Australian Retirement Trust (ART), the country’s second-largest super fund, has announced a landmark $2 billion commitment to impact investing.
By 2030 ART will fund a $1 billion investment in the Macquarie Green Energy and Climate Opportunities Fund (MGECO). This significant step positions ART alongside other major institutional investors such as UniSuper, who have also backed MGECO. The fund’s portfolio already includes renewable energy and climate projects with around 17 gigawatts of green energy generation capacity, ranging from solar and wind to energy storage and climate solutions.
Why it matters
Impact investing is growing globally, with the sector estimated to be worth $US1.57 trillion**. However, in Australia it has often been described as a “cottage industry” struggling to achieve scale among institutional investors. ART’s commitment represents one of the most ambitious signals yet that impact investing is moving into the mainstream.
Nicole Bradford, ART’s General Manager of Sustainable Investment and Planning, highlighted that the strategy goes beyond renewable energy:
“Our commitment to impact investing goes beyond just climate change, and may include assets in the health, social housing and aged care sectors, among others. We believe we can deliver strong financial returns while making a positive difference.”
Michael Weaver, ART’s General Manager of Mid-Risk Assets and UK, noted that MGECO will initially invest in solar, onshore and offshore wind, and battery projects across OECD countries including Australia. Over time, it may also expand to technologies such as hydro, geothermal, bioenergy, and natural climate solutions.
Key highlights of ART’s impact strategy
- $2 billion commitment to impact investments by 2030.
- First $1 billion invested into MGECO, alongside global investors.
- MGECO’s portfolio already includes six major renewable energy and climate projects.
- Projects equate to around 17 GW of clean energy capacity.
- Investments will target climate, health, social housing, and aged care.
- Separate to ART’s existing climate commitment of at least $14 billion.
A turning point for superannuation and impact
ART’s investment marks a turning point for Australian super funds, signalling that impact investing is no longer niche but integral to long-term value creation. By channelling billions into projects that combine financial returns with measurable social and environmental outcomes, ART is helping shift the future of retirement savings toward purpose as well as profit.
