Fossil fuel investments and disclosure

‘Fossil fuel free’ is the percentage of an option’s equities (company shares) portfolio that we know to be invested in companies that are not directly involved in the fossil fuel industry. This is based on the equities holdings that have been disclosed by each fund, so funds that disclose more will have higher ‘known fossil fuel free’ values.

‘Not disclosed’ is the percentage of an option’s equities portfolio that is invested in companies that have not been disclosed by the fund.

‘Fossil fuel companies’ are those with substantial involvement in fossil fuel extraction.

‘Diversified fossil fuel companies’ are those with significant fossil fuel exposure including infrastructure, utilities, transport and diversified companies where fossil fuels constitute a relatively minor part of revenue or net asset value.

Percentages may not add to 100% due to rounding.

For more information about the exposure calculations, please see the Super Switch methodology page.

Exclusions

Methodology:

  • None = No explicit fossil fuel exclusions
  • Minimal = Explicitly excludes investments in companies involved in some coal, oil or gas, but allows investments in the majority of fossil fuel companies
  • Some = Explicitly excludes investments in companies with material exposure to most coal, oil and gas activities, or manages all equities to a low carbon benchmark
  • Comprehensive = Explicitly excludes investments in all companies with exposure to any coal, oil and gas activities

Calling for Paris-alignment

At Whitehaven Coal’s October 2018 Annual General Meeting, the vast majority of Australian super funds had the opportunity to vote on a resolution expressing an opinion that Whitehaven should align its strategy with the Paris climate goals. The funds we know voted for that resolution have been marked as ‘YES’ on this metric, while those we know do not hold Whitehaven have been marked as N/A.

Climate Voting Record

The percentage of disclosed votes on climate-related shareholder resolutions that were cast in favour of positive climate action. Taken from Market Forces’ April 2017 study Voting Against Climate Action, which included Australia’s 50 largest superannuation funds.

Scenario Analysis

Scenario analysis is an important tool for funds to measure their exposure to climate change risk under different climate action scenarios, including ones in which the goals of the Paris Agreement are met. Funds should conduct and disclose detailed scenario analysis, providing quantified estimates of value at risk to their portfolios under different climate change scenarios, including one in which warming is held to 1.5°C.

Methodology:

  • None = No publicly disclosed climate change scenario analysis
  • Limited = Disclosure that provides some description of the exposure to climate risk a fund faces under different scenarios, but without quantitative information that allows the public to assess the extent of risk faced
  • Partial = Disclosure of scenario analysis that considers a range of scenarios (including a 1.5°C scenario), provides quantitative data, but does not cover all fund holdings
  • Detailed = disclosure of scenario analysis that considers a range of scenarios (including a 1.5°C scenario), provides quantitative data, and covers the fund’s holdings comprehensively