Rest invests our members’ super with a view to achieve their best retirement outcomes. Our number one priority is to invest in assets that deliver strong long-term returns. However, if we can help positively influence the communities in which our members live and work as well, then that’s a great bonus. And investing in the energy transition presents a fantastic opportunity on both fronts.
Rest aims to delivers strong returns with responsible investment principles integrated into our investment decisions. We believe this can help grow our members’ super savings in a responsible way. For most of us, super is a very long-term investment. Over 80% of Rest’s approximately 2 million members are expected to retire after 2050, the year which Rest has an objective to achieve net zero emissions for the fund. This key demographic is just one of the many reasons why we believe it’s important for Rest to have exposure to the next generation of infrastructure assets that have the potential to deliver strong financial returns for our members over the medium to longer term.
It’s clear that addressing the energy transition and the pathway to net zero creates some great investment opportunities for our members. So, how big is the opportunity?
The transition to a lower-carbon economy is a huge and historic investment opportunity, requiring an estimated US$100 trillion globally to achieve net zero emissions by 2050. 1,2
Globally, clean energy investment is forecast to double by 2030 alone. Electricity transmission and distribution grids need to expand by around 2 million kilometres each year.3 From the early 2030s, investment will need to rise to around $US4.5 trillion every year, from the current levels of $US 1.8 trillion, to achieve a global pathway that keeps the 1.5°C goal in reach.1 This means that there’s a significant investment required, and a significant financial opportunity for our fund.
In Australia, more than AU$120 billion of spending is needed to finance new solar, wind, hydro, transmission and energy storage projects by 2030-31.3 It’s been estimated that a major wind farm needs to be built each month until the end of the decade to hit Australia’s renewable energy goals.2
As part of our commitment to achieving strong, long-term returns and objective to achieve net zero for the portfolio, Rest has been investing in the energy transition. Let’s showcase some of our investments in renewable energy so you can see how your super capital is working hard for you and for Australia.
Octopus Australia
The Octopus Australia Sustainable Investments Fund, known as OASIS, is a fund run by renewable energy specialists Octopus Australia. OASIS invests in assets across wind, solar and energy storage from development to construction and operations, and it provides exposure to Australia’s renewable energy transition.
OASIS has majority investments in the fully operational Darlington Point Solar Farm in New South Wales and the Dulacca Wind Farm in Queensland. They also have a number of wind and solar energy projects in development.
Dulacca Wind Farm, Queensland
Palisade Impact
Australian-based Palisade Impact focuses on real assets that contribute practical solutions to climate change by investing in next-generation infrastructure. Impact investments aim to generate strong financial returns alongside measurable social and/or environmental benefits and solutions.
The Palisade Impact Fund supports the development and expansion of investments across the following key streams:
- Organic waste to energy conversion: biogas, biofuel & reducing waste and wastewater
- Resource efficiency: technology for smarter and greener energy services
- Digital connectivity and equity: low-cost internet and digital solutions for low socio-economic households.
Quinbrook
Quinbrook Infrastructure Partners is a global investment manager with a specialist focus on the energy transition. Their expertise extends across low carbon and renewable energy supply, storage, grid stability, data centres powered by renewable energy and supply chain decarbonisation. Rest’s investment with Quinbrook gives our members exposure to many solar and battery projects including the planned Supernode data storage project, which is set to become one of the largest “green data” centres in the Southern Hemisphere, fully powered by renewable energy and battery storage.
Investing for our members’ future
Rest has other investments in physical renewable energy assets, like wind farms, as well as listed investments that contribute to the transition to a low carbon economy.
These are just some of the large-scale investments that have the potential to contribute to strong, long-term returns for our members’ futures, while also supporting our objective to achieve a net zero carbon footprint for the fund by 2050.
As responsible investors, we believe business and investment performance is unlikely to thrive in a world of poverty, inequality and climate stress. So, we believe it’s also in our members’ best financial interests that we support action that helps address social inequality, fair work and climate change. It’s important to remember that every investment that we consider must always first and foremost be in the best financial interest of our members.
1. International Energy Agency: Update to Net Zero Road Map, 2023. p.15
2. Carlin, D. (2023, June 2). The $100 trillion dollar investment opportunity in the climate transformation. Forbes.com. ttps://www.forbes.com/sites/davidcarlin/2021/06/02/the-ieas-net-zero-climate-pathway-is-a-100-trillion-investment-opportunity/
3. Clean Energy Finance Corporation, 2022-23 Annual Report, October 2023, p. 29.
