HESTA reaches climate target ahead of schedule

Oksana Patron

13 June 2023

HESTA has announced it has reached its initial climate target eight years ahead of schedule.

The superannuation fund said that its target, which assumed a 33% reduction in normalised portfolio emissions by 2030, highlights its efforts to aim to build a portfolio that factors in climate-related risks.

Hesta has also published its second “Climate Report” which detailed its approach to managing these risks while supporting transition to net-zero emissions by 2050 and the progress of the close to $72 billion industry Fund’s Climate Change Transition Plan (CCTP).

HESTA chief executive Debby Blakey said that now was the time to deal with net-zero and mitigating climate-risks required an accelerated transition and “a more ambitious approach to emissions reductions”.

HESTA has made a commitment to be investing 10% of its investment portfolio in climate solutions such as renewable energy and sustainable property, by 2030.

Further to that, to demonstrate its efforts to invest efficiently and at scale in transition opportunities, HESTA recently signed a Platform Agreement with ReNu Energy for potential co-investment by ReNu Energy and HESTA in selected green hydrogen projects – the cleaner form of hydrogen production.

The fund also established a renewable energy platform, Intera Renewables (Intera) with investment partners, where the initial seed assets in the platform included four wind farms and a solar farm across four states (Victoria, Queensland, Tasmania and South Australia.

“Australia has the potential to become a global leader in renewable energy generation that will help attract global capital, support economic growth and drive long-term value for investors,” Blakey said.

“Throughout 2023 and beyond we’re continuing to focus on opportunities to invest in developing innovative technologies and businesses at the forefront of decarbonisation.”