– The Australian Retirement Trust will cease most investments in thermal coal companies from July 2024 to reach net-zero emissions by 2050.
– The fund will exclude companies with more than 10% of their revenue from thermal coal mining and sales, as part of its sustainable investment approach.
– This decision aligns with global efforts to transition away from fossil fuels, following divestment trends by European pension funds and banks.
The Australian Retirement Trust, the country’s second-largest pension fund, has announced plans to divest from thermal coal companies with 10% or more of their revenue from coal by July 2024. This decision is in line with the fund’s goal of achieving net-zero emissions by 2050 across its entire portfolio. The new criteria exclude companies with significant revenue from thermal coal mining and sales, as well as pooled derivative products with indirect exposure to such companies.
Thermal coal is now on the list of excluded investments, along with tobacco, cluster munitions, and landmines. The move has been praised by climate activists, who see this step as significant in the fight against climate change. The fund stated that it is committed to sustainable investment practices that align with the best financial interests of its members. European pension funds and banks have already started divesting from major oil and gas companies and reducing financing for fossil fuel projects.
These actions are consistent with the global trend of transitioning away from fossil fuels, as seen in agreements like the one reached at the recent COP28 summit to phase down coal power use. The Australian Retirement Trust’s decision reflects a broader commitment to a sustainable future and aligns with international efforts to address climate change.