Vision Super dumps ‘carbon-intensive’ businesses

The Australian super fund has shifted three investments in the utility, materials and aviation sectors to low-carbon options.

Vision Super has replaced three ‘carbon-intensive’ companies from its asset portfolio with three low-carbon investments. 

Shares in Korean utility Korea South East Power, construction company Holcim Finance Australia and Qantas Airways have been removed from Vision Super’s portfolio, which is managed by French firm Amundi. These three companies used to account for 80 percent of the portfolio’s total carbon footprint, and the move will allow for a 75 percent reduction in its emissions, the super fund noted in a statement. 

Vision Super has now replaced the holdings with stakes in three low-carbon companies from the same sector, it said. The super fund didn’t specify which companies were chosen. It hadn’t responded to queries by press time.
The move is leaving Vision Super’s credit risk unchanged, the fund said. 

With A$7.5 billion ($5.68 billion; €5.1 billion) under management, Vision Super has been working on reducing its carbon footprint since October last year with the introduction of new low-carbon benchmarks to its share investments. 

It has moved its international shares index portfolio to the global MSCI Low Carbon Index, which invests in overseas companies that have a 70 percent lower carbon exposure than the rest of the market. It has also moved its Australian shares index portfolio to the IFM Low Carbon Australian Shares Fund. 

The fund, which owns and operates the 12MW Wonthaggi wind farm in Victoria, said it is keen to invest in more renewable energy generation. It is a signatory of the Paris Pledge for Action, which encourages investors to strive for a 50 percent carbon emission reduction by 2030, with a goal of being carbon neutral by 2050. 

Other Australian super funds which have signed the Paris Pledge include AustralianSuper, Cbus Super, Catholic Super and First State Super.