HESTA has pledged to support global climate change initative, the Transition Pathway Initiative (TPI).
The TPI is a global asset owner-led initiative that assesses companies’ preparedness to transition to a low-carbon economy.
It provided tools to help investors understand how companies were managing climate change and the risks it posed to their businesses.
HESTA chief executive, Debby Blakey, said the TPI would further inform the investment processes and decisions of large asset owners and provided additional insights to support active ownership activities.
“The finance sector has a vital role to play in supporting the transition to a low-carbon future and the TPI can increase the effectiveness of asset owners’ long-term stewardship activities,” she said.
“Championing a sustainable, low-carbon economy is essential to creating long-term value for our members and supporting a healthier planet and society.”
HESTA is the first Australian investor to pledge and is one of 60 investors globally that represent over $18 trillion in combined assets under management and advice.
HESTA would also join the TPI steering committee.