Australian health sector superannuation fund HESTA has cut its portfolio emissions by a third from a 2020 baseline, eight years ahead of schedule. This is according to HESTA’s second annual climate report, which details its approach to managing climate-related risks and the progress of the fund’s AUS$72 billion (US$48.3 billion) climate transition plan, which initially outlined the 33% reduction in emissions by 2030 target. HESTA decided to strengthen its commitment from 33% to a 50% reduction in Scope 1 and 2 portfolio emissions by 2030 in September last year, due to updated scientific research on climate change and the Australian government’s increased commitment. “Climate change presents a complex systemic risk for investors to manage – there’s no silver bullet, with long-term investors needing to use many approaches to position their portfolios for a low-carbon future,” said HESTA CEO Debby Blakey, adding that the fund needs to “continually adjust and advance our approach to the management of climate-related risks as circumstances change, […] now is the time to get ahead of the carbon tsunami that will hit if we don’t start dealing with net zero this decade”. HESTA is further committed to investing 10% of its investment portfolio in climate solutions, such as renewable energy and sustainable property, by the end of this decade. “Throughout 2023 and beyond we’re continuing to focus on opportunities to invest in developing innovative technologies and businesses at the forefront of decarbonisation,” Blakey added.