IFM Investors set unprecedented emissions targets for critical infrastructure assets
At Media Super, we understand members expect competitive investment outcomes, while we're also investing their money responsibly. We also recognise the significant investment risk posed by climate change, and broader environmental, social and governance (ESG) issues. As such we are very pleased that one of the Fund's largest investment managers has set emissions targets across its key Australian assets.
Household names such as Ausgrid, Melbourne Airport, Brisbane Airport, NSW Ports (Botany and Kembla), the Port of Brisbane, Southern Cross Station in Melbourne and Northern Territory Airports. (Darwin Airport and other NT airports) will for the first time have emissions reduction targets through to 2030 and beyond.
The unprecedented initiative was announced in late August by IFM Investors, who own or co-own the assets on behalf of 7 million working Australians who are members of industry superannuation funds, including Media Super.
The targets will see emissions reduced by more than 200,000 tonnes CO2 equivalent annually by 2030 – the same as removing almost 70,000 cars from the road. The emissions cuts will prevent millions of tonnes of carbon entering the environment over the life of the assets.
The assets have established emissions reduction targets ranging from 8–25 per cent by 2024 to 38–100 per cent by 2030. IFM Investors has worked closely with the asset managers and co–owners to commit to meaningful emissions reductions, while maintaining returns for its investors.
The infrastructure assets have initiated sweeping programs to reduce carbon emissions through alternate power sources, the uptake of electric and low emissions vehicles, LED lighting, rooftop and large scale solar, smart management systems and energy efficient office spaces.
Michael Hanna, IFM Investors' head of Australian infrastructure said: "This exciting initiative represents a genuine commitment and start to aligning our assets to the Paris Agreement, and it makes perfect business sense by reducing costs, mitigating future business risks and contributing to outcomes that our customers value."
Media Super CEO Graeme Russell said: "As a large investor, we recognise our responsibility and ability to mitigate climate change challenges and are pleased that IFM Investors is working with these assets to undertake significant emissions reductions.
"Within our own investment portfolio, we have committed to investing $330 million into renewable energy, local innovation and infrastructure, and our member industries over the next three years."
This commitment is part of Media Super's broader management of ESG investment considerations. Find out more about our investment beliefs, investment practices and our Climate Change Position Statement.