Super funds warned — factor in carbon risk
Superannuation fund trustee/directors need to take greater account of carbon risks in their investment decisions, according to Norwegian chair of the Principles for Responsible Investment (PRI), Martin Skancke.
Speaking during a panel discussion at the Association of Superannuation Funds of Australia annual conference, in Brisbane, Skancke said that climate change could not be ignored as an investment issue and that mispricing was occurring in circumstances where no one owned the atmosphere but it was being used by everyone to store CO2.
He said this in turn created a very misleading picture of many of the companies in which super funds chose to invest in because it was sending a very wrong price signal to the companies themselves.
Skancke said that funds needed to factor in the risk to those carbon-related companies that their positions will be significantly affected when governments finally reach a viable policy position.
"We have a carbon-based energy system that is unsustainable in its present form," he said.
Skancke said that, ultimately, the risks flowing from exposure to carbon fuels would impact more than just the direct investors and there was a need for investors to factor in what they would ultimately to.
Recommended for you
Australia’s largest super fund, AustralianSuper, has announced multiple additions to its executive leadership team to focus on global growth and innovation.
Super Review rounds up last month’s biggest people moves in the superannuation industry, including a new fund chair and a private markets head.
Investment returns for the Future Fund hit a milestone in September, adding $200 billion in value for the first time ever.
Australia’s largest super funds have deepened private markets exposure, scaled internal investment capability, and balanced liquidity as competition and consolidation intensify.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
DomaCom DFS Mortgage
225.31 3 y p.a(%)
2
Loftus Peak Global Disruption Fund Hedged
120.73 3 y p.a(%)
3
Global X 21Shares Bitcoin ETF
72.47 3 y p.a(%)
4
Paradice Australian Mid Cap A
69.09 3 y p.a(%)
5
Global X Ultra Long Nasdaq 100 Complex ETF
61.94 3 y p.a(%)
