Home > Mark’s historic super fund legal win

Mark’s historic super fund legal win

5 November 2020

5 November 2020

You may have seen the news this week about 25-year-old Brisbane ecologist Mark McVeigh, who won a historic legal battle against his $57 billion super fund, Rest, over climate change.

What you may not know is that Mark used Market Forces’ research and tools to start asking Rest about its approach to climate change risks way back in 2017, when we published our Risky Business report and commissioned a groundbreaking legal opinion on super funds’ duties around climate risk management.

After a two-year legal process, with the case about to go to trial on Monday, Rest finally conceded “climate change is a material, direct and current financial risk to the superannuation fund.”

The fund has agreed to:

Target net-zero portfolio emissions by 2050
Disclose all investments
Identify, quantify and manage climate risks, having regard to the Paris Agreement, including:
- Stress testing its portfolio against a Paris-aligned scenario
- Considering climate risks in its investment strategy

The case now sets the minimum standard of climate action that every other super fund in Australia should meet.

Market Forces intends to keep pushing super funds further, seeking, most importantly, funds take immediate steps to reduce climate risk by divesting your retirement savings from the coal, oil and gas companies that are undermining the Paris climate goals.

Tell your super fund to take climate action, or risk losing you as a member.

We’ve seen some movement from super funds in recent months, with hundreds of millions of dollars being withdrawn from some of Australia’s dirtiest companies.

However, it’s still a matter of not enough super funds, and not enough divestment.

Take action

1Your details

2Your message

Super fund*
UniSuper members
We’ve launched a targeted campaign just for you at UniSuperDIVEST.org

Join the movement today!
First State Super and VicSuper members
Following the merger of these two funds, your new fund is called Aware Super. Please select Aware Super above to take action.
Good news!
Your super fund doesn't invest in any coal, oil or gas companies. But you can still have an impact - head to this page to let us know which super fund you left to join a fossil fuel free fund.
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Subject
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Your message to your super fund*
(you can personalise and amend this, your name will be automatically added at the end)
The outcome of the Rest legal action clearly shows the dangers of lagging other super funds when it comes to managing climate change risks. Your failure to institute any fund-wide fossil fuel exclusions leaves you falling behind many other super funds on climate action, posing unacceptable risks to the planet and members like me. As my super fund, you have a duty to act in my best interests, including managing climate change risks. Investing my money in companies whose success is predicated on climate destruction is out of line with that duty. Many super funds have at least excluded investments in thermal coal mining companies, while Suncorp has recently instituted a plan to phase out investment exposure to oil and gas production by 2040, with interim steps towards that goal. A number of funds are leading the way by excluding any investments in fossil fuel companies. Without any fossil fuel exclusions, you remain prepared to invest my retirement savings in the companies and activities that are entirely at odds with my values and those of anyone wishing to retire into a world that is not scrambling to cope with catastrophic, runaway climate change. I ask that you turn this around and take the lead on addressing climate risk by divesting from all coal, oil and gas companies that are undermining the Paris climate goals by expanding the scale of the fossil fuel sector. Please respond within two weeks, outlining your plans to divest from such fossil fuel companies, or I will be motivated to take further action. Sincerely
Your message to your super fund*
(you can personalise and amend this, your name will be automatically added at the end)
I am pleased the fund has divested from a number of coal companies, and want to acknowledge this important step towards aligning the fund’s portfolio with the values of members. However, the fund still has a long way to go to end investment in all coal, oil and gas companies that are undermining the climate goals of the Paris Agreement. Clearly, your thermal coal divestment decision recognises the poor financial outlook for that sector. While I would point out there is sufficient moral and environmental justification for avoiding investments in companies whose profitability relies on the failure of the Paris Agreement, the fund must also recognise the unacceptable transition risks facing the oil and gas sectors if we are to hold warming to 1.5°C. A number of super funds exclude investment in any fossil fuel companies, while Suncorp has recently instituted a plan to phase out investment exposure to oil and gas production by 2040, with interim steps towards that goal. It is clear that any super fund wanting to take the lead on climate action and avoid the stranded asset risk facing the oil and gas industry must stop investing in the companies that are expanding the scale of these industries (see marketforces.org.au/outofline). Please respond within two weeks detailing your plan to exit all such investments. Sincerely
Your message to AustralianSuper*
(you can personalise and amend this, your name will be automatically added at the end)
Your failure to institute any fund-wide fossil fuel exclusions leaves you falling behind many other super funds on climate action, and poses unacceptable risks to the planet and members like me. I understand the fund will soon be updating its climate policy, and ask that this update include clear plans to exit the coal, oil and gas sectors. As my super fund, you have a duty to act in my best interests, including managing climate change risks. Investing my money in companies whose success is predicated on climate destruction is out of line with that duty. Many super funds have at least excluded investments in thermal coal mining companies, while Suncorp has recently instituted a plan to phase out investment exposure to oil and gas production by 2040, with interim steps towards that goal. A number of funds are leading the way by excluding any investments in fossil fuel companies. Without any fossil fuel exclusions, you remain prepared to invest my retirement savings in the companies and activities that are entirely at odds with my values and those of anyone wishing to retire into a world that is not scrambling to cope with catastrophic, runaway climate change. I ask that you turn this around and take the lead on addressing climate risk by ensuring the coming policy update includes plans to divest from all coal, oil and gas companies that are undermining the Paris climate goals by expanding the scale of the fossil fuel sector. Please respond within two weeks, outlining your plans to divest from such fossil fuel companies, or I will be motivated to take further action. Sincerely
Your message to Cbus*
(you can personalise and amend this, your name will be automatically added at the end)
I was pleased to see Cbus progress its climate policy recently, and want to acknowledge this important step towards aligning the fund’s portfolio with the values of members. However, Cbus still has a long way to go to end investment in all coal, oil and gas companies that are undermining the climate goals of the Paris Agreement. Cbus must must recognise that the pathway to net-zero by 2050 does not allow further expansion of the coal, oil and gas sectors. Without any fund-wide fossil fuel exclusions, Cbus remains prepared to invest my retirement savings in the companies and activities that are entirely at odds with its net-zero 2050 commitment. These investments are inconsistent with my values and those of anyone wishing to retire into a world that is not scrambling to cope with catastrophic, runaway climate change. Many super funds have at least excluded investments in thermal coal mining companies, while Suncorp has recently instituted a plan to phase out investment exposure to oil and gas production by 2040, with interim steps towards that goal. A number of funds are leading the way by excluding any investments in fossil fuel companies. I ask that you extend the current climate policy and take the lead on addressing climate risk by divesting from all coal, oil and gas companies that are undermining the Paris climate goals by expanding the scale of the fossil fuel sector. Please respond within two weeks detailing your plan to exit all such investments. Sincerely
Your message to Rest*
(you can personalise and amend this, your name will be automatically added at the end)
I was pleased to see Rest finally acknowledge the need to progress its climate policy, although I'm dismayed it took a two year legal battle to get to this point. While I acknowledge this important step towards aligning the fund’s portfolio with the values of members, Rest still has a long way to go to end investment in all coal, oil and gas companies that are undermining the climate goals of the Paris Agreement. Rest must must recognise that the pathway to net-zero by 2050 does not allow further expansion of the coal, oil and gas sectors. Without any fund-wide fossil fuel exclusions, Rest will remain prepared to invest my retirement savings in the companies and activities that are entirely at odds with its net-zero 2050 commitment. These investments are inconsistent with my values and those of anyone wishing to retire into a world that is not scrambling to cope with catastrophic, runaway climate change. Many super funds have at least excluded investments in thermal coal mining companies, while Suncorp has recently instituted a plan to phase out investment exposure to oil and gas production by 2040, with interim steps towards that goal. A number of funds are leading the way by excluding any investments in fossil fuel companies. I ask that you extend the current climate commitments and take the lead on addressing climate risk by divesting from all coal, oil and gas companies that are undermining the Paris climate goals by expanding the scale of the fossil fuel sector. Please respond within two weeks detailing your plan to exit all such investments. Sincerely
Your message to Suncorp*
(you can personalise and amend this, your name will be automatically added at the end)
I was pleased to see Suncorp's recent climate policy recently, and want to acknowledge the important steps towards aligning the fund’s portfolio with the values of Suncorp super fund members. However, there is still room for improvement to end investment in all coal, oil and gas companies that are undermining the climate goals of the Paris Agreement. I ask that you extend the current climate policy to immediately exclude investment in any company that is expanding the scale of the fossil fuel sector, including oil and gas infrastructure. Sincerely
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Are your retirement savings still invested in climate destruction?

Three of the largest 15 super funds have recently divested from companies whose main business is mining coal for power generation (known as thermal coal), such as Whitehaven Coal and New Hope Group.

This means 8 of the largest 40 super funds – Aware Super, Hesta, UniSuper, Suncorp, NGS Super, Vision Super, Local Government Super, and Media Super – now exclude these thermal coal miners. Local Government and NGS also exclude investments in coal power generators like AGL, and Suncorp will do this by 2025.

Your fund risks being left behind if it hasn’t started getting your retirement savings out of polluting coal companies. And ‘left behind’ isn’t a place where super funds want to be when it comes to managing climate risk – just ask Rest about losing its two year long legal battle!

When it comes to other fossil fuels, one top 40 super fund, Suncorp, has announced a plan to phase down its investments in oil and gas production to zero by 2040. This policy will eventually see divestment from companies like Woodside, Santos and Origin Energy, whose oil and gas expansion plans are totally inconsistent with the climate goals of the Paris Agreement.

There are of course a number of smaller super funds that don’t invest in fossil fuels at all, which has them clearly leading the way on climate action. These funds are included at the bottom of the table to provide examples of comprehensive coal, oil and gas exclusion policies.

Just like Mark, you can find out how your super fund stacks up on #ClimateAction and hold them to account over dirty coal, oil and gas investments!https://t.co/h7ghyHTJd9
— Market Forces (@market_forces) November 5, 2020

Top 40 super funds

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Fund	Coal exclusions	Oil and gas exclusions	Take action
ACSRF	4 - None Invests in: Whitehaven Coal, New Hope, BHP, AGL & Origin	4 - None Invests in: Woodside, Santos, Oil Search, Origin	Contact fund
AMP	4 - None Invests in: Whitehaven Coal, New Hope, BHP, AGL & Origin	4 - None Invests in: Woodside, Santos, Oil Search, Origin	Contact fund
ANZ OnePath	4 - None Invests in: Whitehaven Coal, New Hope, BHP, AGL & Origin	4 - None Invests in: Woodside, Santos, Oil Search, Origin	Contact fund
AustralianSuper	4 - None Invests in: Whitehaven Coal, New Hope, BHP, AGL & Origin	4- None Invests in: Woodside, Santos, Oil Search, Origin	Contact fund
Aware Super	3 - Minimal Does not invest in: Whitehaven Coal, New Hope Invests in: BHP, AGL & Origin	4 - None Invests in: Woodside, Santos, Oil Search, Origin	Contact fund
BTFG	4 - None Invests in: Whitehaven Coal, New Hope, BHP, AGL & Origin	4 - None Invests in: Woodside, Santos, Oil Search, Origin	Contact fund
CareSuper	4 - None Invests in: Whitehaven Coal, New Hope, BHP, AGL & Origin	4 - None Invests in: Woodside, Santos, Oil Search, Origin	Contact fund
Catholic Super	4 - None Invests in: Whitehaven Coal, New Hope, BHP, AGL & Origin	4 - None Invests in: Woodside, Santos, Oil Search, Origin	Contact fund
Cbus	4 - None Invests in: Whitehaven Coal, New Hope, BHP, AGL & Origin	4 - None Invests in: Woodside, Santos, Oil Search, Origin	Contact fund
Colonial First State	4 - None Invests in: Whitehaven Coal, New Hope, BHP, AGL & Origin	4 - None Invests in: Woodside, Santos, Oil Search, Origin	Contact fund
CommBank Group Super	4 - None Invests in: Whitehaven Coal, New Hope, BHP, AGL & Origin	4 - None Invests in: Woodside, Santos, Oil Search, Origin	Contact fund
Commonwealth Super Corp	4 - None Invests in: Whitehaven Coal, New Hope, BHP, AGL & Origin	4 - None Invests in: Woodside, Santos, Oil Search, Origin	Contact fund
EnergySuper	4 - None Invests in: Whitehaven Coal, New Hope, BHP, AGL & Origin	4 - None Invests in: Woodside, Santos, Oil Search, Origin	Contact fund
equipsuper	4 - None Invests in: Whitehaven Coal, New Hope, BHP, AGL & Origin	4 - None Invests in: Woodside, Santos, Oil Search, Origin	Contact fund
HESTA	3 - Minimal Does not invest in: Whitehaven Coal, New Hope Invests in: BHP, AGL & Origin	4 - None Invests in: Woodside, Santos, Oil Search, Origin	Contact fund
HOSTPlus	4 - None Invests in: Whitehaven Coal, New Hope, BHP, AGL & Origin	4 - None Invests in: Woodside, Santos, Oil Search, Origin	Contact fund
IOOF	4 - None Invests in: Whitehaven Coal, New Hope, BHP, AGL & Origin	4 - None Invests in: Woodside, Santos, Oil Search, Origin	Contact fund
LGIAsuper	4 - None Invests in: Whitehaven Coal, New Hope, BHP, AGL & Origin	4 - None Invests in: Woodside, Santos, Oil Search, Origin	Contact fund
Local Government Super	2 - Some Does not invest in: Whitehaven Coal, New Hope, AGL & Origin Invests in: BHP	3 - Minimal Invests in: Woodside, Santos, Oil Search, Origin	Contact fund
LUCRF	4 - None Invests in: Whitehaven Coal, New Hope, BHP, AGL & Origin	4 - None Invests in: Woodside, Santos, Oil Search, Origin	Contact fund
Macquarie	4 - None Invests in: Whitehaven Coal, New Hope, BHP, AGL & Origin	4 - None Invests in: Woodside, Santos, Oil Search, Origin	Contact fund
Media Super	3 - Minimal Does not invest in: Whitehaven Coal, New Hope Invests in: BHP, AGL & Origin	4 - None Invests in: Woodside, Santos, Oil Search, Origin	Contact fund
Mercer	4 - None Invests in: Whitehaven Coal, New Hope, BHP, AGL & Origin	4 - None Invests in: Woodside, Santos, Oil Search, Origin	Contact fund
Mine Wealth and Wellbeing	4 - None Invests in: Whitehaven Coal, New Hope, BHP, AGL & Origin	4 - None Invests in: Woodside, Santos, Oil Search, Origin	Contact fund
MLC	4 - None Invests in: Whitehaven Coal, New Hope, BHP, AGL & Origin	4 - None Invests in: Woodside, Santos, Oil Search, Origin	Contact fund
MTAA Super	4 - None Invests in: Whitehaven Coal, New Hope, BHP, AGL & Origin	4 - None Invests in: Woodside, Santos, Oil Search, Origin	Contact fund
Netwealth Super	4 - None Invests in: Whitehaven Coal, New Hope, BHP, AGL & Origin	4 - None Invests in: Woodside, Santos, Oil Search, Origin	Contact fund
NGS Super	2 - Some Does not invest in: Whitehaven Coal, New Hope, AGL & Origin Invests in: BHP	4 - None Invests in: Woodside, Santos, Oil Search, Origin	Contact fund
PostSuper	4 - None Invests in: Whitehaven Coal, New Hope, BHP, AGL & Origin	4 - None Invests in: Woodside, Santos, Oil Search, Origin	Contact fund
Qantas Super	4 - None Invests in: Whitehaven Coal, New Hope, BHP, AGL & Origin	4 - None Invests in: Woodside, Santos, Oil Search, Origin	Contact fund
QSuper	4 - None Invests in: Whitehaven Coal, New Hope, BHP, AGL & Origin	4 - None Invests in: Woodside, Santos, Oil Search, Origin	Contact fund
REST	4 - None Invests in: Whitehaven Coal, New Hope, BHP, AGL & Origin	4 - None Invests in: Woodside, Santos, Oil Search, Origin	Contact fund
Russell Investments	4 - None Invests in: Whitehaven Coal, New Hope, BHP, AGL & Origin	4 - None Invests in: Woodside, Santos, Oil Search, Origin	Contact fund
Statewide Super	4 - None Invests in: Whitehaven Coal, New Hope, BHP, AGL & Origin	4 - None Invests in: Woodside, Santos, Oil Search, Origin	Contact fund
Suncorp	1 - Comprehensive (plan) Invests in: Whitehaven Coal, New Hope, BHP, AGL & Origin But will divest by 2025	2 - Some (plan) Invests in: Woodside, Santos, Oil Search, Origin But will divest by 2040	Contact fund
Sunsuper	4 - None Invests in: Whitehaven Coal, New Hope, BHP, AGL & Origin	4 - None Invests in: Woodside, Santos, Oil Search, Origin	Contact fund
Tasplan Super	4 - None Invests in: Whitehaven Coal, New Hope, BHP, AGL & Origin	4 - None Invests in: Woodside, Santos, Oil Search, Origin	Contact fund
Telstra Super	4 - None Invests in: Whitehaven Coal, New Hope, BHP, AGL & Origin	4 - None Invests in: Woodside, Santos, Oil Search, Origin	Contact fund
Unisuper	3 - Minimal Does not invest in: Whitehaven Coal, New Hope Invests in: BHP, AGL & Origin	4 - None Invests in: Woodside, Santos, Oil Search, Origin	Contact fund
Vision Super	3 - Minimal Does not invest in: Whitehaven Coal, New Hope Invests in: BHP, AGL & Origin	3 - Minimal Invests in: Woodside, Santos, Oil Search, Origin	Contact fund

Fossil fuel free fund examples

Fund	Coal exclusions	Oil and gas exclusions	Take action
Australian Ethical	1 - Comprehensive Does not invest in: Whitehaven Coal, New Hope, BHP, AGL & Origin	1 - Comprehensive Does not invest in: Woodside, Santos, Oil Search, Origin	Contact fund
Future Super	1 - Comprehensive Does not invest in: Whitehaven Coal, New Hope, BHP, AGL & Origin	1 - Comprehensive Does not invest in: Woodside, Santos, Oil Search, Origin	Contact fund
Verve Super	1 - Comprehensive Does not invest in: Whitehaven Coal, New Hope, BHP, AGL & Origin	1 - Comprehensive Does not invest in: Woodside, Santos, Oil Search, Origin	Contact fund
Cruelty Free Super	1 - Comprehensive Does not invest in: Whitehaven Coal, New Hope, BHP, AGL & Origin	1 - Comprehensive Does not invest in: Woodside, Santos, Oil Search, Origin	Contact fund

Table methodology

Table shows the fund-wide investment exclusion policies (based on information publicly available on funds’ websites as at 29 September 2020) of the top 40 Australian super funds by assets under management, according to the latest APRA Superannuation Statistics.

Four fossil fuel-free super funds, which are outside the top 40, are also presented to provide examples of comprehensive coal, oil and gas exclusion policies.

Coal exclusion policy categories:

Comprehensive – Fund-wide policy to exclude investments in companies deriving any revenue from thermal or coking coal mining, transport, or coal power generation
Some – Fund-wide policy to exclude investments in companies deriving 33% (or lower threshold) of revenue from thermal coal mining, or coal power generation
Minimal – Fund-wide policy to exclude investments in companies deriving 33% (or lower threshold) of revenue from thermal coal mining
None – No fund-wide exclusion policy

Oil and gas exclusion policy categories:

Comprehensive – Fund-wide policy to exclude investments in companies deriving any revenue from oil and gas production, power generation, refining / processing, or transport
Some – Fund-wide policy to exclude investments in companies deriving 33% (or lower threshold) of revenue from oil and gas production
Minimal – Fund-wide policy to exclude investments in companies deriving 33% (or lower threshold) from tar sand oil production and / or arctic oil extraction
None – No fund-wide exclusion policy

The information provided by Market Forces does not constitute financial advice. The information is presented in order to inform people motivated by environmental concerns and take actions based on those concerns. Market Forces is organising data for environmental ends.

The information and actions provided by Market Forces do not account for any individual’s personal objectives, financial situation or needs. It should not be used, relied upon, or treated as a substitute for specific professional advice.

Market Forces recommends all users obtain their own independent professional advice before making any decision relating to their particular requirements or circumstances. Switching super funds may have unintended financial consequences.

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