The announcement follows confirmation that a member of a rival fund has been taken to court for not attributing climate action as part of its long-term investment horizon.

The landmark trial for the case alleging that retail industry superannuation fund REST failed to protect a member’s retirement savings against climate change has been pushed back four months from its original proceeding date.

The legal action by REST member Mark McVeigh has argued that the $57 billion fund breached its fiduciary duties owed to him by failing to consider climate change risks. 

The three-day trial, which was originally set for July, is now taking place from 2 November.

In response, HESTA is the first major Australian superannuation fund to make carbon reduction commitments of this scale as part of a broader Climate Change Transition Plan that seeks to effectively align the fund’s actions and investment portfolio with the goals of the Paris Agreement.

“Our Climate Change Transition Plan is set to be one of the most comprehensive of its kind undertaken by a superannuation fund, mapping out how we’re going to manage climate risk, align our actions to a below-two-degrees world and support the transition to a low-carbon economy,” CEO Debby Blakey said.

“Climate change presents a financial risk to the HESTA investment portfolio and the world in which our members will retire. An urgent response is required and the actions within the Climate Change Transition Plan have been thoughtfully and carefully designed to provide an effective and tangible response.”

“This is an exciting piece of work that reaffirms our ongoing commitment to leadership in responsible investment and can help protect and enhance the long-term performance of our members’ investments, while driving meaningful change and contributing to a healthier planet and society.”

Rolling out elements of the Climate Change Transition Plan, HESTA said it will:

• introduce carbon reduction targets for the HESTA investment portfolio to manage key financial risks while seeking further investment in opportunities arising from the low-carbon transition;
• pursue real-world economy change through engaging with material holdings and managers to address medium-term transition risks and opportunities; and
• align HESTA’s investment portfolio with the aim of the Paris Agreement to be net zero by 2050.

About the author

Cameron is a journalist for Momentum Media's nestegg and Smart Property Investment. He enjoys giving Aussies practical financial tips and tricks to help grow their wealth and achieve financial independence. As a self-confessed finance nerd, Cameron enjoys chatting with industry experts and commentators to leverage their insights to grow your portfolio.

About the author

Cameron is a journalist for Momentum Media's nestegg and Smart Property Investment. He enjoys giving Aussies practical financial tips and tricks to help grow their wealth and achieve financial independence. As a self-confessed finance nerd, Cameron enjoys chatting with industry experts and commentators to leverage their insights to grow your portfolio.

Cameron is a journalist for Momentum Media's nestegg and Smart Property Investment. He enjoys giving Aussies practical financial tips and tricks to help grow their wealth and achieve financial independence. As a self-confessed finance nerd, Cameron enjoys chatting with industry experts and commentators to leverage their insights to grow your portfolio.

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