A $57bn Australian pension fund has settled a court case with a 25-year-old member who accused it of failing to act in his best interests by not properly considering climate risks posed to investments. The settlement, which was reached a week before the trial was due to start, requires the fund to ensure its actions are consistent with “net zero carbon footprint” by 2050.
 
The fund acknowledged that climate change could lead to catastrophic economic and social consequences and was an important concern of its members. The settlement requires the fund to disclose its full portfolio holdings, conduct climate scenario analysis to inform its investment strategy and advocate for the companies it invests in to comply with the goals of the Paris agreement. The case was described as the first legal test of whether the requirement that super funds must keep members informed of risks applied to climate-related risks.
 
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