When it comes to your super, climate change is a big deal. The effects of climate change impact economies around the world, which affects their markets and, in turn, your super.
So, the team responsible for your Virgin Money Super’s performance, Mercer, has committed to a ‘net zero’ carbon emissions target across their $34.6 billion investment portfolio, by 2050. Because putting the brakes on carbon emissions helps minimise the impact of climate change.
Net zero means reducing carbon emissions where possible, or balancing out any emissions that can’t be avoided by absorbing the same amount of carbon from the atmosphere. This is often achieved by planting trees or by capture and storage.
The right thing for the environment and for you
The net zero pledge is in line with the Paris Agreement; an international treaty to limit global warming to 1.5 Celsius above pre-industrial levels.
Mercer Chief Investment Officer, Kylie Willment, says that a global commitment to a lower carbon future would result in many investment opportunities.
And that means the planet isn’t the only winner out of a net zero target.
“Investing for a 1.5-degree scenario is in the best financial interests of our super customers,” Ms Willment says.
Working with industry to achieve net zero
To achieve net zero emissions we need to transition away from high-carbon investments, such as fossil fuel based energy and utilities, and toward renewable investments such as wind and solar. This transition is occurring globally.
It also means influencing companies to operate in ways that use less energy - from improving energy efficiency or industrial processes to implementing transport alternatives and designing products differently.
Our many years of research helps us understand where emissions are currently generated and what capacity companies have to transition – both in the wider economy and our own investments.
Under our Climate Transition Plan, we’re working closely with investment managers to manage emissions reductions and climate solutions investment.
Delivering sustainable investments, today
While working towards a better future, we’re already committed to sustainable investments. All Virgin Money Super investment decisions are based on sustainable environmental, social and governance principles. And there are strong policies that support sustainable investing, guided by international frameworks. Check on more info in the Product Guide or Mercer’s Sustainable Investment Policy.
Have any questions about your Super? Give us a call on 1300 652 770.