Australian pension funds' move 'mockery' of green goals

SYDNEY — Australia's 30 biggest pension funds increased their investments in key coal, oil and gas producers by 50 percent last year, despite the funds' long-term commitments to net zero carbon emissions, according to environmental activist group Market Forces.

Superannuation or retirement funds raised their investment to more than A$34 billion ($23 billion) in companies most responsible for expanding fossil fuels, the group said.

"Super funds are making a mockery of their own commitments to net zero by buying up wholesale in companies expanding fossil fuels and letting them get away with trashing our climate," Market Forces campaigner Brett Morgan said in a statement.

Some funds have committed to achieving net zero carbon emissions in their investment portfolio by 2050.

Commonwealth Super Corp, AustralianSuper, Australian Retirement Trust, Aware Super and AMP, operators of the five largest funds cumulatively managing more than A$1 trillion, did not immediately respond to Reuters requests for comment.

Market Forces only named AustralianSuper, which it said had increased its stake in Woodside Energy, Australia's top independent gas producer, by about 19 times last year.

In an email response, Australian-Super said it had raised its stake as gas was a key part of an "orderly energy transition" ahead.

"As an active and responsible owner, we will continue to proactively engage with Woodside to understand how the company plans to transition its operations to deliver long-term value to members in a low-carbon environment," a spokesperson said.

There has been active interest from shareholders in oil and gas companies after commodity prices shot up due to the ongoing conflict in Ukraine, which could partly explain the funds' move to up their stake in fossil fuel companies, Market Forces said.

It estimated more than A$140 billion of Australians' retirement savings are invested in fossil fuel companies through the funds, which have more than 9 percent of members' share investments in these firms on average.

Environmental, social and governance issues have increasingly influenced investors in funds and companies.

Last month, a group of Indigenous Australians filed a human rights complaint against 20 large Australian pension funds for investing in two gas projects of Santos Ltd, putting pressure on the funds over their fossil fuel investment plans.

Agencies Via Xinhua