A number of super funds have been recognised for their innovative approach to managing climate change as the majority of retirement nest eggs remain exposed to numerous climate change-related risks.
The eight funds that were recognised by the Climate Institute and the Australian Institute of Superannuation Trustees (AIST) included AustralianSuper, Cbus, Christian Super, HESTA, HOSTPLUS, Local Government Super, NGS Super and Vision Super.
The rankings were determined via a survey of around 32 super funds that measured theirmanagement of climate change. The eight funds 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.
AIST policy and research manager Andrew Barr said it was good to see funds raise the bar in the management of the climate risks that face Australia’s $1.2 trillion super industry.
Climate Institute business director Julian Poulter said despite the progress of some, the Australian industry needed to act fast as internationally there was a trend towards better management of climate change risks and a move towards global regulation.
With the exception of a few leading funds, Australian super funds were still overexposed to climate change-related risks and were not yet taking advantage of the opportunities arising in the new, low carbon asset markets, a joint statement from the Climate Institute and AIST said.
While only 34 per cent of funds had considered the implications of Australia’s delayed transition to a low carbon economy, of those that had considered the issue over 90 per cent believed the delay may be detrimental to long-term returns, it said.
