Private health insurer Medibank Private is set to reduce its investments in carbon-intensive industries in recognition of the adverse impacts that climate change have on human health.
Medibank Private has already removed tobacco stocks from its international investment portfolio and on Monday chairman Elizabeth Alexander said has increasing expectations of corporations beyond meeting legal, ethical and economic responsibilities.
"In line with our commitment to the health and wellbeing of our customers, Medibank has begun a process to reduce our exposure to carbon intensive assets," Ms Alexander said in a speech to the company's annual general meeting in Melbourne.
"We understand that the health of the environment has an impact on the health of the community.
"Medibank acknowledges the science of climate change and the impacts on human health."
Ms Alexander said Medibank's exposure to high-carbon investments is small, making up less than 0.5 per cent of the group's investment assets.
Medibank will transition to low-carbon investments in its international investment portfolio within the next 12 months, and is exploring a similar approach within its domestic equity portfolio.
Meanwhile, Medibank Private chief executive Craig Drummond has maintained the company's previously stated outlook for health insurance.
"There are no major changes to the FY18 health insurance outlook comments we provided in August, with the business tracking well," Mr Drummond told shareholders.
Growth in the hospital utilisation rate is expected to be in line with, or slightly below, the level of 3.6 per cent in fiscal 2017.
The momentum from late fiscal 2017 in building market share was continuing into fiscal 2018.
"While the busiest selling periods are still ahead of us, we are pleased with the start to the new financial year," Mr Drummond said.
Medibank Private in August said overall market volumes were expected to be flat in fiscal 2018, and the company expects to stabilise its market share by the end of 2019.
Share in Medibank Private were 0.5 cents, or 0.16 per cent, lower at $3.155 at 1132 AEDT.
