Home > Super funds are slowly moving on climate action – are your retirement savings still invested in climate destruction?

Super funds are slowly moving on climate action – are your retirement savings still invested in climate destruction?

6 October 2020

6 October 2020

2020 has seen some significant shifts in how super funds are dealing with climate change and the risks it poses, resulting in hundreds of millions of dollars being withdrawn from some of Australia’s dirtiest companies. Millions more Australians no longer have their retirement savings invested in these companies that are actively undermining the Paris climate goals.

However, it’s still a matter of ‘not enough super funds, and not enough divestment’. In this post we’ll talk you through some of the major changes this year and what we’ve learned as we aim for widespread and comprehensive fossil fuel divestment.

Take action – Tell your super fund to take the lead on climate action, or risk losing you as a member.

Importantly, we’ve seen some of the biggest super funds in the country release new climate policies in the last six months. Three of the largest 15 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.

If your fund hasn’t taken this most basic first step is clearly being left behind. And ‘left behind’ isn’t a place where super funds want to be when it comes to managing climate risk – just ask Rest Super, which is facing lawsuit on this very issue!

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.

Take action

Where does your super fund stand?

Top 40 super funds
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

Read the methodology and information about these tables

What we’ve learned and how it can help shift your super fund

  1. Member pressure is powerful. Start by contacting your fund on this page, and we’ll work with you and other members to ramp up the pressure!

Major recent improvements in super funds’ approaches to climate change have come after members have stepped up their calls for action. 

We want to help you drive the next wave of fossil fuel divestment, so once you’ve taken the first step of contacting your fund through the form on this page, we’ll get in touch to find out how the fund responded and discuss plans to increase the pressure. You can also amplify the impact of your action by sharing it on social media, and encouraging friends, family, and anyone who will listen to join you in taking action.

The Market Forces-led UniSuper Divest campaign has seen more than 12,000 members join the call for their fund to dump dirty fossil fuel investments since January 2020. While the fund’s response so far leaves plenty of room for improvement, the campaign has already brought about divestment from thermal coal mining companies and a net-zero 2050 commitment.

Similarly, the recent Hesta and Aware Super climate policy shifts followed thousands of members engaging in campaigns run by Market Forces, Healthy Futures, and Doctors for the Environment Australia. Members of industry super funds will have many fellow members among your colleagues and wider industries. That leaves you perfectly placed to spread the word and build a groundswell of members calling on a fund to divest fossil fuels. 

We also know thousands of super fund members have made the decision to ditch their fund over climate inaction, choosing to shift their retirement savings to a fund that won’t invest their money in the coal, oil and gas companies that are undermining our chances of a stable climate future.

Join the thousands of super fund members taking action to align their retirement savings with their values

  1. Some funds are finally realising engagement with pure fossil fuel companies is futile. Has your fund shifted its thinking?
Some super funds have finally realised trying to influence companies through engagement doesn’t work when the company has no interest in doing anything other than digging up and selling as much coal as possible.

While there is plenty more work to be done to get these funds to apply the same thinking to oil and gas companies, it’s great to see member pressure has helped force funds to rapidly shift their thinking. 

Our Out of Line, Out of Time report identifies the 22 companies that have failed to respond to investor engagement, and continue to actively undermine the Paris goals. You can see how much your super fund invests in these companies and take action on our Super funds table.

If your super fund is still clinging to the idea that it can engage with these companies to address climate change, you need to point out that it is quickly being left behind.

  1. Long term goals can mask near term inaction.

Members are making it very clear to their funds that targets without immediate action to withdraw investment from the most polluting companies and industries are not good enough. As you push your super fund to lift its climate action game, be sure to set this expectation, and beware of long term goals being used to mask near term inaction!

Some funds, including Hesta, Aware Super, Cbus and UniSuper, have set targets to reduce the carbon emissions of their investment portfolios, including ‘net-zero by 2050’ along with some nearer term targets.

These targets are important, particularly those that require near term action (such as Aware Super’s target to reduce portfolio emissions by 30% by 2023), as they will require funds to either force companies to decrease emissions, or reduce their own investment exposure to those companies. This is particularly significant for major carbon polluters like AGL and Origin Energy.

However, super funds’ near-term emission reduction targets do not currently account for the emissions generated by the use of products sold by companies they invest in, known as scope 3 emissions. For example, gas producer Woodside’s scope 3 emissions in 2019 were more than 8 times larger than its operational emissions (scope 1 + 2), but these scope 3 emissions wouldn’t be covered by super funds’ current emission reduction targets.

Tell your super fund it must account for fossil fuels producers’ downstream emissions in any portfolio decarbonisation plans. This must be done by setting targets to reduce exposure to fossil fuel reserves, or putting in place plans to reduce investment in oil and gas producers over time, as Suncorp has done.

Take action – demand a comprehensive coal, oil and gas exit plan from your super fund

Taking it to the next level

One super fund member has also taken the extraordinary step of taking a $50 billion super fund to court. 

Mark McVeigh used Market Forces’ research to find out his super fund, Rest, was falling short of his expectations and lagging other funds on climate change. He has since launched a legal action, claiming the fund has failed to appropriately consider and manage the risks climate change poses to members’ retirement savings.

The case will be heard in early November, so watch this space for a court ruling on how super funds should be acting on climate risk.

Mark McVeigh is suing his super fund, Rest, over its lacklustre approach to climate risk management. Photo credit: Mark Doyle

Read more about Mark’s case.

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.

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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