- Australian Retirement Trust will cease investments in most thermal coal companies starting in July.
- New rules exclude firms with over 10% revenue from thermal coal mining.
On Thursday, Australian Retirement Trust, a pension fund with assets worth A$280 billion ($183 billion), announced it would stop investing in most thermal coal companies from July. This aligns with its goal to achieve net zero emissions by 2050.
Under new rules, the fund will exclude companies making over 10% of revenue from thermal coal mining. This reflects the fund’s commitment to sustainable investing and members’ best financial interests.
Thermal coal is among other prohibited investments, like tobacco and cluster munitions. However, the rules exempt indirect investments through other fund managers and metallurgical coal for steel making.
Climate activists praised the move, noting it makes Australian Retirement Trust the largest pension fund in Australia to divest from thermal coal.
Brett Morgan from Market Forces credited thousands of members advocating for more decisive climate action within the fund.
While significant, the change won’t heavily impact the fund’s local portfolio. As of December filings, major Australian coal miners like New Hope and Whitehaven Coal were already absent from its central fund.
($1 = 1.5286 Australian dollars)