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Aware Super leads on climate action: IGCC

Aware Super's commitment to tackling climate change has been showcased in a global initiative that aims to accelerate the transition a net zero world.

The $150 billion superannuation fund was lauded for leading the industry, thanks to its Climate Change Portfolio Transition Plan (CCPTP).

The initiative is an example of how an asset owner is managing climate change risk and transitioning its portfolio to a low-carbon economy while delivering long term, sustainable returns.

This is according to the Investor Group on Climate Change, which placed Aware in a list of global asset owners leading the charge when it comes to solving the climate crisis.

Aware incorporates portfolio-wide short, medium and long-term targets, advocates for a just transition, stronger policy and regulatory support, and outlines an effective long-term engagement program to reach net zero by 2050 and aligning to a 1.5 degree scenario, IGCC said.

The CCPT, an 80-page plan, sets out the science and road map on how the fund can transition and make net zero goals a reality with the backing of the trustee board.

"Aware Super knew to successfully implement its climate strategy, buy in at all levels of management and team was vital - and the extensive research produced to back the plan meant Aware Super was able to secure the trust of the Aware Super board, Investment Committee and importantly, the investment team, who have a direct impact on achieving Aware Super's climate action targets," IGCC said.

Asset owners' best practices were highlighted in IGCC's newly launched Investor Agenda.

The list includes UniSuper and IFM Investors. Among the global investors are Allianz, CalSTRS, Mirae Asset Global Investment, and Sumitomo Mitsui Trust Asset Management.

The majority of the superannuation sector is not taking its environment, social and governance responsibilities seriously, research shows.

Rainmaker found that the "power hitters" in the ESG space include Australian Ethical, Cbus, AustralianSuper, Aware Super, HESTA, Active Super and UniSuper.

Yet too many are not transparent with their ESG initiatives or are waiting for the regulator to step in.

Read more: Aware SuperIGCCCCPTUniSuperAllianzAustralian EthicalAustralianSuperCalSTRSCbusHESTAMirae Asset Global InvestmentSumitomo Mitsui Trust Asset Management