IFM Investors has committed to reducing greenhouse gas emissions across its asset classes, targeting net zero by 2050.
IFM said the move is an extension of action already being taken by its infrastructure assets to reduce emissions through investment in renewable energy and other carbon reduction initiatives.
IFM said it has established a multi-disciplinary taskforce to support the commitment, spearheaded by its investment team.
It will establish clear frameworks and policies to guide and support sustainable decision-making processes that are designed to mitigate climate change risk exposure and help meet the net zero by 2050 target.
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The taskforce will consider the following establishing emission reduction commitments, developing policies for net-zero transition plans for new and existing unlisted assets and enhancing investment decision-making and governance frameworks when considering climate change risks and alignment with emission reduction objectives.
In addition, it will consider identifying investment opportunities in decarbonisation and climate-resilient assets, and ensuring that IFM continues to develop capabilities to capture these opportunities and the evolution of technologies and better understanding likely transition pathways, especially in the energy mix.
IFM chief executive David Neal said the firm was committed to reducing the carbon impact of its investments.
"This is a natural step and an important one if IFM is to continue delivering on its purpose to protect and grow the long-term retirement savings of working people," Neal said.
"The investment horizon of IFM and our investors is often measured in decades, not years, and it's vital that we actively manage the risks posed by climate change."
He said the actions taken by IFM will help ensure the firm continues to deliver long-term risk-adjusted returns for its investors and their members and beneficiaries.
IFM is implementing strategies to reduce carbon emissions across its infrastructure portfolio companies by putting in place targets at Australian assets to reduce emissions by 200,000 tonnes by 2030, and developing targets for global assets.
In addition it said it is investing in renewable energy projects to help power assets and establishing Nala Renewables, the joint venture with Trafigura, which will invest in solar, wind and power storage projects.