Colonial First State announces target of net zero corporate emissions by 2030
Kelly Power
Colonial First State (CFS) has announced its target to achieve net zero Scope 1 and 2 greenhouse gas emissions across its operations by 2030.
A range of energy efficiency opportunities will deliver early and significant progress towards this target, including 100 per cent renewable energy power purchase agreements across key offices in Sydney and Melbourne.
CFS’ commitment to reducing its operational emissions builds on its investment portfolio emissions reduction plans and is reflective of the growing importance of sustainability to its members.
In October 2021, CFS committed to net zero emissions by 2050 across the 160 super, pension and investment funds in its FirstChoice portfolio[1], and a 30% reduction by 2030[2]. Since making this commitment, CFS has delivered an assessment of its FirstChoice portfolio emissions baseline, developed a climate roadmap and performed climate scenario analysis to understand the implications of climate change on future returns. Further details will be published in a progress report to be issued next year.
CFS has also undertaken engagement with investee companies on climate change, including through the appointment of a dedicated stewardship provider to directly engage on CFS’ behalf. In the first quarter of the 2022 calendar year, the provider engaged with 352 companies within CFS’ global equities portfolio on a range of sustainability issues and objectives, with environmental topics featuring in almost one third of these engagements.
CFS has also expanded its ability to engage directly with investee companies through its membership of Climate Action 100+, which allows it to partner with other investors to influence the world’s largest greenhouse gas emitters to take necessary action on climate change.
CFS’ own research shows that half of members intend to switch some of their investments to a sustainable option in the next two years. This feedback has informed the development of CFS’ first sustainable fund, Thrive+, which will be launched to all CFS investment, superannuation and pension customers in the coming weeks.
Kelly Power, Chief Executive Officer of Superannuation, said CFS’ commitment to climate change forms part of its strategic purpose to help Australians achieve financial freedom in retirement.
“As one of Australia’s leading superannuation and investment businesses, with approximately 1,600 employees and more than 900,000 members, we recognise the important role we can play in supporting an orderly transition.
“Our priority is delivering the best possible returns for our customers to enable them to achieve financial freedom in retirement. That’s why we’re committed to managing the risks associated with climate change – both at an operational and investment level. By supporting an orderly transition and operating our business sustainably, we can remain focused on delivering for our customers today and into the future.”
As CFS takes steps to achieve its net zero commitments, it will explore additional actions to reduce a wider range of emissions, including Scope 3 emissions across its corporate value chain, to ensure it continues to meet customer expectations into the future.
———
