Many older Australians do not share the concerns of their younger counterparts when it comes to climate change. However, their attitudes might change if they were told that inaction on climate change would negatively affect their superannuation balances. And, according to some experts, that’s exactly what’s about to happen.
The chief executive of HESTA Super, Debby Blakey, is one of the experts who believes balances are at risk. Ms Blakey said that without swift and decisive action towards transitioning to renewable energy, Australia’s economy would suffer. In turn, this would threaten superannuation returns, she said.
To alleviate that threat, Australia must meet the federal government’s target of 82 per cent renewable energy by 2030. But delays in building new generation projects and the slow rollout of transmission developments have left Australia well behind schedule, said Ms Blakey.
This, Ms Blakey believes, will significantly increase the risk of what she refers to as stranded assets. “There’s a risk of a transition that is not orderly.”
Time is running out to achieve that orderly transition, she said. As it stands, Australia will need to double its renewable capacity to attain the government’s 2030 target.
A small fund with a big climate change voice
With assets around the $83 billion mark, HESTA is a relatively small superannuation fund. The figure is not enough to even rank in Australia’s top 10. (Australian Super leads the way with assets of around $311 billion.) But while the fund might be small in size, it has a loud voice on climate. As such, the fund holds minimal stakes in energy companies such as Woodside, Origin and AGL.
This, however, has not stopped HESTA in efforts to influence those companies with respect to climate change. That’s something Ms Blakey believes to be necessary for the good of all funds. “We have never felt that a small holding means we don’t have an opportunity to use our voice and have a seat at the table,” she said.
The fund did just that in April, when it voted against Woodside’s climate plan at the energy company’s AGM. HESTA cited a significant gap between the plan and a 1.5°C transition pathway. The fund also used its stake to vote for Ashok Belani as a board member, and to vote against Woodside’s remuneration plan.
Mr Belani would bring “technology and energy transition experience to the board”, Ms Blakey said. Investing in new energy would produce positive returns in the long run, she stated. “We believe we will get the best returns over the long term by thinking about capital allocation to new energy.”
However, this did not mean turning its back on the mining industry entirely. “Mining investments have a long lead time and specific capabilities,” Ms Blakey said. “To have strong global mining companies that are giving thought to the critical minerals of the future, we see it as outstanding.”
What about your super fund?
Older Australians concerned about climate change might like to check how their super fund’s policy stacks up against HESTA’s. An ABC analysis published in May identified Australian Super and two other top 10 funds – UniSuper and Commonwealth Super Corp – as having significant exposure to companies it termed as “climate wreckers”.
Do you have concerns about climate change? Have you inquired about your super fund’s exposure to energy companies? Let us know via the comments section below.
Also read: Most Aussies don’t know how super works
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Looks like ms Blakely has been brainwashed by Bowen and greenlabor.on the world global chart Australia has one of the lowest emissions contributions. Not per person because of our low populations but per country on the global chart
Australia may have one of the lowest emissions contributions, but, it is STILL contributing. Therefore we DO have the responsibility to reduce those emissions, and be a World Leader.
Thanks to 10 years of inaction by the previous LNP government we are way behind. Fair dinkum its obvious you cant grasp the concept of science. Its nothing about politics its all about science and the understanding what is happening to our climate and yes it is about per person when it comes to measure our emissions.
That’s it, let’s bash LNP. You must be a mate if Albo. Chris Bowen has had every horse he’s promoted break down in a screaming heap. It’s cost every tax payer billions. Personally, I’m glad the LNP didn’t go all out on this money grab. They concentrated on making sure people could put some food on the table and certainly made sure our country was safe and secure. Yes mate you worry about the climate. Me, I will back those that care about keeping the lights on at an affordable price. Those that keep terrorism out of our country. Those that back small business and not let 11000 go to the wall as this ratbag govt has done. I will also back a govt not beholding to unions. Cheers
Real world reality is starting to break through. Forrest is backing off green hydrogen. Shipping port holding paddocks are filling with unwanted Teslas. Suggest the Gore/Thunberg/Bowen mythologists take some advice on the actual impact of CO2 on our atmosphere. Perhaps they will be intellectually brave enough to take on Dr John Nicol’s analysis and finally realise that real physics beats mathematical modelling of “selected” data. Bottom line is that “investment” in unreliable technology is not a good superannuation strategy.
Spot on.
No, I am not concerned about the effects of climate change as there are none of note happening. The reality is that the coal and gas from Australia will continue to support the energy needs in many countries as well as our own for many decades to come.
It is inappropriate for Hesta to try and change the investments of companies such as AGL, Woodside and Origin. These companies are already being forced away from reliable energy generation by politicians and activists. They have scientists and engineers who understand what is really happening in the atmosphere of this planet and it isn’t what the politicians are trumpeting.
One reality of Australia and emissions is that we are naturally beyond “Net Zero” as our geology and flora absorb more CO2 than is produced by human activities.
We are jumping at shadows which is causing extreme disruption to our industries and costs of living as the Minister for Energy pushes idiotic objectives. He is a man who has no formal education in the climate or energy management and it shows almost daily.
The difference between we oldies and the youngsters of today is we see seasonal change for what it is, we have been around long enough to have seen all this before and know not to believe everything Labor politicians and some scientists with an axe to grind try to tell us.
I would much rather my super fund invested in bricks and mortar, not pie in the sky grandiose renewable programs.
Andrew, I am so lucky I do not have 1$ in Hestia.
If I did I would immediately change Super funds.
How has the Board who has responsibility for setting wise direction go along with this woke politics with other peoples money.
Thank goodness I live in WA where we will not suffer blackouts like our East Coast friends will .when people who know how to run a balanced energy system are listened to it will be too late.
cheers