Retirement
Are super funds taking climate change seriously?
Despite APRA regulations requiring super funds to provide evidence of their climate change considerations, a new report has found many have not done so – placing them at risk of legal action.
Are super funds taking climate change seriously?
Despite APRA regulations requiring super funds to provide evidence of their climate change considerations, a new report has found many have not done so – placing them at risk of legal action.
The report, from environmental group Market Forces, found 82 of the 100 largest super funds have provided “inadequate or no tangible evidence” they have considered climate risk in their investment portfolios.
Market Forces also sought legal opinion from Noel Hutley SC and James Mack, who found the failure to address climate risk put trustee directors “at risk of breaching their duty to members”.
In a speech on 17 February, Geoff Summerhayes (an executive member of the APRA) said climate risks were becoming “an important and explicit part of our thinking” and that super trustees who failed to disclose the risks climate change posed to their business could be “held personally liable” for breaching regulations.
The Market Forces report found that when considering 99 per cent of all large superannuation fund assets, only 18 out of 100 funds were found to have provided adequate evidence of their consideration of climate risks.
Daniel Gocher, an analyst for Market Forces, said the report’s findings were “extraordinary”.
“More than 80 per cent of Australia’s super funds have still failed to disclose how they are managing an issue that APRA has singled out as an immediate, material, financial risk,” Mr Gocher said.
“Australian regulators have made it clear that super funds need to assess climate risk.
“Since this has largely fallen on deaf ears, it’s no surprise that trustees now find themselves open to legal action for a dereliction of basic fiduciary duty.”
Of the 18 funds found to be up to scratch, only nine were providing their members with “limited” regular research or updates on climate risk.
Though less than one in five super funds were found to disclose climate risk consideration, Mr Gocher attributed this to the slow-moving nature of the industry.
“You can call it group-think: someone doesn’t want to be the first to move, doesn’t want to be the last to move, you just want to go together,” he said.
RELATED ARTICLES
Superannuation
Survey reveals Australians' reliance on superannuation for retirement
A new survey by AustralianSuper has found that only 32% of Australians believe they could save for retirement without compulsory superannuation. Read more
Superannuation
AMP launches national campaign to boost super engagement
AMP has unveiled a new national advertising campaign aimed at encouraging Australians to engage more actively with their superannuation. Read more
Superannuation
AustralianSuper urges action on gender pay gap for Equal Pay Day
AustralianSuper, Australia's largest superannuation fund, is calling for increased focus on the gender pay gap and its long-term impacts on women's retirement savings this Equal Pay Day, August 19. Read more
Superannuation
AMP advisers focus on super contributions and home ownership queries
Financial advisers are prioritizing assistance with superannuation contributions, transfer balance caps, death benefits, and home ownership issues, according to recent data from AMP Advice. Read more
Superannuation
Aware Super reports strong 11.02% return for flagship investment option
Aware Super, one of Australia's largest superannuation funds, has announced an 11.02% return for its High Growth accumulation option in the 2024 financial year. Read more
Superannuation
Retirement savings strategies: How to boost your superannuation
Superannuation is a pivotal part of retirement planning in Australia, offering a tax-effective way to save for your later years. As you navigate through your working life, enhancing your ...Read more
Superannuation
Aware Super takes on Australia's gender retirement gap, aiming for financial equality
Aware Super, one of Australia's largest superannuation funds with a 70 per cent female membership, is on a mission to close the gender gap that sees women retire with 30 per cent less super than men ...Read more
Superannuation
Age Pension increase prompts Australians to review their finances
The increase in the Age Pension, which takes effect today, should serve as a prompt for many older Australians to ensure they're maximizing their income as cost-of-living pressures persist, according ...Read more
Superannuation
Survey reveals Australians' reliance on superannuation for retirement
A new survey by AustralianSuper has found that only 32% of Australians believe they could save for retirement without compulsory superannuation. Read more
Superannuation
AMP launches national campaign to boost super engagement
AMP has unveiled a new national advertising campaign aimed at encouraging Australians to engage more actively with their superannuation. Read more
Superannuation
AustralianSuper urges action on gender pay gap for Equal Pay Day
AustralianSuper, Australia's largest superannuation fund, is calling for increased focus on the gender pay gap and its long-term impacts on women's retirement savings this Equal Pay Day, August 19. Read more
Superannuation
AMP advisers focus on super contributions and home ownership queries
Financial advisers are prioritizing assistance with superannuation contributions, transfer balance caps, death benefits, and home ownership issues, according to recent data from AMP Advice. Read more
Superannuation
Aware Super reports strong 11.02% return for flagship investment option
Aware Super, one of Australia's largest superannuation funds, has announced an 11.02% return for its High Growth accumulation option in the 2024 financial year. Read more
Superannuation
Retirement savings strategies: How to boost your superannuation
Superannuation is a pivotal part of retirement planning in Australia, offering a tax-effective way to save for your later years. As you navigate through your working life, enhancing your ...Read more
Superannuation
Aware Super takes on Australia's gender retirement gap, aiming for financial equality
Aware Super, one of Australia's largest superannuation funds with a 70 per cent female membership, is on a mission to close the gender gap that sees women retire with 30 per cent less super than men ...Read more
Superannuation
Age Pension increase prompts Australians to review their finances
The increase in the Age Pension, which takes effect today, should serve as a prompt for many older Australians to ensure they're maximizing their income as cost-of-living pressures persist, according ...Read more
