On Thursday, the Australian Retirement Trust announced that it will cease investing in most thermal coal companies starting in July as part of its strategy to achieve net zero emissions across its portfolio by 2050.
The fund, valued at A$280 billion ($183 billion), has implemented new guidelines to exclude companies that generate over 10% of their revenue from mining and selling thermal coal, one of the most polluting energy sources.
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“Australian Retirement Trust applies exclusions in limited circumstances as part of its sustainable investment approach in accordance with members’ best financial interest.”
“As a global investor, Australian Retirement Trust is committed to achieving a net zero greenhouse gas emissions investment portfolio by 2050,” it said in a statement.
The Australian Retirement Trust’s new policy, announced on Thursday, will halt direct investments in most thermal coal companies from July onwards in pursuit of net zero emissions by 2050.
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However, the rule does not prevent indirect thermal coal investments through other fund managers nor applies to metallurgical coal used in steel production.
Climate activists praised the decision, noting that the Australian Retirement Trust is the largest Australian pension fund to cease direct thermal coal investments.