As a leader in responsible investment, Morrison believes that carbon emissions by investee entities have the potential to adversely affect the financial performance of those investments over the long term, as well as contributing to the harmful global effects of climate change.
Morrison has committed to a climate positive ambition for its own organisation, applying best practices to minimise its consumption of natural resources and to reduce waste.
As manager of the Utilities Trust of Australia (“UTA”), Morrison & Co has now established several new decarbonisation goals for UTA, including a 50 per cent reduction in emissions intensity by 2030 and the achievement of Net Zero by 2050.
Gordon Hay, Executive Director at Morrison & Co, the UTA Portfolio Director, said, “It is essential that we commit to a more sustainable path to preserve the world’s natural ecosystem. Lack of action on climate change has the potential to adversely impact on the assets we manage for our clients. Reducing emissions intensity is fundamental to risk management for any organisation with a long-term investment horizon.
“The Fund aims to be recognised as a global leader in responsible infrastructure investment, as outlined in its Responsible Investment Strategy. A strong ESG focus is consistent with our investment objectives and our responsibilities to investors.”
The following decarbonisation goals have been established for the Fund:
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Net Zero by 2050. Reduce absolute scope 1 and 2 carbon emissions (net) of whole portfolio to zero by 2050.
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50% reduction in emissions intensity by 2030. Reduce the Fund’s scope 1 and 2 carbon emissions per dollar invested (NAV) by 50% by 2030 from a 2019 baseline.
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Investee entities to set Net Zero targets. use the Fund’s ownership influence and board representation to seek to have each of the Fund’s investee entities adopt carbon emissions reduction strategies on a basis that is consistent with achieving Net Zero by no later than 2050.
UTA’s updated Responsible Investment Strategy requires the fund to report in line with the Recommendations of the Taskforce for Climate-related Financial Disclosures (TCFD); prepare an annual report on the risk of modern slavery within the Fund’s supply chain; establish ESG targets including carbon emission reduction goals; and maintain an ESG Data Book for UTA unit holders and advisors.
The Fund will align its ESG disclosures with the UN’s Sustainable Development Goals, where feasible. It will also continue to raise its expectations of investee entities, including the quantification of financial and non-financial impacts of climate change; setting of carbon neutral targets by no later than 2050; and the establishment of effective ESG governance structures to support enhanced delivery and communication of ESG efforts and outcomes.
For more information about UTA, visit: https://www.uta.com.au/