UniSuper’s climate plan leaves a “loophole big enough for an oil tanker to sail through”, according to Market Forces.
UniSuper recently updated its climate change policy which included three approaches to managing climate risks via investing, engaging, and collaboration, and detailed short and medium-term targets to support its longer-term objectives.
However, Market Forces said it fell short of its promise to prove itself as an industry leader on climate change.
The organisation’s asset management campaigner, Will van de Pol, pointed to the industry super fund’s commitment that said it would ensure its investment portfolio reached net zero carbon emissions by 2050 and would contribute to a 45% reduction in Australia’s emissions by 2030, including targeting an absolute reduction in its portfolio emissions “where practical”.
“Frankly, UniSuper’s 2030 emissions plan leaves a loophole big enough for an oil tanker to sail through,” he said.
Under its investing approach the industry super fund said it would apply a shadow carbon price to material investments it expected to hold for the medium to long term.
Market Forces noted it did not provide details of the carbon price that would be used, or how and when it would be reviewed and increased over time.
While the fund also said it would divest from companies that derived over 10% of its revenue from thermal coal, Market Forces said UniSuper provided no commitments, strategies, or targets to drop other fossil fuel investments. This included major Australian oil and gas producers Woodside, Santos, Oil Search and Origin which it said were demonstrably consistent with the failure of the Paris Agreement.
Market Forces said it was also “confused” by the super fund’s commitment that 100% of its material, active, in-house Australian investment companies would have Paris-aligned operational commitments by the end of 2021.
“Given many fossil fuel producers UniSuper invests in have expansion plans that are totally inconsistent with the Paris climate goals, the fund must be anticipating these companies will announce plans to wind down production in line with the Paris goals, or else the fund is heralding significant divestments in the coming year,” van de Pol said.
Increased regulatory reform and competitive pressures have meant most corporate funds are struggling to meet the scale required to survive, according to an industry professional.
The final draft of the $3 million super tax legislation remains unchanged and will include the taxing of unrealised gains and no indexation.
Amid Australians’ growing penchant for seamless digital experiences, an industry professional believes the most successful superannuation funds will be looking to leverage technology for their members in a number of ways.
The central bank has announced its latest rate decision amid stubborn inflation and increasing geopolitical tension.
Add new comment