Australian and New Zealand ESG Update

Mercer commits to net-zero by 2050

Mercer Australia has joined the push for a zero carbon emissions future by committing to a net-zero emissions goal by 2050 for Australian funds and the Mercer-managed investment options within Mercer Super - a total of $36.4 billion. Portfolio carbon emissions will need to be reduced by 45 per cent from 2020 baseline levels by 2030. The commitment aligns with the 1.5 degree Celsius limit on global temperature increases and the Paris Agreement.

NGS Super strengthens ESG

Exclusions in NGS Super have been strengthened in its socially responsible investment option, with changes taking effect from 1 April 2021. The exclusions include fossil fuels, nuclear power and uranium, exploration of human rights, controversial weapons and armaments, predatory lending, gambling, pornography and adult entertainment, animal cruelty, alcohol production and distribution and tobacco production.

EISS Super implement’s State Street’s ESG Risk Analytics for assets

EISS Super is now using customised environmental, social and governance (ESG) performance and risk management analytics provided by State Street Corporation’s ESG Risk Analytics Solution, which manages carbon emissions of assets.

EISS can now see how much carbon (in tonnes) each company it has funds in is producing and modulate the allocation in each company for its unique risk profile. Metrics include water and waste management, labour practices, employee diversity and inclusion, business model resilience and business ethics.