Fund manager Australian Ethical calculates that if the country’s $3 trillion pool of super was put into a climate-friendly fund, it could equal a lower carbon footprint of about 78 million tonnes of carbon per year that is equal to half the household emissions across all of Australia.
On the back of the study, Australian Ethical chief executive John McMurdo said it is an “alarming truth” that most Australians don’t know what their super funds are invested in.
“This means that your money could be supporting companies that completely undermine your values, like those related to climate change,” he said.
“Opening your eyes to where your money is being invested and making a change could be the fastest and most impactful thing every Australian can do, right now, to help solve the climate crisis.
“It can sometimes feel like the fate of our planet rests on individual people taking lots of small actions. But instead of just saying no to using harmful products and services, we can also use our money to remove support for their production in the first place, creating an enormous collective difference.
“And while climate change may be one of our planet’s biggest challenges right now, we’d love to see Australians opening their eyes to the way their money can either help or hinder issues in so many different areas like human rights, gender equality, and animal protections.
“An added bonus is that it doesn’t require making any personal or financial sacrifices. Ethical funds can also be some of Australia’s best performing.”
Australian Ethical has called for investors to move away from carbon-intensive companies which, though it may not immediately stop emissions being produced, could force a positive change in their behavior “or even render them unviable if they continue to pollute at the same levels”.
