The industry fund has called on ASX 300 companies to strengthen priorities around resilience, climate, and gender, while itself facing criticism over fossil fuels.
Industry fund HESTA has urged Australia’s largest companies to sharpen their focus on global resilience, climate change, and gender equality, as the fund steps up its engagement with ASX 300 boards ahead of AGM season.
In its sixth annual letter to company leaders, the fund outlined three priority areas that will shape its stewardship this financial year: climate change and natural capital, gender equality and decent work, and a new emphasis on global resilience.
HESTA CEO Debby Blakey said the outreach is central to delivering strong, long-term returns for its 1.05 million members.
“Our commitment to responsible investing is vital to how we aim to deliver strong, long-term investment performance for our members,” Blakey said.
“We are increasingly focused on global resilience and how companies adapt to both global risks and emerging opportunities, driven by geopolitical conflicts, economic shocks, cybersecurity threats, and transformative technologies such as AI.
“With new risks and opportunities quickly emerging, we encourage companies to ensure their Boards have the right mix of skills to handle these challenges and to plan for a range of future business scenarios.”
Blakey said companies and investors must accelerate decarbonisation and act on biodiversity loss and to use investments to directly engage with company heads to “push for greater climate action and transparency”.
“This year a focus of our climate engagement will be encouraging companies to advocate for ambitious national targets and set strategies aligned with upcoming sector decarbonisation pathways,” Blakey said.
She added that adopting 40:40:20 gender targets across boards, executives, and workforces by 2030 is critical to building sustainable businesses.
“These efforts not only attract and retain talent but also foster innovation, help close the gender pay gap and drive stronger financial performance and economic growth,” Blakey said.
However, this call from HESTA has come amid renewed criticism from members and community groups over its fossil fuel exposure.
According to Market Forces, Amnesty International Australia, the Centre for Non-Violence, and Jesuit Social Services* all took steps to sever or downgrade ties with the fund, citing frustration at what they describe as inadequate climate action and continued support for oil and gas majors Woodside and Santos.
Amnesty had removed HESTA as the default super provider in its enterprise bargaining agreement.
“We could no longer in good conscience continue this relationship and have HESTA as our default fund when they continue to invest in fossil fuel projects,” said Amnesty national director Sam Klintworth.
The Centre for Non-Violence also wrote HESTA out of its default arrangements with CEO Margaret Augerinos stating that climate justice “is not optional”.
“It is an absolute ‘must have’ in an industry that works for social justice and equality,” Augerinos said.
Meanwhile, Jesuit Social Services stopped short of divestment, but formally put HESTA on notice, urging the fund to abandon its support for oil and gas expansion projects.
According to Market Forces’ latest analysis, HESTA’s Balanced Growth option holds more than $2.5 billion in companies expanding fossil fuel projects.
CEO Julie Edwards has called on the industry super fund to “take the next step” and divest the $2.5 billion invested in fossil fuel companies.
Market Forces further criticised the fund for “weak engagement” with Woodside and Santos, with campaign lead Brett Morgan remarking that the fund has “disrespected its one million members” by supporting the Santos climate plan.
“The fund must make its position on Santos and Woodside’s expansion plans clear or risk losing many more members,” Morgan said.
*HESTA has reached out to Super Review following the publication of this article to inform that the actions by Amnesty International, the Centre for Non-Violence, and Jesuit Social Services have already been made public as of June 2023 (Amnesty) and April 2024 (Centre for Non-Violence).
Additionally, the fund has continued to engage with Woodside’s board on capability and governance, while Santos remains on HESTA’s watchlist to observe ongoing targets on the Climate Transition Action Plan voted for in 2025.
