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Anne-Maree O'Connor, Head of Responsible Investment

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Climate change has been a key focus for us for many years.

We’ve always approached climate change from an investment perspective – seeking to understand and mitigate the risks it presents, and to identify the investment opportunities it is creating.

On both counts, climate change is one of the most significant intergenerational risks and opportunities that we face as a global investor.

Because of this we aim to lower the Fund’s exposure to investments that are most at risk from the transition to a low-carbon world and increase our exposure to investments that will contribute to this transition.

We do this through our climate change strategy, which has four core elements:

• to reduce the Fund’s exposure to companies with fossil fuel reserves and high emissions intensities
• analyse climate change effects as part of our investment decision-making process
• engage with companies we own to encourage them to manage climate risk, and to
• search for new investment opportunities which stand to benefit from dealing with climate change.

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• Reduce
• Analyse
• Engage
• Search

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Having successfully applied this strategy over a number of years, we are confident that we can have a positive impact on climate outcomes whilst benefiting the portfolio’s investment returns.  

We have recently signed on to the Paris Aligned Investment Initiative’s Net Zero Asset Owners Commitment.

To play our part in delivering the net zero transition, we will:

• set and deliver on ambitious targets that are aligned with a net zero pathway
• use our voice and influence with companies, fund managers and policy makers to encourage them to set net zero targets as investors cannot achieve this in isolation, and
• look for opportunities that allow us to apply our long-term investment capital at scale to support the transition, including in sectors such as energy, transport, infrastructure and real estate.

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• Set and deliver on ambitious targets
• Use our voice and influence
• Look for opportunities

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While there is much more to do, and our focus on climate change will continue for decades, we have already made significant carbon cuts in portfolio emissions, and the Fund no longer has a material exposure to fossil fuel reserves.

Compared to the market average, our fund is low carbon, well on track to achieving our goal of being net zero by 2050 – and continues to achieve excellent financial returns.

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Logo of NZ Super Fund, Te Kaitiaki Tahua Penihana Kaumātua o Aotearoa