Fossil fuel divestment gathering pace in Australia, around the world.

Fossil fuel divestment is gathering pace around Australia and the world. More and more individuals and organisations are pulling their investment assets out of companies involved with the exploration, extraction, production or financing of fossil fuels.

The underlying reason is the brutal maths of climate change: to keep global warming within 2℃ of pre-industrial levels – as both scientists and the Paris climate agreement say we must – around 80% of declared fossil fuel reserves need to stay in the ground.

So far, 580 institutions, controlling assets worth about US$3.4 trillion, have divested from fossil fuels. The top four types of divest institutions are faith-based groups, foundations, governments and educational institutions. The pattern in Australia is largely the same.

Read the piece on The Conversation by a Lecturer in International Relations and Environmental Policy at the Australian National University, Luke Kemp -  “The fossil fuel divestment game is getting bigger, thanks to the smaller players.”

AustralianSuper to offer chance to avoid fossil fuels

AustralianSuper to begin offering options on
redirecting investments away from fossil fuels.

Australia’s largest superannuation fund – AustralianSuper – has announced that, from next month, it will offer its members an option that will restrict investments in companies with fossil fuel reserves. The decision will see the fund dump between $190m and $235m worth of fossil fuel stocks.

This is welcome news, as AustralianSuper joins the ranks of dozens of funds that are getting out of fossil fuels. But this is still a far cry from serious climate action, as less than 2% of members will have their fossil fuel exposure partially reduced.

The fund will combine its three existing sustainable investment options, creating a new option with approximately $2 billion of assets under management. However, AustralianSuper manages in excess of $92 billion, so this decision means 98% of their members still have their retirement nest eggs invested in dangerous climate change. Climate change is a systemic risk – it shouldn’t be left to members to opt in or out of the enormous risks it poses to all of us.

Read the RewnewEconomy story - “Australia’s biggest super fund makes start on fossil fuel divestment.”