Superannuation funds with high exposure to fossil fuels could be poisoned by their investments, with new research showing Australians are willing to switch to more environmentally friendly funds.
Research conducted by 350.org found 67 per cent of Australians were willing to change super funds to limit their investments in fossil fuel-related industries.
Australian Ethical managing director, Phillip Vernon, said it was “inspiring” to see a number of major funds announcing plans to reduce their investments environmentally unfriendly industries last month.
“For 28 years we have been the leader in responsible investment in Australia, investing toward a 100% renewable energy future, and we’re encouraged to see a noticeable shift in others,” he said.
“It is expected that fossil fuel divestment will continue to be an upward trend for the industry in the coming years.
“This new study shows us that ignoring the science won’t just harm the planet or cost super investors to lose out in precious retirement savings, it is also going to cost funds their customers as they switch into more sustainable offerings.”
A separate study showed that investment in fossil fuel reduced portfolios has increased by 50 per cent in the past 12 months, with institutional investors also showing a trend towards more responsible investing.
“Some funds will take a simplistic approach to avoiding certain sectors whilst others will apply reasonably high revenue tolerances leaving relatively high exposures to say, coal, where the perception may be otherwise,” Vernon said.
“The industry should move ahead with full transparency of underlying portfolios,” concluded Vernon.
