HESTA has a specific Climate Change Policy which outlines our principles and commitments in relation to the incorporation of climate change considerations into investment processes and decision-making. Given our outsourced investment model, encouraging our external investment managers to incorporate climate change and carbon emissions risk into their investment decision making processes is central to our approach.
We have signed successive annual Global Investor Statements on Climate Change, supporting greater action by policymakers on the issue of climate change.
The information below outlines in more detail the activities undertaken by HESTA to respond to climate change risk and opportunity in our portfolio.
Reduced portfolio exposure to emissions intensive or fossil fuel holdings: In 2015 HESTA introduced a portfolio wide restriction on new investment in companies materially involved in new or expanded thermal coal assets. In our environmentally and socially responsible investment option, Eco Pool, we introduced a further restriction on investment in companies with material involvement in
- exploration, production or transportation of thermal coal assets;
- contracting or supplying to listed companies undertaking these activities; or
- generation of electricity from brown coal or lignite.
Sought climate supportive policy from governments - this is undertaken on our behalf by the Investor Group on Climate Change and to a lesser extent, our engagement service providers, the Australian Council of Superannuation Investors, Regnan - Governance Research & Engagement and Hermes Equity Ownership Services.