TCORP TO IMPLEMENT NET ZERO BY 2050 STRATEGY

An independent review of the NSW Government’s financial investments has found the State is on the right track in incorporating environmental, social and governance (ESG) considerations across all its investments.

NSW Treasurer Matt Kean said the NSW Government accepted all the review’s recommendations and has already begun work with NSW Treasury Corporation (TCorp) on implementing them.

“As the world’s largest and most successful financial institutions have long since understood, climate risk is financial risk,” Mr Kean said.

“With investors, lenders and ratings agencies increasingly looking at the State’s ESG credentials, there has never been a more important time to ensure TCorp’s investments are insulated from ESG-related risks and pressures.

“In 2016, the NSW Liberal and Nationals Government was one of the first jurisdictions in the world to set a target of net zero by 2050 and we are now on track to reduce emissions by 70 per cent by 2035.

“We’re well placed to lead the way in ESG investing, setting an example for both the public and private sectors, while securing the State’s long term financial prosperity.

“The NSW Government is committed to ensuring public money is invested in a way that supports the Government’s long term economic plan by achieving sustainable financial returns over the long-run.”

The review’s priority recommendations include:

 Developing and implementing a net-zero strategy across all of TCorp’s portfolios to align with the NSW Government’s 2050 net-zero emissions target

 A comprehensive report on investment stewardship published by TCorp each year

 Greater dialogue between the Government and TCorp to promote alignment on TCorp’s approach to ESG

“We will be tasking TCorp with implementing a net-zero strategy across all the State’s investment funds that it manages,” Mr Kean said.

“We will also work with TCorp to ensure it has the necessary guidance when it comes to the Government’s expectations regarding ESG issues.

Pru Bennett, a highly regarded advisor on responsible investment, led the review into current stewardship practices of investment funds that TCorp manages on behalf of the Government.

“There are no critical deficiencies in TCorp’s approach to managing the State’s funds from an ESG perspective,” Ms Bennett said.

“TCorp is on the right track in its approach to incorporating environmental, social and governance considerations across all of its investments.

“ESG is dynamic and constantly evolving. An intentional culture of continual improvement on investment stewardship, together with more transparency around TCorp’s investment stewardship activities will help ensure the State’s investment funds are managed well into the future.”