Fast forward to 2026, and the $388bn fund manager with 3.7 million members is now the single biggest investor in Whitehaven, which operates six coalmines in New South Wales and Queensland and is developing more.<\/p>\n
The investment is one of several that have perplexed many in the superannuation sector, raising questions over whether the industry leader is aligning its investment portfolio with the climate goals it committed to in 2020.<\/p>\n
While most super providers invest in fossil fuels, many heavily restrict their exposure to thermal coal, given it is such an environmentally damaging source of energy.<\/p>\n
There are also concerns that having the country\u2019s most dominant pension fund invest so heavily in Whitehaven \u2013 its stake is worth more than $600m \u2013 makes it easier for other funds to make similar investments.<\/p>\n
Geoff Warren, an associate professor at the Australian National University, said the Whitehaven investment was \u201cnot good optics\u201d for Australia\u2019s largest super fund.<\/p>\n
\u201cI looked at that investment and thought, why did they do that?\u201d said Warren, who is research director at the retirement savings thinktank Conexus Institute.<\/p>\n
\u201cThey must have thought the investment was sufficiently attractive that they were going to invest, and that is a signal to me that the fund is focused primarily on the investment case and overlooking broader climate-related risks.\u201d<\/p>\n
Sign up for the Breaking News Australia email<\/a><\/p>\n An AustralianSuper spokesperson said the manager regularly reassesses investments in the energy and resources sectors, and that \u201cthe energy transition will not be linear\u201d.<\/p>\n \u201cWe invested in Whitehaven because it provided an investment opportunity given its market valuation combined with an expanded and geographically diversified asset exposure to metallurgical coal, which is currently a key component of steel production for the global economy,\u201d the spokesperson said.<\/p>\n Naomi Hogan, the head of engagement and sector strategy at the Australasian Centre for Corporate Responsibility, said super funds needed to better assess the emissions plans of the companies in which they invest.<\/p>\n \u201cSome of Australia\u2019s major super funds have been quite passive in their approach to company stewardship, and there is a risk that this makes it harder for other funds to act strongly and publicly on climate,\u201d Hogan said.<\/p>\n She said some companies\u2019 emissions targets were vague or relied on offsets or unproven technology like carbon capture to get to net zero by 2050.<\/p>\n Research for Australian Ethical found four in five Australians want their super to avoid social harms, including environmental damage. Photograph: Lukas Coch\/AAP<\/p>\n AustralianSuper is also a major shareholder of another fossil fuel company with expansion plans, the oil and gas company Woodside Energy.<\/p>\n According to an Intergovernmental Panel on Climate Change report following the landmark 2015 Paris agreement, greenhouse gas emissions from existing fossil fuel infrastructure<\/a> are more than enough to push the world beyond its climate goals, let alone develop new sources.<\/p>\n A Whitehaven spokesperson declined to comment. The company\u2019s sustainability report said that Whitehaven supports the Paris agreement, \u201cacknowledging the paradox that coal and fossil fuels also play a critical role in the transition to a lower-carbon future\u201d.<\/p>\n Super funds typically align their investments to the interests of their member base and the direction provided by those in charge of the fund, which helps explain the very different approaches in the industry.<\/p>\n AustralianSuper\u2019s member base is so large it arguably represents the general population.<\/p>\n In a report by Lonergan Research, commissioned by fund manager Australian Ethical, four in five Australians surveyed wanted their super to avoid social harms, including environmental damage.<\/p>\n Australian Ethical\u2019s chief impact and ethics officer, Alison George, said the question of whether super funds should invest in thermal coal and fossil fuel expansion wasn\u2019t complicated.<\/p>\n
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