ANZ Investments recognises that climate change is an increasingly important issue for society. We also recognise that climate change poses a significant risk to investment returns. To ensure our portfolios are both resilient to the risks of climate change and positioned to identify the opportunities that arise from the transition to a lower-carbon world we have developed a targeted climate change framework.
Our framework incorporates analysis of climate change risks and opportunities into the way we research, select and manage investments. To do this we measure exposure to key risk factors, for instance carbon emissions and fossil fuel reserves, or a company’s strategy and competence in addressing any material risks.
An important part of our climate change framework is to actively reduce exposure to companies and/or industries with high carbon footprints and business models that are not sustainable in the long term. For example we may exclude a company from our portfolio, engage with them to encourage change or reduce our investment.