$94 Billion Fund Plans to Cut Australia Carbon Footprint by 10%

(Bloomberg) -- One of Australia’s biggest infrastructure investors has pledged to cut carbon emissions across its portfolio of airports, toll roads and electricity assets in the nation by about 10%, as the pensions industry steps up its commitment to tackling climate change.

IFM Investors Pty., which manages A$140 billion ($94 billion), will cut 200,000 tons of annual carbon emissions from its largest Australian assets by fiscal 2030, it said in a statement Monday.

The Melbourne-based firm, which is owned by 27 pension funds, intends to implement a similar program across it’s global portfolio and announce a set of targets by late next year, according to Chris Newton, IFM’s executive director for responsible investment. “We’re ready and willing to bite off the next part which is going to be a bigger ask and a harder ask,” he said in a phone interview.

The plan comes as the nation’s largest pension funds throw off their reputation as passive investors and pressure companies to curb emissions. It’s another instance of corporate Australia moving forward with climate initiatives in the absence of a coherent strategy from the government. The center-right coalition, which won a national election in May, has placed its energy policy emphasis on reducing power bills and refused to legislate any measures to penalize big greenhouse-gas polluters.

IFM will use more electric and low-emission vehicles at its airports and seaports, install LED lighting, develop energy efficient office space and increase the use of rooftop and large-scale solar energy. The planned curbs are the equivalent of removing almost 70,000 cars from the road, it said.

Click here for details of the reduction targets

--With assistance from James Thornhill.

To contact the reporter on this story: Matthew Burgess in Melbourne at mburgess46@bloomberg.net

To contact the editors responsible for this story: Edward Johnson at ejohnson28@bloomberg.net, Rebecca Jones

©2019 Bloomberg L.P.