Pradeep Philip

The Australian government will soon decide on its 2035 emissions reduction target, with insiders reporting it will settle somewhere between a 65% and 75% reduction on 2005 levels.

New scenario analysis from Deloitte Access Economics, prepared for Future Group, shows how a weaker 65% target compared to a stronger 75% target would impact the economy.

75% is the economic opportunity we can’t afford to miss:

• A higher interim target and associated policy action could bring forward $20 billion of investment each year in the decade to 2035.
• 75% by 2035 offers Australia one of the single biggest boosts to future business investment.
• The 75% target brings forward investment in Australia’s transition, supporting an additional 45,000 jobs per year on average between 2025 and 2035 above the 65% by 2035 scenario.
• The higher climate target increases export opportunities to the tune of $190 billion for Australia.

Deloitte Access Economics Lead Partner Pradeep Philip says: “Compared to 65%, a 75% target means more jobs, more exports, and a stronger economy. Time and time again, our economic scenario modelling has concluded that strong targets, which can attract business investment, are good for the economy.

“Australia adopting a 75% by 2035 target offers greater economic opportunity and a lower cost to transition on the path to net zero by 2050.

“Achieving a 75% target can bring forward significant investment across the economy, unlocking a $227 billion economic opportunity, in today’s dollars, and 45,000 more jobs per year over the next 10 years compared to a 65% target.”

“This modelling shows that achieving a 75% target sets Australia up for a least cost transition to net zero – growing new industries, supporting jobs and transitioning our economic base onto new growth paths.”

Future Group backs 75%

Superannuation provider Future Group – the parent company of Future Super, Verve Super, GuildSuper, Child Care Super and smartMonday – is backing a 2035 emissions reduction target of at least 75%.

Over 350 businesses have joined Future Group’s campaign including Fortescue, Atlassian, Canva, Unilever, Volvo Group Australia, Culture Amp, Bank Australia, Intrepid Travel and Ben & Jerry’s.

These companies have signed the Business for 75 open letter^[1] calling for the government to commit to at least a 75% target.

Future Group Chief Executive Simon Sheikh says: “We’ve joined with businesses from across Australia including Fortescue, Atlassian, IKEA, Canva, Unilever, Volvo Group and more than 400 others to urge the Australian government to back a credible 75% emissions reduction target as economic modelling shows this will support business investment, innovation and growth.

“Australia is in a race to secure the global capital required to establish new green industries. Modelling completed by Deloitte Access Economics shows that a target of 75% can unlock more than $370 billion in additional economic growth for our country over the next 10 years. This is the equivalent of more than $10,000 per person.

“As the world decarbonises, Australia holds a winning hand: we have abundant land, affordable renewable energy, critical minerals, and a skilled workforce. With these strengths, we can build a future powered by clean energy, advanced manufacturing, and secure, well-paid jobs in our regions. But ambition must come first.

“While some in parliament are trying to slow things down with climate denial, global partners are looking at Australia to see if we’re serious about emissions reductions. A strong 2035 target will send a clear signal to investors, and global markets, that Australia is open for business.”

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Notes:
[1] Business for 75 open letter

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Gerard Kerr

Acenda welcomes Equity Trustees Superannuation Limited (ETSL) as the new Trustee for its customers with individual life insurance policies held in super.

The change completes the transition from NULIS Nominees (Australia) Limited (NULIS) to ETSL, and the transfer of members with life insurance policies from MLC Super Fund to Smart Future Trust.

Gerard Kerr, Chief Executive Individual Business for Acenda, said the new partnership with ETSL supports Acenda’s strategic vision for growth and innovation.

“Trustees play a crucial role in prioritising members’ interests and safeguarding their benefits. By partnering with ETSL, who are recognised for their expertise and flexibility, we aim to provide long-term support for our customers,” he said.

“Acenda is building on our strengths as a life insurer by focusing on growth and innovation. This includes partnering with a specialist trustee that supports our growth ambitions and enhances our product capabilities and proposition to customers.

“We want to continue to deliver an exceptional and seamless experience for our customers and advisers. I am delighted that this transition has been a smooth one and we remain focused on maintaining the high level of service that our customers expect and deserve.”

ETSL is part of the Equity Trustees Group. Equity Trustees was established as an independent Trustee and Executor company in 1888 and has become one of Australia’s largest specialist trustee companies. ETSL partners with Future Group, as the sponsor and master administrator of the Smart Future Trust.

Mick O’Brien, Managing Director of Equity Trustees, said: “We are delighted to have been selected to be the trustee for Acenda insured members. We look forward to a productive collaboration focused on delivering the best possble outcomes to members.”

Simon Sheikh, CEO Future Group said: “We know that trust is key when moving retirement and insurance savings. We are focused on building a better future to retire to and we look forward to sharing that vision with transitioned Acenda members  while delivering exceptional results.”

More than 98,000 super fund members with life insurance policies were successfully transitioned from the MLC Super Fund to Smart Future Trust.

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Simon Sheikh

Sustainable superannuation company Future Group has launched a first-of-its-kind tool, RealZero Check, a free and open source, science-based tool designed to help investors and financial institutions set credible net zero targets and measure their decarbonisation progress.

Developed in partnership with the University of Technology Sydney’s Institute for Sustainable Futures, RealZero Check uses the One Earth Climate Model to evaluate a portfolio’s emissions against global carbon budgets, showing the decarbonisation pace needed to align with the Paris Agreement’s 1.5 degree target.

Despite widespread commitments to net zero by 2050, it’s challenging to gauge whether these pledges represent real, near-term progress needed to avert catastrophic climate impacts.

RealZero Check applies the carbon budgets necessary to limit warming to 1.5 degrees on a sector-by-sector basis so investors can see how their investments stack up against those carbon budgets, and where change might be necessary to really make progress towards net zero.

“RealZero Check is about real, measurable progress toward genuine emissions reduction, setting a new global standard for responsible investing and climate accountability,” said Simon Sheikh, Future Group CEO.

“With 79%* of Australians desiring climate-aligned net zero commitments from their financial providers, RealZero Check will help the financial services sector develop meaningful, authentic, science-backed net zero strategies.

“Furthermore, it will empower investors to make informed investment choices by breaking down portfolio emissions in a way they can easily compare their impact against scientifically backed benchmarks.

“It is not about ticking boxes or relying on carbon offsets. We believe this is a world-first, especially in that we are making this tool free and open source – anyone can use it. This aligns with Future Group’s commitment to supporting impactful climate action in the finance industry.

“We believe capital is the key to achieving net zero targets. We don’t have the time to wait until 2050, there is only a small window of opportunity to create real change. RealZero Check will help get the industry on track.”

The tool’s development complies with directives and crackdowns on greenwashing from regulatory bodies, including the Australian Securities and Investments Commission, which advocate for transparency in sustainability claims. It also serves as a valuable tool for both investors and regulators to combat misleading net zero claims.

Jeremy Cooper, Future Group’s Carbon Advisory Board External Chair, says that RealZero Check provides a much-needed resource for investors to validate their net zero commitments against climate science, aligning their financial decisions with a sustainable future.

“Unlike traditional models, RealZero Check focuses on genuine emissions reduction, helping investors avoid over-reliance on offsets and meet real climate goals.

“By offering this tool for free, Future Group is not only advocating for but actively supporting a climate-responsible investment landscape,” Mr Cooper said.

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*According to Responsible Investment Association of Australasia research.

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