A new analysis from environmental finance group Market Forces has reportedly discovered that AustralianSuper is on the brink of becoming the largest investor in Whitehaven Coal, thus breaching ESG commitments.
Available disclosures have shown that Whitehaven Coal indicated that the super fund owns 8.47 per cent of shares on issue, equivalent to 70.9 million shares and is close to taking over Vanguard (which holds 6 million more shares than AustralianSuper) as its top shareholder.
According to Market Forces’ analysis, AustralianSuper holds five times the amount of shares in Whitehaven Coal than any of the top 30 Australian super funds have held in their default investment options since portfolio holdings disclosures commenced four years ago.
Senior analyst at Market Forces, Brett Morgan, lambasted the super fund over its shareholding volume, questioning how AustralianSuper can “call itself a responsible investor after buying millions of shares in Whitehaven Coal?”
“AustralianSuper is backing Whitehaven’s expansion plans which would result in nearly 5 billion tonnes of carbon pollution from burning coal, equivalent to running all of Australia coal-fired power stations until 2062.
“There’s growing outrage among AustralianSuper members that their fund is greenwashing and endangering a safe future for their retirement,” Morgan said.
However, in a statement provided to InvestorDaily, an AustralianSuper spokesperson assured that the fund remains committed to its long-term goal of net zero by 2050.
“Whitehaven’s acquisition of BHP’s metallurgical coal assets changed the company’s revenue profile and made it a more attractive investment given their importance in steel making.
“The energy transition will not be linear and we regularly reassess investments in the energy and resources sectors in their ability to deliver value for members,” the spokesperson said.
AustralianSuper had rekindled its investment in Whitehaven Coal in May this year after its initial divestment in 2020 as part of its commitment to a net zero target by 2050, a move the fund’s ESG director Andrew Gray said was “about good investment practice”.
At the time of the investment’s resumption, Whitehaven Coal disclosed that AustralianSuper had acquired a 5.07 per cent stake (42.4 million ordinary shares).
Morgan called out AustralianSuper to use its increased stake to “demand Whitehaven ends its polluting coal expansion plans and returns capital to shareholders through a wind down strategy”.
“Dozens of members have been contacting Market Forces to ask what can be done to see AustralianSuper end its financial support for coal expansion,” he said. “AustralianSuper now has shares worth $395 million in Whitehaven Coal, supporting the expansion of harmful coal projects that are undermining global climate goals.”
