.

IFM Investors’ funds under management (FUM) also increased by 8.1 per cent to AUD$215 billion in 2023.

“Systemic risks like climate change can adversely impact the performance of portfolios, which is why it’s so important we work closely with our portfolio companies to increase focus and improve outcomes on sustainability and safety,” IFM Investors Global Head of Sustainable Investment, Maria Nazarova-Doyle, said.

“The key milestones in the report demonstrate the continued focus of everyone at IFM on delivering for our clients and the safe and secure retirement of the millions of working people they represent.”