Australian pension fund NGS Super has divested from oil and gas firms to reach net-zero carbon emissions in its portfolio by 2030, as reported by Reuters on August 4. The assets sold were valued at a total of AUD191m (USD133m), including AUD75m (USD52m) in shares in Woodside Energy Group [WDS:AU] and AUD50m (USD35m) in Santos [STO:AU]. Previously, NGS Super embraced ESG investing by ruling out enterprises with more than 30% of income from the mining, distribution, or combustion of thermal coal for electricity generation.

NGS Super is an industry pension fund that manages AUD13bn (USD9.1bn) in assets for teachers in non-government education and community groups in Australia. Another Australian industry pension fund, Host-Plus Pty, is now under increasing pressure to go green: this AUD75bn (USD55bn) pension fund has committed to achieving carbon neutrality in its portfolio by 2050 but has not provided any details on short-term targets or specific strategies, such as how the fund would cut carbon emissions in its portfolios. According to Host-Plus’s annual report, overall portfolio carbon emissions for FY21 were about 152 tons of CO₂ for every AUD1m (USD0.7m) invested. In recent years, larger pensions throughout the world have steadily incorporated ESG investments into their policies. According to Pension Market in Focus 2020, global pension investments have surpassed USD50tr, with 89% of European pension institutions saying that they would include ESG elements in their investments.

Sources:

https://www.reuters.com/business/sustainable-business/australian-pension-fund-dumps-133-mln-oil-gas-stakes-carbon-neutral-push-2022-08-04/

https://finance.sina.com.cn/stock/hkstock/hkstocknews/2022-03-15/doc-imcwipih8588806.shtml

http://www.cbimc.cn/content/2022-01/04/content_455263.html