Super funds failing to engage with fossil fuel companies on net zero

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A new report claims that a lack of “effective engagement” puts funds such as AustralianSuper and AMP at risk of greenwashing litigation.

Five of Australia’s biggest super funds are failing to use their influence over fossil fuel companies they invest in to help drive climate action despite their own ambitious environmental goals, a new report by Market Forces claims.

Market Forces did not specify what level of engagement it would consider satisfactory, however. AustralianSuper had more than 400 direct meetings with ASX300 companies last financial year, with climate change a key topic discussed at more than half. But it said that all five invested in Santos and Woodside – the two largest undiversified fossil fuel companies on the ASX – and had failed to lobby Santos and Woodside effectively to lessen their environmental impact.

None of the funds had publicly identified Santos or Woodside for targeted engagement or disclosed what they expected of the companies.

 

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