Climate change inactivity hindering super asset allocation

5 October 2021
| By Laura Dew |
image
image
expand image

The superannuation industry should not be forced to fund the transformation of “dirty industries”, according to Australian Ethical, while the country sits on the climate change sidelines.

The COP26 summit was approaching in Glasgow in November but it was unsure whether Prime Minister Scott Morrison would be in attendance. Australia had also failed to commit to a net-zero policy in line with global agendas.

John McMurdo, chief executive of Australian Ethical, said the lack of activity by politicians was a “national embarrassment” and that they were on “the wrong side of history”.

“It’s taken far too long for the coalition government to finally acknowledge that immediate action is required by Australia to do its part for the climate crisis,” McMurdo said.

“It’s also a shame that so many laggard politicians seem intent to remain on the wrong side of history on this issue.

“It’s time to end our national embarrassment when it comes to climate action and support the fossil fuel industry.”

He said investors needed climate-change friendly investment options domestically as Australian Ethical had been forced to look offshore.

“We reject Josh Frydenberg’s suggestion that banks, super funds and insurers should lend to so-called dirty industries to help them transform,” McMurdo said.

“We should not pour money into legacy industries that don’t have credible transition plans in hopes they change of their own volition.

“At the moment, global markets are downgrading Australia based on climate risk and even local investors like been forced to look offshore for investments in climate-friendly industries. This needs to stop.

“If we want Australia to flourish with trillions of investments from asset allocators like Australian Ethical, the superannuation industry and global institutional investors, we need policy certainty on climate.”

Read more about:

AUTHOR

Recommended for you

sub-bgsidebar subscription

Never miss the latest developments in Super Review! Anytime, Anywhere!

Grant Banner

From my perspective, 40- 50% of people are likely going to be deeply unhappy about how long they actually live. ...

1 year ago
Kevin Gorman

Super director remuneration ...

1 year ago
Anthony Asher

No doubt true, but most of it is still because over 45’s have been upgrading their houses with 30 year mortgages. Money ...

1 year ago

The future of superannuation policy remains uncertain, with further reforms potentially on the horizon as the Albanese government seeks to curb the use of superannuation ...

16 hours ago

Super funds had a “tremendous month” in November, according to new data....

4 days 15 hours ago

Australia faces a decade of deficits, with the sum of deficits over the next four years expected to overshoot forecasts by $21.8 billion....

4 days 20 hours ago