Climate risk assessment – Top 30 Australian superannuation funds (pension funds)

Unlike traditional investment risks, climate change-related risks are characterized by fundamental uncertainty and a lack of historical data. Australian superannuation funds, as key asset owners, recognize that climate change poses a significant financial threat.

Ortec Finance’s ‘Climate risk assessment – Top 30 Australian superannuation funds’ compares the climate risk exposure and resilience of the Top 30 Australian superannuation funds by quantifying the annual, cumulative and cumulative annualized impacts of their portfolio at an asset class level under the 2024 Ortec Finance Climate Scenarios.

Discover how and why our analysis shows that:

• Physical risks are expected to have the greatest negative impact on Australian superannuation funds’ investment portfolios in the long-term.
• The greatest harm to an Australian superannuation fund’s investment portfolio is likely to arise from either: 1) short-term drastic and uncoordinated policy changes or 2) long-term failure to undertake the low-carbon transition.
• Australia superannuation funds are particularly vulnerable to sudden or disruptive transition measures due to their significant allocation to equities, whose returns are highly susceptible to short-term transition risks.
• Australian superannuation funds have sizable exposure long-term physical risks due to its exposure to real estate and alternative investments such as private equity, and infrastructure.
  ​

Download the report – Climate risk assessment – Top 30 Australian superannuation funds