Australia’s No. 2 Pension Fund to Curb Thermal Coal Investments
Written by Emily J. Thompson, Senior Investment Analyst
Updated: May 02 2024
0mins
Source: Bloomberg
- Australian Retirement Trust's Decision: The country's second-largest pension fund plans to cease direct investments in most thermal coal companies as part of its goal to achieve net zero across its portfolio.
- Exclusion Criteria: The A$280 billion fund will exclude listed equities from July 1 if companies generate over 10% of gross revenue from mining and selling thermal coal.
- Scope of Exclusion: The exclusion applies to direct investments in Australian and international shares asset classes but not to indexes or derivatives with thermal coal exposure.
- Industry Trends: Other large funds in Australia's competitive pension industry have made similar moves, responding to pressure to align with net-zero commitments and cater to environmentally conscious members.
- Environmental Impact: Funds like Aware Super and others are also implementing exclusions based on revenue percentages from thermal coal mining to address environmental concerns and divest from polluting companies.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
