Superannuation funds may be talking the environmental, social and governance (ESG) talk, but when it comes to real action, many have failed to respond.
At the annual general meeting of Woodside energy company, Australia’s first climate change resolution failed to stand up, with the majority of super funds not backing the resolution.
The resolution sought to mandate board disclosure of carbon price assumptions and was brought to the board by the Climate Advocacy Shareholder Group, a group of 109 shareholders with 12 shares each.
The Climate Institute’s business director, Julian Poulter, said it was disappointing to see that some super funds who claim to have strong environmental credentials did not support the resolution.
“Even more disappointingly, some super funds who are signatories to the Carbon Disclosure Project which advocates this kind of disclosure did not ‘walk the talk’ and voted against the resolution,” Poulter said.
The resolution received key support from the Australian Council of Superannuation Investors who recommended that their members support the resolution.
It was also supported by major super funds, including Local Government Super and industry super fund MTAA.
Australian Ethical Investment executive director James Thier said this was a positive result for the group.
“Whilst we are disappointed that more Australian super funds didn’t vote in favour, the resolution received support from a number of influential investors, advisers and investor groups,” he said.
“This was Australia’s first climate change resolution — though I have no doubt that it will not be the last.”
