NGS Super has divested oil and gas exploration and product companies from its A$13 billion ($9.1 billion) portfolio, in line with the Sydney-based super fund's pledge to make its portfolio carbon neutral by 2030.
NGS, in a news release Thursday, said holdings of Perth-based Woodside Energy Group and Adelaide-based Santos were among the A$191 million of oil and gas exploration and production company stock dropped from the portfolio as of May 31.
That effectively amounts to an extension of restrictions NGS has on holding companies that generate more than 30% of their revenues from distribution, power generation or extraction of thermal coal.
The news release said NGS's research has shown such divestment "will reduce risk and free up capital to invest across industries that are aimed at solving climate change, such as green hydrogen, renewable energies, agriculture solutions and automation."
In May, NGS announced an interim carbon reduction target of 35% by 2025, en route to carbon neutrality by 2030 – "two decades earlier than other super funds," the news release said.
Against the backdrop of regulatory pressure on smaller super funds to merge with bigger competitors to provide members with stronger investment programs and lower fees, Ben Squires, NGS' chief investment officer, said in the news release: "We're not a 'mega-fund' but with over A$13 billion in funds under management, we can have a positive impact for our members and our planet."
Mr. Squires couldn't immediately be reached for further comment.
