May 02, 2016 - 7:00am
The 2015-16 Global Climate Index by the Asset Owners Disclosure Project (AODP), a sister organisation to The Climate Institute, demonstrates that big investors are increasingly beginning to take climate risk seriously. There has been an increase of AAA ranked funds – those considered most successful at managing climate change risk in their portfolios - to 12 from 9 last year. The category with the biggest growth was the C to CCC-rated group, which almost doubled to 41 from 27.
The 12 AAA-rated asset owners included three Australian superannuation funds, up from two last year; giving Australia the biggest number of top-rated asset owners. In Australia, the “learners” C to CCC category also increased from one to five.
Australian funds perform relatively well in aggregate, ranking third only to Sweden and Norway on mean average ratings, but remain a mixed bag.
Local Government Super, ranked second worldwide, was joined in the Australian AAA category by Australian Super and First State Super (which rose from an ‘A’ rating in 2015).
At the other end of the scale, IOOF Pension Scheme was the only Australian fund to receive an X rating. Four Australian funds moved from D last year to BBB this year.
For more download a PDF of the Factsheet below.