Super funds fail to act on carbon disclosure

Many superannuation funds may not be putting their money where their mouth is when it comes to environmental, social and governance (ESG) issues.

Australia’s first climate change resolution was defeated yesterday at the annual general meeting of energy company Woodside, with the majority of super funds failing to back the resolution.

The resolution sought to mandate board disclosure of carbon price assumptions and was brought to the board by the Climate Advocacy Shareholder Group, a group of 109 shareholders with 12 shares each.

The Climate Institute’s business director, Julian Poulter, said it was disappointing to see that some super funds that claim to have strong environmental credentials did not support the resolution.

“Even more disappointingly, some super funds who are signatories to the Carbon Disclosure Project which advocates this kind of disclosure did not ‘walk the talk’ and voted against the resolution,” Poulter said.

The resolution received key support from the Australian Council of Superannuation Investors, which recommended that its members support the resolution.

It was also supported by major super funds including Local Government Super and industry super fund MTAA.

Australian Ethical Investment executive director James Thier said this was a positive result for the group.

“While we are disappointed that more Australian super funds didn’t vote in favour, the resolution received support from a number of influential investors, advisers and investor groups,” he said.

“This was Australia’s first climate change resolution – though I have no doubt that it will not be the last.”