As part of its commitment to hit Australia’s target of net zero by 2050, IFM Investors has set an emissions reduction target of more than one million metric tons of CO2e (a common unit for greenhouse gases) for its infrastructure assets by 2030.
This will reflect an emissions reductions target of 40 per cent of IFM's existing infrastructure portfolio from 2019 levels.
The Melbourne-based investment management company will also restrict investments in any assets that derive material amounts of revenue from thermal coal, targeting zero coal exposure for its existing portfolio by 2030.
“To continue delivering on our purpose, which is to protect and grow the long-term retirement savings of working people, it’s vital that we have a plan to mitigate the risks of climate change,” says IFM Investors CEO David Neal.
“We’re confident that the measures we are putting in place for our infrastructure portfolios are real, achievable and, we believe, in the best interests of our investors, their members and beneficiaries.”
Essential infrastructure assets such as transport, utilities, and energy will continue to see investment and will receive the company’s focus in transitioning to ensure that operating in a net-zero world is possible.
However, Australia has faced criticism for its target of reaching net-zero by 2050, with former UN Secretary-General Ban Ki-Moon and US deputy climate chief Jonathan Pershing saying a minimum 50 per cent cut is needed by 2030 in order to avoid catastrophic climate change.
New acquisitions made by IFM Investors will consider whether the decisions are aligned with its 2050 target, with asset management processes taking into account climate change transition and physical risks.
The company states that further work is being undertaken on how non-infrastructure asset classes will meet its net-zero commitments, forming part of IFM’s overarching Climate Change Strategy – which will be released in the coming months.
“We are making infrastructure investments today that our investors expect to hold for the long term,” says IFM Investors global head of infrastructure Kyle Mangini.
“If these investments are to generate strong, long-term sustainable returns, we need to ensure that they continue to play an important role in society in a net-zero economy
“We look forward to continuing to work closely with our investee companies as we embrace the energy transition together.”
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