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We’ve seen some movement from super funds in recent months, with hundreds of millions of dollars being withdrawn from some of Australia’s dirtiest companies.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

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.

Top 40 super funds

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FundCoal exclusionsOil and gas exclusionsTake 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
FundCoal exclusionsOil and gas exclusionsTake 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:

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

Oil and gas exclusion policy categories:

  1. Comprehensive – Fund-wide policy to exclude investments in companies deriving any revenue from oil and gas production, power generation, refining / processing, or transport
  2. Some – Fund-wide policy to exclude investments in companies deriving 33% (or lower threshold) of revenue from oil and gas production
  3. Minimal – Fund-wide policy to exclude investments in companies deriving 33% (or lower threshold) from tar sand oil production and / or arctic oil extraction
  4. 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.

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