Financial institutions managing more than $919 billion today reported their first year’s progress supporting 45% emission cuts by 2030, as part of the Climate League 2030 initiative:
- Three quarters of Climate League participants have now announced their emissions reduction targets.
- A sixth have cut fossil fuels from their portfolios, and an additional 37% are currently phasing out investment in carbon-intensive sectors and companies.
- In the last year, Climate League participants have directed an additional $5.4b towards investments in climate solutions, including clean energy generation, climate bonds, and energy storage, adding to the $37.7 billion they already committed.
- 37% of Climate League participants announced plans to increase investment in climate solutions.
- More than a fifth of Climate League participants achieved absolute emissions reductions across their portfolio over the last financial year, and 37% reduced the emissions intensity of their portfolios.
- 42% of the Climate League participants are already carbon neutral for at least
Scope 1 & 2 emissions.
Climate League’s signatories have also used their influence on companies in their investment portfolios, with meaningful results:
- New short and medium term net zero targets by Australian companies.
- Some of Australia’s biggest emitters improved their approach to a just transition.
High profile participants in Climate League 2030 include Aware, Cbus, IFM, QIC, Australian Ethical and Australian Super.
Rebecca Mikula-Wright, the CEO of Investor Group on Climate Change, said: “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.
“They’re winding down investments in carbon-intensive industries, they’re investing in clean energy, they’re going carbon neutral themselves.
“Investors are also engaging with corporates to request climate transition plans, short and medium term targets, and linking executive remuneration to climate change targets.
“That private sector action needs to be matched with government policy.
“Australia’s most important and mainstream investors are looking for an Australian Government policy target of 45% emissions reduction target by 2030.
“These investors know their members are experiencing extreme weather events themselves and want their money to be invested in line with the best climate science and a 1.5C future.
“So, these investors are acting on their fiduciary duty; advocating for safe climate policy, investing increasingly sustainably on behalf of their beneficiaries, and protecting the financial, social and environmental systems that are crucial to all our futures.”