https://www.miningweekly.com

Australia's second-largest pension fund blacklists thermal coal investments

2nd May 2024

By: Reuters

  

Font size: - +

SYDNEY - Australian pension giant Australian Retirement Trust said on Thursday it would stop investing in most thermal coal companies from July as part of a plan to hit net zero emissions across its portfolio by 2050.

The A$280-billion fund has introduced new rules to exclude any company which generates more than 10% of its revenue from the mining and sale of thermal coal, one of the most polluting energy sources.

"As a global investor, Australian Retirement Trust is committed to achieving a net zero greenhouse gas emissions investment portfolio by 2050," it said in a statement.

"Australian Retirement Trust applies exclusions in limited circumstances as part of its sustainable investment approach in accordance with members’ best financial interest."

The rule change puts thermal coal in the same category of excluded investments such as tobacco, cluster munitions and landmines, according to a notice on the fund's website.

However, the rule does not bar thermal coal investments made indirectly via money invested with other fund managers. It also does not apply to metallurgical coal, used in steel making.

Climate activists celebrated the move and said Australian Retirement Trust was the largest Australian pension fund to halt thermal coal investments.

"It’s a tribute to the thousands of members who have demanded greater climate action from the fund,” said Brett Morgan, superannuation funds campaigner at Market Forces.

The change is unlikely to lead to big adjustments in its local portfolio given major Australian coal miners New Hope or Whitehaven Coal are already absent from its main fund, according to fund filings from December.

Edited by Reuters

Comments

The content you are trying to access is only available to subscribers.

If you are already a subscriber, you can Login Here.

If you are not a subscriber, you can subscribe now, by selecting one of the below options.

For more information or assistance, please contact us at subscriptions@creamermedia.co.za.

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION