Australia’s second biggest superannuation fund, Australian Retirement Trust, has announced it will cease investing in most thermal coal companies from July as part of a plan to hit net zero emissions across its portfolio by 2050.
According to Reuters, Australian Retirement Trust’s new rules exclude investment in any company that generates more than 10% of its revenue from the mining and sale of thermal coal.
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“As a global investor, Australian Retirement Trust is committed to achieving a net zero greenhouse gas emissions investment portfolio by 2050,” the company said in a statement.
“Australian Retirement Trust applies exclusions in limited circumstances as part of its sustainable investment approach in accordance with members’ best financial interest.”
The new rule does not bar thermal coal investments made indirectly via money invested with other fund managers. It also does not apply to metallurgical coal, used in steel making.
The move was welcomed by climate and environment advocacy groups, who said Australian Retirement Trust was the largest Australian pension fund to halt thermal coal investments.
“It’s a tribute to the thousands of members who have demanded greater climate action from the fund,” Market Forces superannuation funds campaigner Brett Morgan said.
The news comes as two of Australia’s biggest superannuation funds vetoed Woodside Energy’s climate plan at its AGM last week.
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Aware Super said Woodside must address climate concerns in a way that protected shareholder value.
Australia’s largest superannuation fund, AustralianSuper, also voted against the plan, citing concerns over how Woodside would reach net zero emissions.
