The Gillard Government’s proposed carbon price of $23 per tonne would have a negligible effect on superannuation funds, according to a study commissioned by the Australian Institute of Superannuation Trustees (AIST).
The study – conducted by global environmental research group Trucost – looked into the carbon footprints of the equity portfolios of 14 of the largest superannuation funds.
The research found that for those 14 funds, a carbon price of $23 per tonne would have an overall cost equivalent to 0.8 per cent of the revenue of the companies held.
However, when the portfolios of the funds were considered individually, there was a 46 per cent difference between the smallest and largest carbon footprints.
AIST chief executive Fiona Reynolds said the research would help superannuation funds manage and measure the risks and opportunities that came with a carbon price.
“Super funds, as owners of Australia’s major corporations, need to know how the value of their investments may change under a carbon price scheme,” Reynolds said.
“While the research suggests that a carbon price of $23 a tonne will have only a relatively small impact on super fund revenue, it also points to those funds with a smaller carbon footprint being in the best position as Australia shifts to a low-carbon economy,” she added.
Trucost chief executive Richard Mattison said his company’s research found that carbon costs could hit ASX200 companies that were more carbon-intensive than their peers in six sectors.
“Superannuation investment managers can manage carbon risk by integrating carbon metrics into investment processes and identifying opportunities from companies that are better positioned for a low-carbon economy,” Mattison said.
