Leading Australian super funds are showing improvement in managing climate change but overall the industry has been slow to act, according to a survey of Australia’s largest super funds.
The Climate Institute and the Australian Institute of Superannuation Trustees (AIST) has released the results from its second annual survey of funds on how they manage, or plan to manage, the risks and opportunities associated with climate change.
“The leading funds are pulling away from the rest of the pack while overall progress in the industry to manage climate risks and opportunities has been slow,” said The Climate Institute's business director, Julian Poulter.
The eight leading funds, AustralianSuper, Cbus, Christian Super, HESTA, HOSTPLUS, Local Government Super, NGS Super and Vision Super, were found to be stronger than their peers in managing their investment managers, having clearer climate change policies and governance, and better identified investments in low carbon assets.
Andrew Barr, policy and research manager at AIST, said he hoped other funds could benefit from the example set by the leading funds.
“Climate change is an area where collaboration serves us better than competition, and we hope the survey itself can now play an important role in starting that collaborative dialogue,” he said.
The survey also found positive signs for engagement in active ownership with 78 per cent of funds showing a high level of willingness to participate in shareholder resolutions relating to climate change.
Only 3 per cent intended to alter their investment management agreements so that they have longer investment horizons despite the G20 Financial Stability Board’s recommendation on preventing future systemic risk.
Nine per cent saw the G20’s recommendations on preventing future systemic risk as having substantial implications for long-term risk management procedures and 38 per cent saw no foreseeable impact.
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