Australian Retirement Funds Increase Investment in Traditional Energy Companies by 100%
Despite the push towards net zero, superannuation funds are still heavily investing in oil, coal, and gas interests.
Despite an Australian government push towards net zero by 2050, a recent report shows that leading superannuation funds have almost doubled their investments in gas, coal, and oil interests since 2021.
Between 2021 and December 2023, Australia’s 30 largest retirement funds increased their investment in traditional energy companies from $19 billion to $39 billion (US$25.93 billion).
In contrast, investments in green energy solutions decreased by half a billion during the same period, totaling $7.7 billion.
Market Forces, an advocacy group, conducted the report to assess whether super funds align with climate change goals in their investments.
The report identified Woodside Energy, Santos, and Whitehaven Coal as Australia’s largest emitters, responsible for 59 percent of projected emissions.
Market Forces spokesperson Brett Morgan stated, “Thousands of members are upset that major funds like AustralianSuper, Australian Retirement Trust, and HESTA are not curbing the environmentally damaging business plans of companies like Woodside.”
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Market Forces lists 190 companies worldwide on its website that contribute to climate change.
The group claims that an average of 9 percent of a super fund’s members’ contributions are supporting companies that drive us towards catastrophic climate change.
This has led to allegations of “greenwashing,” where companies make false claims about their environmental efforts.
The super funds most exposed to fossil fuel companies include UniSuper (11.5 percent), Commonwealth Super Corp (10.8 percent), and MLC (10.4 percent).
In 2022, AustralianSuper significantly increased its investment in Woodside, contradicting its public statements on climate accountability.
However, ESSSuper (6.6 percent), Aware Super (6.6 percent), and NGS Super (6.7 percent) are considered the least exposed to traditional energy companies.
Greenwashing Concerns
The issue of greenwashing has prompted regulatory bodies like the Australian Securities and Investments Commission (ASIC) to take action.
In 2023, ASIC fined superfund Mercer $11.3 million for misleading members about the sustainability of its investments.
Some companies use carbon offsets to avoid setting emissions targets, while some super funds are urging companies to invest more in renewable energy sectors.
