Net Zero by 2050 has become the climate change action target for businesses and investors all over the world. A group of Australian asset managers have made the further commitment to reach the interim target of 45% by 2030 as recommended by the IPCC, and they united under the banner Climate League 2030. 

It’s an initiative from the Investor Group on Climate Change (IGCC), and they brought on board core participants including; Aware Super, Cbus, IFM Investors and QIC.

In total, the investors manage more than $919 billion among them, and they all support progress towards a further reduction of 230 million tonnes from projected annual emissions in 2030.

Companies, and their investors, hold the power to drive material change. The report suggests that listed companies are responsible for some 40% of emissions in Australia, with the superannuation industry holding a collective 20 per cent share of equity in these businesses.

“Through Climate League 2030, the private sector is voicing their support for a rapid reduction in Australia’s greenhouse emissions, and showing, with their own operations, that meaningful progress is possible.” says Rebecca Mikula-Wright, CEO of IGCC.

“They’re winding down investments in carbon-intensive industries, they’re investing in clean energy, they’re going carbon neutral themselves.

The league was founded a year ago, and they’ve now released their first annual report to highlight achievements so far. 

As a group, the firms invested $43.1b in climate solutions. And 42% of Climate League participants are already carbon neutral for at least scope 1 and 2 emissions.

While only 16% exclude all fossil fuel investment, 37% are phasing out investment in carbon intensive sectors.

Engagement is being used by 63% of participants to communicate and influence their portfolio companies. And they’re collaborating, through programs like Climate Action 100+.

In terms of frameworks, it was useful to see which systems they were using. And what was noted, is that there’s still a broad spread of methodologies; 26% use the Paris Aligned Investment Initiative Net Zero Investment Framework, 16% use Science Based Targets Initiative, 5% use the Net Zero Asset Owner Alliance protocol, and, 42% use other independent methods, or in-house scenario analysis.

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