Our climate change commitment
Last year was one of the hottest years on record. It had the highest number of consecutive days over 40 degrees in Australia. And the bushfire season last summer was the worst we’ve ever experienced.
Scientific evidence shows that the physical risks of climate change will significantly impact the way we live. The impacts of climate change are happening today. It is no longer a future event. It is a shared challenge that needs to be addressed by government, businesses and individuals.
For Challenger, climate change isn’t just an investment consideration. It is also fundamental to our vision of providing financial security for retirement.
Research shows that older Australians will be hardest hit by the physical impacts of climate change. With reduced mobility and vulnerability to infectious disease, older Australians will be disproportionately impacted.
The journey to a low carbon economy has begun. While there are risks involved in the transition, there are significant opportunities too. A successful transition to a low-carbon economy will not only help the planet, but will also alleviate the physical impacts of climate change.
Putting words into action
In December 2015, the world committed to keeping temperature rises well below 2 degrees, compared to pre-industrial levels, in signing the Paris Agreement. Challenger is committed to achieving the goals of this agreement and recognise the potential financial impact on our business if we don’t.
We are at the beginning of the journey. Partnering with AECOM, a leading climate resilience consultancy, we assessed our current and potential climate-related risks. We’re now developing effective mitigation steps to address them. You can read about this work in our 2020 Sustainability Report.
Joining a growing number of Australian businesses, we published our first climate change statement last year. It includes the principles that guide our decisions, the actions we’re taking to mitigate climate-related risks and the opportunities that arise from a transition to a low-carbon economy.
Next, we’re taking a deeper look into specific asset classes to put the right measures in place that will create resiliency for the future.
Addressing climate change needs everyone to contribute. At Challenger, we’re proud to be doing our part.