We believe that climate change is one of the most significant challenges we face as a society today, and that tackling climate change needs to be done in partnership or alongside others with a focus on real world impact.
As investors, our aim ultimately is to contribute to the energy transition through our investments - for example, by investing in climate investment opportunities, investing in companies and assets that are actively transitioning, advocating and engaging to improve management of climate risk. In doing so, our aim is to help ensure the transition is as orderly as possible so that our members’ benefits are maximised.
Our climate change goals
Net zero portfolio carbon emissions by 2050
Contribute to a 45% reduction in real world emissions by 2030 (compared to a 2019 baseline)
|Our 1% allocation to climate change investments
Engage with our top 20 Australian listed emitters
Our net zero goal refers to our financed scope 1 and 2 emissions*, that is, the emissions we finance through our investment and lending activities.
Our goal currently encompasses over 70% of our portfolio including listed equities, property, infrastructure, and a subset of our credit portfolio. These are the asset classes we are currently able to measure. As we become able to measure additional asset classes, they will then also be included in our net zero goal.
* Financed scope 1 and 2 emissions refers to the share of a company’s scope 1 and 2 emissions that can be attributed to Cbus’ investment and lending activities. Scope 1 emissions are direct emissions from activities that a company controls (e.g. using gas for heating, emissions from fleet vehicles). Scope 2 emissions are indirect emissions related to the electricity that a company purchases and uses. Emissions are created when the electricity is produced.
|Our 2030 goal focuses on a connection to real world decarbonisation.
To track our progress against our 2030 goal, we use carbon intensity (tonnes of CO2 per $M invested) rather than ‘absolute’ carbon emissions because this allows us to account for growth in our portfolio over time.
The challenge with carbon intensity is that it constantly changes as investment markets fluctuate.
Given our commitment to transparency, and our desire to ensure we measure real world impact, we adjust for changes in asset values when we assess our progress each year to better connect to real world impact.
We invest in climate change investments across our portfolio with the aim of increasing our exposure over time.
We have a 1% allocation available for climate change investments which allows us to invest in the technologies needed for a low carbon economy. This allocation is specifically designed to accommodate investments that do not fit within the broader risk/return profiles of existing portfolios.
It also aims to finance the transition by supporting companies and assets in sectors where emissions are hard to reduce that need investment to facilitate their decarbonisation.
Our climate change engagement focuses on our top 20 Australian listed equity companies who contribute most to our carbon footprint to improve their responses to climate change.
We aim to engage with these listed companies either directly or through participation with others.
For further information see our Stewardship Statement (PDF).
Our latest climate change roadmap
We use roadmaps to identify and track the specific actions we hope to achieve in this important area, over both the near and longer term.
Each roadmap runs for a two-year period, ensuring we continue to demonstrate progress against identified actions, and allowing us to adjust our ambitions as climate science, policy, data, and our understanding evolves.
Our third Climate Change Roadmap focuses on action and measurement.
Our progress towards our climate change goals
Each year we disclose the progress we have made towards meeting our climate goals.
And to completing the actions captured in our climate change roadmap under the Task Force for Climate-related Financial Disclosures in our Responsible Investment Supplement.
Our approach to responsible investment
Investing responsibly is important for our members’ long-term returns and their quality of life in retirement.