POWERED BY MOMENTUM MEDIA
Does AustralianSuper properly assess climate risk?
AustralianSuper member Dylan Quinnell, with Equity Generation Lawyers, has questioned the way the superannuation fund assesses the climate risk of the $1.4 billion it has invested in Vanguard index funds and has requested more due diligence information.
Further to that, Quinnell said that Vanguard had been criticised internationally for failing to manage climate risk and its investments, according to him, “did not appear consistent with AustralianSuper’s net zero commitments”.
“I’m requesting information from AustralianSuper to understand if my fund should be investing in Vanguard’s index funds that do not appear to address climate risk. I’m concerned that AustralianSuper might not be adequately protecting members like myself against the financial risks of climate change,” he said.
“I’m really concerned about climate change and what it means for future generations like my three-year-old son, as climate related extreme weather events like floods and bushfires continue to worsen. Having previously worked in the international humanitarian sector, I know firsthand the immense destruction and hardship that more intense climate-related natural disasters like tropical cyclones and droughts can cause.”
According to Quinnell, a recent report estimated Vanguard, which was the world’s second-largest asset manager with over US$7.2 trillion ($10.2 trillion) in assets, could lose US$3 trillion of investors’ money by 2050 if it did not start taking climate risk seriously.
Despite other investment firms adopting a more sensible climate policy, Vanguard’s stewardship priorities remained unchanged and neither climate nor environment was represented as a primary pillar in their standards of good governance, Quinnell said.
Quinnell would be represented by Equity Generation Lawyers, a law firm that brought Federal Court proceedings on behalf of fund member Mark McVeigh against REST Super alleging it was not protecting investors from climate risk.
David Barnden, principal at Equity Generation Lawyers said: “AustralianSuper recognises climate change as a material issue in its investment portfolio, yet it continues to invest in Vanguard index funds which don’t treat climate change as a financial risk.
"According to analysts, Vanguard is the largest investor in fossil fuels in the world, holding over US$290 billion in fossil fuel investments and 6% of global fossil fuel assets.”
Super Review contacted AustralianSuper and a spokesperson said the fund had no comment on the matter.
Recommended for you
Governor Bullock took a more hawkish stance on Tuesday, raising concerns over Trump’s escalating tariffs, which sent economists in different directions with their predictions.
Equity Trustees has announced the appointment of Jocelyn Furlan to the Superannuation Limited (ETSL) and HTFS Nominees Pty Ltd (HTFS) boards, which have oversight of one of the companies’ fastest growing trustee services.
Following growing criticism of the superannuation industry’s influence on capital markets and its increasing exposure to private assets, as well as regulators’ concerns about potential risks to financial stability, ASFA has released new research pushing back on these narratives.
A US-based infrastructure specialist has welcomed the $93 billion fund as a cornerstone investor.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
Global X GlobalX FANG+ ETF
33.51 3 y p.a(%)
2
Spire Oaktree Opportunities XI Second Close
32.68 3 y p.a(%)
3
DomaCom Lot 21 Chellaston Road Munno Para West SA 5115 Australia
31.62 3 y p.a(%)
4
Spire Oaktree Opportunities XI First Close USD
31.36 3 y p.a(%)
5
Fidante Credit Suisse Global Private Equity
29.60 3 y p.a(%)
