The fund manager has established a taskforce to support the commitment aligning with the Paris Agreement, spearheaded by its investment team.
The taskforce will be responsible for setting frameworks and policies to mitigate the group’s climate risk exposure and meet the net-zero goal by 2050.
IFM has said it will develop policies for net-zero transition plans for new and existing unlisted assets, enhance its investment decision-making and governance frameworks when considering climate risks and investigate transition pathways, among other changes.
IFM Investors chief executive David Neal said it was “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”.
“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,” Mr Neal said.
“The actions we take will help ensure we continue to deliver long-term risk-adjusted returns for our investors and their members and beneficiaries.”
The company reported it has already implemented carbon reduction strategies across its infrastructure portfolio companies, including targets for its Australian assets to reduce emissions by 200,000 tonnes by 2030, as it develops targets for global assets.
It has also established Nala Renewables, a joint venture with Trafigura, which will invest in solar, wind and power storage projects worldwide.
Sarah Simpkins
Sarah Simpkins is a journalist at Momentum Media, reporting primarily on banking, financial services and wealth.
Prior to joining the team in 2018, Sarah worked in trade media and produced stories for a current affairs program on community radio.
You can contact her on [email protected].
