HESTA boss calls out ASX 300 companies without net-zero targets

Here's which ASX 300 shares the $64 million super fund wants to see set 2050 net-zero targets…

| More on:
A girl holding a globe shouts into a green megaphone about climate change.

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The leader of a $64 billion super fund says the fund is pushing 11 S&P/ASX 300 Index (ASX: XKO) companies to clean up their act on carbon emissions.

Speaking to the Smart Energy Council's Global Race to Zero Summit last night, HESTA chief executive Debby Blakey said the fund is worried Australia and Australian companies are lagging behind the rest of the world in the transition to decarbonisation.

She said: "The cost of lagging decarbonisation, and then a sudden, disorderly transition, really does endanger the financial future, and the quality of life, of all Australians…"

And to avoid such a transition, HESTA asserts reaching net-zero by 2050 is necessary to protect Australia's economic position.

Blakey said: "To achieve carbon reduction in our portfolio means we must actively engage with the companies we own. Just 11 of the ASX 300 companies make up 76% of emissions, and these companies are the focus of our engagement."

Let's take a look at which ASX 300 companies HESTA wants to see reach net-zero.

The most carbon-polluting ASX 300 companies

Here are the 11 companies responsible for 76% of the ASX 300's carbon emissions, according to HESTA's Climate Change Report.

It likely comes as no surprise that Australia's biggest carbon polluter topped the list.

AGL Energy Limited (ASX: AGL) took out the top spot. Fellow energy producers Santos Ltd (ASX: STO), Woodside Petroleum Limited (ASX: WPL), and Origin Energy Ltd (ASX: ORG) also made the list.

Also overrepresented were Iron ore producers. Rio Tinto Limited (ASX: RIO), South32 Ltd (ASX: S32), and BHP Group Ltd (ASX: BHP) are among the top emitters.

Additionally, Australia's largest airline, Qantas Airways Limited (ASX: QAN), also made the list.

However, 3 companies among the ASX 300's top polluters don't have concrete plans to achieve net-zero emissions by 2050. They are Incitec Pivot Ltd (ASX: IPL), BlueScope Steel Limited (ASX: BSL), and Alumina Limited (ASX: AWC).

In its latest sustainability report, Incitec stated it's looking to examine pathways towards zero operational emissions by 2050.

BlueScope also wants to achieve net-zero emissions by 2050. Although, it believes new technology needs to be created before it can do so.

Interested readers can find Alumina's climate change position statement here.

HESTA's stance on Australia's climate targets

Blakey also stated Australian policies are restricting the capital HESTA is willing to invest into the nation. She said:

HESTA would have more appetite to invest more in renewable infrastructure in Australia if we can overcome existing barriers to investment…

Current barriers to domestic investment in renewables mean that for every $1 that we've been able to commit to Australian assets in this area, we've actually been able to invest $3 overseas.

Blakey also pointed to findings by the Investor Group on Climate Change (IGCC). As the Motley Fool Australia reported, IGCC recently found Australia's lacking emissions-reduction targets could be causing it to miss out on billions of dollars.

Should you invest $1,000 in Alumina right now?

Before you buy Alumina shares, consider this:

Motley Fool investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now... and Alumina wasn't one of them.

The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

And right now, Scott thinks there are 5 stocks that may be better buys...

See The 5 Stocks *Returns as of 30 April 2025

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Share Market News

A beautiful ocean vista is shown with a woman whose back is to the camera holding her arms up in triumph as she stands at the top of a rock feeling thrilled that ASX 200 shares are reaching multi-year high prices today
Share Gainers

Here are the top 10 ASX 200 shares today

ASX investors were in the mood for buying this Tuesday.

Read more »

Woman checking out new iPads.
Consumer Staples & Discretionary Shares

Macquarie reveals top ASX stock picks in the consumer sectors

The top broker has revealed its favourite shares in the consumer discretionary and consumer staples sectors.

Read more »

A young woman holds an open book over her head with a round mouthed expression as if to say oops as she looks at her computer screen in a home office setting with a plant on the desk and shelves of books in the background.
Share Market News

Why ANZ, Coles, Lynas, and Northern Star shares are falling today

These shares are falling despite the market charging higher. But why?

Read more »

I young woman takes a bite out of a burrito n the street outside a Mexican fast-food establishment.
Opinions

Time to cash in your gains? Brokers say sell on these 3 ASX 200 shares

Experts say these stocks are overvalued and it may be time to take some profits off the table.

Read more »

Miner looking at a tablet.
Share Gainers

Up 93% since April should I still buy Boss Energy shares now?

Boss Energy shares, the most shorted on the ASX, have almost doubled in value in one month. Now what?

Read more »

Five young people sit in a row having fun and interacting with their mobile phones.
Share Gainers

Why BHP, Catapult, Life360, and Ridley shares are charging higher today

These shares are having a strong session. But why?

Read more »

Man pointing at a blue rising share price graph.
Technology Shares

Why are WiseTech shares up 7% today?

Investors can't get enough of WiseTech stock right now.

Read more »

Image from either construction, mining or the oil industry of a friendly worker.
Resources Shares

Broker names 10 ASX mining stocks set to outperform following Macquarie Conference

Twenty-two ASX mining companies presented at the annual Macquarie Conference last week.

Read more »