Key facts
- AustralianSuper, Australia's largest superannuation fund, has become the single biggest investor in coal miner Whitehaven Coal.
- This investment reverses a previous divestment made by AustralianSuper in line with its net zero emissions pledge.
- The fund's stake in Whitehaven Coal is valued at over $600 million.
- AustralianSuper cited market valuation and exposure to metallurgical coal as reasons for the investment.
- Critics argue the investment contradicts the fund's climate commitments and signals a focus on investment returns over climate risks.
- The fund is also a major shareholder in oil and gas company Woodside Energy.
AustralianSuper, the country's largest superannuation fund, has significantly increased its investment in coal miner Whitehaven Coal, becoming its largest shareholder. This move has drawn criticism from climate advocates and academics, who question the fund's commitment to its 2020 net zero emissions pledge aligned with the Paris Agreement. The fund had previously divested from Whitehaven Coal.
AustralianSuper stated that the energy transition is not linear and that the investment in Whitehaven was driven by its market valuation and exposure to metallurgical coal, essential for steel production. However, critics argue this focus on investment returns overlooks broader climate-related risks and sends a permissive signal to other funds regarding fossil fuel investments.
Experts like Geoff Warren from the Australian National University expressed surprise at the investment, suggesting it prioritizes financial opportunity over climate goals. Naomi Hogan of the Australasian Centre for Corporate Responsibility emphasized the need for super funds to better assess companies' emissions plans and noted the risk of passive approaches hindering stronger climate action.
Market Forces, a climate activist group, criticized AustralianSuper's voting record and its support for Whitehaven Coal's executive pay structure, which they claim incentivizes coal growth. The group also pointed to AustralianSuper's recent rebuilding of its stake in Mineral Resources, a company previously divested due to governance issues, as another controversial investment.
Australian Ethical, which excludes fossil fuel companies like Whitehaven and Woodside Energy from its portfolios, stated that investing in such companies is not complicated. Their research indicates that a majority of Australians want their superannuation funds to avoid environmental damage.