Home > HESTA’s investments in Santos and Woodside may be a breach of the law

HESTA’s investments in Santos and Woodside may be a breach of the law

8 August 2022

8 August, 2022

The Environmental Defenders Office has sent HESTA a legal letter on behalf of HESTA members Rod and Sue. The letter states that HESTA’s investments in Santos and Woodside could be in breach of the fund’s obligations to manage climate risk. The letter also claims that the fund could also be liable for misleading and deceptive conduct.

The letter outlines concerns that breaches could arise from HESTA failing to:

Adequately interrogate Woodside and Santos’ climate claims
Voting against shareholder proposals calling on Woodside and Santos to align with a net zero by 2050 scenario and
Continuing investment in these companies despite knowing their plans to expand oil and gas production are inconsistent with the Paris Agreement.

The letter also states HESTA may have engaged in misleading and deceptive conduct by claiming to be a leader on climate action while investing in climate wreckers Woodside and Santos.

While HESTA is being called out over its greenwashing, NGS Industry Super has recently announced a new oil and gas exclusion policy and publicly divested it from oil and gas producers. NGS has become the first industry super fund to fully divest from oil and gas companies like Woodside and Santos, raising the bar for climate action.

HESTA needs to ditch climate wreckers like Santos and Woodside for good.

Take action!

Amplify this letter by calling on HESTA to divest from climate wreckers, Santos and Woodside.

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Dear HESTA,

I have just seen in the news that HESTA has been sent a legal letter over investments in Santos and Woodside. It is concerning that HESTA continues to invest in Santos and Woodside while claiming to be a climate leader. Santos and Woodside are pursuing projects that are incompatible with the climate goals of the Paris Agreement. Climate leaders don’t invest in climate wreckers.

Years of investors claiming to change companies and bring about climate action through engagement has failed to stop these companies from pursuing new fossil fuel projects and business strategies incompatible with a 1.5°C warming limit. Several funds have taken a stand against the expansion of the oil and gas industry and started divesting from the likes of Woodside and Santos. Most recently, NGS Super became the very first industry fund to implement a comprehensive exclusion policy on pure-play oil and gas producers, like Woodside and Santos. HESTA is fast becoming a climate laggard. There are absolutely no excuses left for our fund not to implement the same (or better) climate ambitions and actions as NGS.

I am aware that many members have left the fund over this issue, and some organisations are reviewing their choice of HESTA as the default super fund for employees.

HESTA needs to take immediate action to end its investments in Woodside, Santos and all other companies expanding the scale of the fossil fuel sector. The fund also needs to implement a clear policy to exclude any such investments in the future.

Sincerely,

Of course I want to get updates about this campaign from Market Forces!

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TOOK ACTION: Super – HESTA legal letter re Santos and Woodside