Home > Despite stated intentions, NIB remains invested in fossil fuels

Despite stated intentions, NIB remains invested in fossil fuels

31 October 2018

31 October 2018

NIB health insurance disappointed customers and shareholders at its annual general meeting (AGM) today with its continued delay in finishing off the fossil fuel divestment work it began way back in 2016.

In March 2016, NIB dumped coal, oil and gas company shares from its international share portfolio because of the health impacts of these industries. When asked about this at its 2017 meeting, NIB's chairman said NIB felt it was "not appropriate to be invested in those companies." NIB's CEO added that it was the company's "intention" to also divest its Australian shares of fossil fuels.

One year on, shareholder questions confirmed NIB is still invested in polluting coal, oil and gas companies listed in Australia. NIB talked up its sustainability credentials, but these are overshadowed by the fact that it is using customer premiums to help the expansion of the destructive coal, oil and gas industries.

Too difficult to divest

When asked about this contradiction between NIB's actions and its stated pro-health values, CEO Mark Fitzgibbon claimed it was too difficult to divest and that "it was naive of me to set a timetable on it (NIB’s continued divestment from fossil fuels)."

NIB's claim that it's too "difficult" to divest from fossil fuels in Australia is at odds with their competitor Medibank, which is committed to divest completely from them by this financial year end.

Shareholders also asked about NIB's attitude towards the Paris Agreement, inquiring whether the company supports the global goal of limiting warming to well below 2 degrees.

In its annual report the company states: "As a good corporate citizen mindful of future generations, especially given the potential health impacts to individuals and communities due to climate change, we have a role to play in supporting carbon reducing initiatives."

Yet NIB’s board dodged this question entirely, failing to lend its voice to the world's most important carbon reducing initiative to date.

What you can do

Watch the video below for a summary of NIB's current position, and if you have private health insurance, you can also contact your insurer using the form below. Find out where your insurer stands on fossil fuels here.

Your Health Insurer*
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Your message (you can personalise and amend this, your name will be automatically added at the end)*
I am a member of yours and I recently learned that health insurers HCF, Medibank and NIB have announced their divestment from fossil fuels, due to their negative impacts on human health. Latrobe Health Services, Doctors Health Fund and Westfund have also confirmed their investments are fossil fuel free. I would like to know what proportion of your investment portfolio is invested in fossil fuels - including coal, gas & oil companies in addition to fossil fuel infrastructure. These companies are the primary sources of carbon emissions causing dangerous climate change, which is already having measurable impacts on public health. Fossil fuel extraction, transportation and combustion also directly cause pollution and ecological destruction - having terrible impacts on human health across the globe and in Australia. One clear example of this is the growing concern over miners in Queensland and New South Wales being diagnosed with black lung disease and other respiratory illnesses. The Lancet, the world’s foremost medical journal has described climate change as the “biggest global health threat of the 21st Century”. Here in Australia, the Royal Australasian College of Physicians (RACP) divested from fossil fuels in 2015, saying: "The RACP is committed to leadership in reducing the adverse health impacts and realising the potential health benefits of climate change. As a first step in reducing its own carbon footprint, in 2015 the RACP decided to divest from all financial holdings in or directly linked to fossil fuel industries.” I would find it incredibly hypocritical if my fund is invested in fossil fuels when the latest science suggest that they are causing a global health catastrophe. Please advise of your plans, if any, to reduce your exposure to fossil fuels. And if you don't have any fossil fuel investments, then I would like to see a commitment from you that you won't be investing in them in the future, like Latrobe Health Services has done. For the record I would like to state that for the reasons outlined above, I want a health insurer that is not investing my money in the fossil fuel industry and never will. If you are unable to guarantee this, then I will start looking for an alternative fund that can. I look forward to your response.
Your message (you can personalise and amend this, your name will be automatically added at the end)*
I am a member of HCF. I was pleased to see that HCF has announced its divestment from fossil fuels, due to their negative impacts on human health. I would like to congratulate you for becoming the first health fund in the country to make this announcement. These companies are the primary sources of carbon emissions causing dangerous climate change, which is already having measurable impacts on public health. I am aware that you have now completed fossil fuel divestment from your international share portfolio and have committed to developing a strategy for your Australian shares. What is this strategy? I hope you are not abandoning your commitment half-way through. If divesting from fossil fuels is in line with your values, then remaining invested in these dirty industries in Australia goes against what you publicly stand for. Please keep me informed of your progress with your Australian shares. I hope you will keep your word and let me know your strategy for dealing with them soon. Yours sincerely,
Your message (you can personalise and amend this, your name will be automatically added at the end)
Dear Bupa I am a member of yours and I recently learned that other health insurers HCF, Medibank and NIB have announced their divestment from fossil fuels, due to their negative impacts on human health. I’ve also heard that Latrobe Health Services, which, like Bupa, currently doesn’t have any equity investments, has pledged not to invest in fossil fuels in the future. I am writing to ask that as a company that’s interested in promoting good health among your customers, you make a similar public commitment to never investing in coal, oil and gas companies and infrastructure. These companies are the primary sources of carbon emissions causing dangerous climate change, which is already having measurable impacts on public health. Fossil fuel extraction, transportation and combustion also directly cause pollution and ecological destruction - having terrible impacts on human health across the globe and in Australia. One clear example of this is the growing concern over miners in Queensland and New South Wales being diagnosed with black lung disease and other respiratory illnesses. The Lancet, the world’s foremost medical journal has described climate change as the “biggest global health threat of the 21st Century”. Here in Australia, the Royal Australasian College of Physicians (RACP) divested from fossil fuels in 2015, saying: "The RACP is committed to leadership in reducing the adverse health impacts and realising the potential health benefits of climate change. As a first step in reducing its own carbon footprint, in 2015 the RACP decided to divest from all financial holdings in or directly linked to fossil fuel industries.” When the latest science suggests that fossil fuels are causing a global health catastrophe, I’d like to be reassured that my premiums will never be used to worsen this crisis. Please advise if you are willing to commit to never investing in fossil fuel companies. If you won't, then I will consider shifting to a health insurer who will. I look forward to your response.
Your message (you can personalise and amend this, your name will be automatically added at the end)
Dear Latrobe Health Services, I am a member of yours and I recently learned that you have committed never to invest in coal, oil or gas companies and infrastructure. I would like to congratulate you for this stance. These companies are the primary sources of carbon emissions causing dangerous climate change, which is already having measurable impacts on public health. It pleases me greatly that my health fund has shown such leadership when it is so desperately needed throughout the financial community. I would also recommend that you make an effort to publicly advertise your position of being fossil fuel free. Yours sincerely,
Your message (you can personalise and amend this, your name will be automatically added at the end)
Dear Doctors' Health Fund, I am a member of yours and I recently learned that you have confirmed that you don't invest in coal, oil or gas companies and infrastructure and you won't be investing in the future. I would like to congratulate you for this stance. These companies are the primary sources of carbon emissions causing dangerous climate change, which is already having measurable impacts on public health. It pleases me greatly that my health fund has shown such leadership when it is so desperately needed throughout the financial community. I would also recommend that you make an effort to publicly advertise your position of being fossil fuel free. Yours sincerely,
Your message (you can personalise and amend this, your name will be automatically added at the end)
Dear Westfund, I am a member of yours and I recently learned that you have confirmed that you don't invest in coal, oil or gas companies and infrastructure. I would like to congratulate you for this stance. These companies are the primary sources of carbon emissions causing dangerous climate change, which is already having measurable impacts on public health. I would like to request that you take one more step in the right direction by committing to never invest in fossil fuels in the future. Can you do this? It pleases me greatly that my health fund has shown leadership when it is so desperately needed throughout the financial community. I would also recommend that you make an effort to publicly advertise your position of being fossil fuel free. Yours sincerely,
Your message (you can personalise and amend this, your name will be automatically added at the end)
Dear NIB, I am a member of yours and I am pleased to hear that you have divested from most fossil fuel companies in your international share portfolio. These companies are the primary sources of carbon emissions causing dangerous climate change, which is already having measurable impacts on public health. It pleases me that my health fund has shown leadership when it is so desperately needed throughout the financial community. I am writing to ask that you take the next logical step by divesting your customers' money from fossil fuel companies in your Australian share portfolio. Please extend your commitment to public health across all your investments. As a customer I do not want to have my money used to fund activities that pollute the air and water and worsen climate change. If you can't provide that, then I will look for an insurer who can. Thank you, and please keep me informed of your progress with your Australian shares. Yours sincerely,
Your message (you can personalise and amend this, your name will be automatically added at the end)
Dear Teachers Health, I am a member of yours and I am pleased to hear that you have partly divested your international share portfolio of fossil fuels. Fossil fuel companies are the primary sources of carbon emissions causing dangerous climate change, which is already having measurable impacts on public health. For the record I would like to state that I want a health insurer that is not investing my money in the fossil fuel industry and never will. I urge you to complete your fossil fuel divestment process as soon as possible, by extending your international share divestment to all coal, oil and gas companies and by divesting your Australian share portfolio. Please let me know when this will be done by. Yours sincerely,
Your message (you can personalise and amend this, your name will be automatically added at the end)
Dear Medibank, I’m writing to congratulate you on taking a stance against fossil fuels and their negative impacts on public health. Your commitment to divest from coal, oil and gas companies will send a strong signal to your customers, shareholders and the general public that Medibank takes its role as a health organisation seriously. As a customer I am proud that you have taken this step. I am aware that you have completed divestment of your international and domestic share portfolios. I also expect Medibank will use its position as Australia’s largest health insurer to speak out more often in defence of strong action on climate change and a rapid transition away from fossil fuels to renewable energy, for the sake of public health. Warm regards,
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