ESG Research Update
/New report reveals behaviour of Australian super funds
Nine of Australia’s 40 biggest superannuation funds have divested from some of the worst carbon-emitting companies, shows research from MarketForces, an investor activist group. The total amount divested from fossil fuels is at $500 billion - almost a quarter of all superannuation assets under management, not including self-managed superannuation.
The report, Out of Line Out of Time, points out the 23 ASX-listed companies it identified as doing the most damage to the environment and contributing to climate change. The report argues that all these companies are worth divesting, with big names such as Woodside Petroleum, BHP, Santos, Washington H Soul Pattison, Whitehaven Coal and Oil Search.
"Despite this recent progress, the majority of Out of Line companies continue to enjoy the financial backing of the majority of our super funds," Market Forces said.
"With this in mind, Market Forces has worked with shareholders to force super funds to have a difficult conversation with fossil fuel producers, with investors having to vote on formal proposals calling on companies to bring about an end to fossil fuel production."
Some examples include that Hostplus has an $88.4 million holding in Woodside Petroleum, a $73.5 million holding in Santos and a $539.7 million investment in BHP. Market Forces responded by creating a specific campaign calling on Hostplus to divest from fossil fuels. The most recent campaign aimed at UniSuper proved successful, with the fund announcing divestment plans for Whitehaven Coal, New Hope Group and Washington H Soul Pattison.
Many large superannuation funds have made commitments to divest thermal coal and/or to reach net-zero emissions by 2050, other large funds like Commonwealth Super Corporation, QSuper, Sunsuper and Hostplus are making no such promises.
