Funds Management News

HESTA puts emissions-intensive companies on notice

Posted by Anton Murray Consulting on . Posted in Funds Management News


The super fund has announced possible divestments.  HESTA has created a watchlist of companies that it deems unconducive to its new goal to halve normalised emissions across its portfolio by 2030. On Tuesday, HESTA announced it has lifted to 50 per cent an interim target it set in 2020 to achieve a 33 per cent reduction in normalised emissions by 2030.

In doing so, the fund has announced heightened monitoring and engagement with key emissions-intensive companies, including AGL, Origin, Santos and Woodside, having identified that all four face “significant” decarbonisation challenges and require a “major shift” in their strategies to offer low-carbon energy products. The fund revealed that it has written to the chairs of all four companies informing them of its decision to place them on watchlist and outlining its heightened concern over the disparity between their strategic targets and a 1.5-degree Celsius transition pathway. Under its engagement escalation framework, HESTA confirmed it has several tools at its disposal, including divestment where it considers there is “inadequate evidence” of progress to address risks and it is in the best financial interests of members.

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