By Paulina Duran
SYDNEY (Reuters) – Australia’s IFM Investors will end its exposure to thermal coal by 2030 due to climate change risks, the A$170 billion ($126 billion) investment manager said on Tuesday, as it works to have net zero greenhouse gas emissions from its portfolio by 2050.
The pension fund-owned manager joins a growing group of investors worldwide cutting coal exposures due to global warming concerns, even as Australia defends its dependence on the dirty fuel, defying international calls to drastically cut emissions.
Melbourne-based IFM, which manages funds for Australian pension funds, will restrict investments in assets that derive material revenue from thermal coal and will target “zero coal exposure” from its portfolio by 2030, it said in a statement.
The move is part of its strategy to target net zero greenhouse gas emissions by 2050 across its investments. It’s commitment includes only direct reductions and not so-called scope 3 emissions, it said.
The United Nations on Sunday called for Australia, one of the world’s largest carbon emitters per capita, to increase its efforts to phase out coal or else climate change would dramatically damage the country’s economy.
On Monday, Australia’s government said coal will continue to be a major contributor to its economy “well beyond 2030” given growth in global demand.
($1 = 1.3452 Australian dollars)
(Reporting by Paulina Duran in Sydney; Editing by Michael Perry)
