Industry superannuation fund, NGS Super, has announced it will divest from oil and gas exploration and production companies such as Woodside and Santos.
The divestment of approximately $191 million from various Australian and international equities including Woodside and Santos (as at 31 May 2022) had been redistributed to other holdings within the fund’s equities portfolio.
As well as oil & gas, it was also actively restricting holdings in companies generating more than 30% of revenue from distribution, power generation or thermal coal extraction.
The fund said divestment was the best way for it to demonstrate its commitment to provide a carbon-neutral portfolio for members by 2030.
NGS Super chief investment officer, Ben Squires, said: “To solve climate change, we need to rapidly transition to energy sources that don’t emit carbon and methane into the atmosphere. At NGS Super we’re making bold moves to protect our members’ long-term investment returns and their future.”
“We’re not a ‘mega-fund’, but with over $13 billion in funds under management, we can have a positive impact for our members and our planet. We’re walking the talk when it comes to building a brighter and more sustainable future for our members.”
Squires said he was aware there could be short-term rallies in the oil price, as evidenced recently by geopolitical tensions and supply chain constraints, and that the fund had taken these into consideration when it decided to divest.
“We take these considerations into account when constructing portfolios to make sure we participate in these rallies through other portfolio completion strategies. In the long term, the weight of evidence we collect calls for immediate action which goes beyond the political environment and seeks to invest in a sustainable future for generations to come, regardless of race, religion or country.”
