Pension Giant Ploughs Nearly A$1 Billion Into Macquarie Climate Fund

Australian Retirement Trust, the nation’s second-largest pension fund, has committed almost A$1 billion to the Macquarie Green Energy and Climate Opportunities Fund, aiming to scale up its sustainable investing strategy. The sum is among ART’s first substantial investments under its target to allocate at least A$2 billion by 2030 into assets that generate both member returns and environmental or social impact.

Under the deal, ART will take exposure to renewable energy and climate-oriented assets domestically and internationally through MGECO. Projects already in the portfolio include Aula Energy, active in Queensland, South Australia and Western Australia, plus the Boulder Creek Wind Farm near Rockhampton.

Nicole Bradford, ART’s general manager of sustainable investment and planning, described the investment as a “significant milestone” in ART’s sustainability roadmap. She emphasised that climate risk has become a material factor for large investors, but one with opportunity. Michael Weaver, ART’s head of mid-risk assets and UK operations, said the fund will initially target solar, both onshore and offshore wind, and batteries in OECD countries including Australia. Potential future expansion includes technologies such as hydro, geothermal, bioenergy and natural climate solutions, if commercial scale allows.

MGECO is being managed by Macquarie and has been structured to pull together projects that align with climate transition goals while offering viable returns. ART positions this investment as the first of many under its 2030 impact goal, which covers more than just climate to include sectors like health, social housing and aged care.

Analysts say this move reflects a broader shift in superannuation and pension funds toward integrating sustainability and climate risk into core strategies. ART’s decision to invest heavily in clean energy infrastructure and climate-oriented assets is consistent with its previous exclusion of thermal coal from its portfolio when coal revenue exceeds certain thresholds, as part of its path to net zero emissions.