Challenger has maintained net zero emissions across its Scope 1 and 2 operations for the financial year 2026, while setting a long-term ambition to achieve net zero emissions by 2050. The company continued to measure and disclose greenhouse gas emissions for operations and financed emissions across its investment portfolio.
Material actions and disclosures
Challenger calculated its Scope 1 emissions from direct emissions from its Sydney office and Scope 2 emissions from purchased electricity. The company’s gross Scope 1 emissions decreased by 9.5% and Scope 2 emissions reduced by approximately 8.5% during FY26. Challenger procured renewable electricity for tenancy power across its Australian operations and purchased carbon removal offsets for residual Scope 1 emissions and overseas Scope 2 emissions.
Challenger also contributed to the Sunnyside Permanent Planting project by purchasing and retiring 1,441 Australian Carbon Credit Units. The company’s fixed income portfolio expanded the coverage of financed emissions calculation to include eligible private asset exposures.
Forward commitments
Challenger committed to achieve net zero emissions across its operational emissions by 2050. The company will disclose Scope 3 financed emissions within its mandatory Sustainability Report from FY27 and will progressively expand its coverage of portfolio emissions as data availability, methodologies, and data quality strengthen.
Challenger will continue to engage with peers and industry bodies to align with regulatory and legislative developments and will continue to support gender diversity through its Diversity, Equity and Inclusion Strategy.
Attributed to Challenger’s announcement, the company’s efforts reflect a commitment to environmental sustainability and compliance with evolving ESG standards.