Australia’s No. 2 Pension Fund to Curb Thermal Coal Investments
Written by Emily J. Thompson, Senior Investment Analyst
Updated: May 02 2024
0mins
Should l Buy ?
Source: Bloomberg
- Australian Retirement Trust's Decision: The country's second-largest pension fund plans to cease direct investments in most thermal coal companies as part of its goal to achieve net zero across its portfolio.
- Exclusion Criteria: The A$280 billion fund will exclude listed equities from July 1 if companies generate over 10% of gross revenue from mining and selling thermal coal.
- Scope of Exclusion: The exclusion applies to direct investments in Australian and international shares asset classes but not to indexes or derivatives with thermal coal exposure.
- Industry Trends: Other large funds in Australia's competitive pension industry have made similar moves, responding to pressure to align with net-zero commitments and cater to environmentally conscious members.
- Environmental Impact: Funds like Aware Super and others are also implementing exclusions based on revenue percentages from thermal coal mining to address environmental concerns and divest from polluting companies.
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About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
