Latest news with #MarketForces
The Guardian
6 days ago
- Business
- The Guardian
AustralianSuper criticised for buying up shares in Whitehaven Coal while claiming to be committed to net zero
A major Australian superannuation fund is under fire for substantially increasing its investment in the coal company Whitehaven, and being on the brink of becoming its biggest backer, while still claiming to be committed to reaching net zero emissions. Shareholder advocacy groups said AustralianSuper was moving against the trend of its peers with recent share purchases in the company, which they said were 'flying in the face of environmental, social and governance (ESG) commitments'. Clean energy finance organisation Market Forces said the super fund was 'on the precipice' of becoming Whitehaven Coal's largest investor, with shares worth about $395m. Recent disclosures by Whitehaven, first reported by the Australian Financial Review, reveal AustralianSuper now owns 70.9m shares in the company, or 8.47% of shares on issue, after the recent purchases. AustralianSuper is the second-largest shareholder in the coal company and, according to Market Forces, holds nearly triple the combined shares of all of the other top 30 super funds in their default investment options, based on the latest disclosures effective as at December 2024. Market Forces said 'after fully and publicly divesting from the company in 2020', AustralianSuper now held its biggest interest in Whitehaven in 10 years. Sign up to get climate and environment editor Adam Morton's Clear Air column as a free newsletter 'How on earth can AustralianSuper call itself a responsible investor after buying millions of shares in Whitehaven Coal?' Market Forces' senior analyst, Brett Morgan, said. 'AustralianSuper is backing Whitehaven's expansion plans, which would result in nearly 5bn tonnes of carbon pollution from burning coal, equivalent to running all of Australia's coal-fired power stations until 2062.' Morgan said the organisation had been contacted by dozens of AustralianSuper members concerned 'that their fund is greenwashing and endangering a safe future for their retirement'. An AustralianSuper spokesperson said the fund remained committed to its long-term goal of net zero by 2050. 'Whitehaven's acquisition of BHP's metallurgical coal assets changed the company's revenue profile and made it a more attractive investment given their importance in steel making,' the spokesperson said. Metallurgical coal is used primarily to make steel while thermal coal is primarily used for electricity generation. Sign up to Clear Air Australia Adam Morton brings you incisive analysis about the politics and impact of the climate crisis after newsletter promotion 'The energy transition is not linear, which means thermal coal will be an important stabilising source of electricity for the grid for some time to come, both domestically and overseas.' But Naomi Hogan, from the Australasian Centre for Corporate Responsibility, said climate-aware investors across the superannuation sector had been making an effort on ESG and emissions reductions and 'this AustralianSuper move is going against the trend of its peers'. 'Metallurgical coal investing cannot be used to shield against scrutiny of coal,' Hogan said. 'Last year ACCR published research based on a global survey of 500 investors in the steel value chain, which found that 80% of investor respondents believe metallurgical coal's risk profile will increase in the next decade.' Hogan said AustralianSuper, having previously 'talked up' the importance of its companies aligning with the objectives of the Paris Agreement, now has a 'huge amount of work ahead to bring [Whitehaven's] emissions into line'. 'ACCR will be looking closely at AustralianSuper's disclosures outlining its ESG risk assessment of this investment,' she said.
Nikkei Asia
7 days ago
- Business
- Nikkei Asia
Japan's top investors have a duty to back a clean energy future
Women wearing summer kimonos take a break next to a cooling mist at Tokyo's Sensoji temple on July 22, 2024. © Reuters Sachiko Suzuki is Asia climate and energy analyst for Market Forces, a Melbourne-based initiative researching the financing of environmentally destructive projects. Japan faces another scorching summer, but the country's biggest investment companies are stalling the shift to clean energy with the risk of making global warming-fueled disasters worse by pouring billions into new coal, oil and gas development.
7NEWS
04-06-2025
- Business
- 7NEWS
Homeowners warned insurance costs set to soar as policies factor in natural disaster uptick spurred by climate change
Households are being told to brace for higher insurance premiums. The alert from environmental groups warns that the economic impacts of natural disasters will extend beyond the federal budget. Treasury figures show a loss of $2.2 billion from economic activity following Tropical Cyclone Alfred and floods in NSW and Queensland. The impact is expected to be reflected in March-quarter GDP figures to be released on Wednesday. The government's priority was helping fund recovery and rebuilding for communities, Treasurer Jim Chalmers said. 'The human impacts matter to us most, but the economic cost is very significant too, and we'll see that in Wednesday's National Accounts,' he said. 'Because of the progress Australians have made together in the economy, with inflation down, debt down and unemployment low, we're in a stronger position to provide support when communities need it most.' Policyholders are set to pay more for their insurance because of the increasing frequency of severe weather events. Major insurance companies underwriting coal and gas projects were exacerbating the issue, environmental group Market Forces chief executive Will van de Pol said. 'Customers have every right to be ropeable with insurers for the staggering increase in premiums in recent years, especially when the global insurance industry is making the problem worse,' he told AAP. Skyrocketing premiums and refusing to cover climate change risks in some areas should ring alarm bells for policymakers, according to van de Pol, who said the insurance industry was the 'canary in the coal mine' for climate change. Recent flooding in NSW has left 10,000 homes and businesses damaged or destroyed, and the Insurance Council of Australia reported more than 6000 insurance claims. Tropical Cyclone Alfred in March caused widespread damage and flooding to communities across southeast Queensland and northern NSW. Prolonged downpours in southwest and central Queensland flooded a vast area spanning about one million square kilometres. The government's Disaster Assist website lists 27 separate natural disasters from January to May consisting of flooding, storms, cyclones and bushfires. Opposition Leader Sussan Ley travelled to the NSW Mid-North Coast on Monday to visit flood-affected communities with local MPs. Emergency Management Minister Kristy McBain said the government was funding measures to increase resilience, adaptability and preparedness, and the Disaster Ready Fund initiative would provide another $200 million. Multiple disaster payments have been activated, and the federal government will continue working with NSW on any other funding requests, McBain said. The minister said she had been on the ground in disaster areas to see the impact and had been meeting with affected small business and primary producers.
The Advertiser
02-06-2025
- Business
- The Advertiser
Insurance cost warning after disasters hit bottom line
The economic impacts of natural disasters will extend beyond the federal budget, environmental groups warn as households are told to brace for higher insurance premiums. Treasury figures show a loss of $2.2 billion from economic activity following Tropical Cyclone Alfred and floods in NSW and Queensland. The impact is expected to be reflected in March-quarter GDP figures to be released on Wednesday. The government's priority was helping fund recovery and rebuilding for communities, Treasurer Jim Chalmers said. "The human impacts matter to us most but the economic cost is very significant too and we'll see that in Wednesday's National Accounts," he said. "Because of the progress Australians have made together in the economy, with inflation down, debt down and unemployment low, we're in a stronger position to provide support when communities need it most." Policy holders are set to pay more for their insurance because of the increasing frequency of severe weather events. Major insurance companies underwriting coal and gas projects were exacerbating the issue, environmental group Market Forces chief executive Will van de Pol said. "Customers have every right to be ropeable with insurers for the staggering increase in premiums in recent years, especially when the global insurance industry is making the problem worse," he told AAP. Skyrocketing premiums and refusing to cover climate change risks in some areas should ring alarm bells for policymakers, according to Mr van de Pol, who said the insurance industry was the "canary in the coal mine" for climate change. Recent flooding in NSW has left 10,000 homes and businesses damaged or destroyed, and the Insurance Council of Australia reported more than 6000 insurance claims. Tropical Cyclone Alfred in March caused widespread damage and flooding to communities across southeast Queensland and northern NSW. Prolonged downpours in southwest and central Queensland flooded a vast area spanning about one million square kilometres. The government's Disaster Assist website lists 27 separate natural disasters from January to May consisting of flooding, storms, cyclones and bushfires. Opposition Leader Sussan Ley travelled to the NSW mid-north coast on Monday to visit flood-affected communities with local MPs. Emergency Management Minister Kristy McBain said the government was funding measures to increase resilience, adaptability and preparedness, and the Disaster Ready Fund initiative would provide another $200 million. Multiple disaster payments have been activated and the federal government will continue working with NSW on any other funding requests, Ms McBain said. The minister said she had been on the ground in disaster areas to see the impact and had been meeting with affected small business and primary producers. The economic impacts of natural disasters will extend beyond the federal budget, environmental groups warn as households are told to brace for higher insurance premiums. Treasury figures show a loss of $2.2 billion from economic activity following Tropical Cyclone Alfred and floods in NSW and Queensland. The impact is expected to be reflected in March-quarter GDP figures to be released on Wednesday. The government's priority was helping fund recovery and rebuilding for communities, Treasurer Jim Chalmers said. "The human impacts matter to us most but the economic cost is very significant too and we'll see that in Wednesday's National Accounts," he said. "Because of the progress Australians have made together in the economy, with inflation down, debt down and unemployment low, we're in a stronger position to provide support when communities need it most." Policy holders are set to pay more for their insurance because of the increasing frequency of severe weather events. Major insurance companies underwriting coal and gas projects were exacerbating the issue, environmental group Market Forces chief executive Will van de Pol said. "Customers have every right to be ropeable with insurers for the staggering increase in premiums in recent years, especially when the global insurance industry is making the problem worse," he told AAP. Skyrocketing premiums and refusing to cover climate change risks in some areas should ring alarm bells for policymakers, according to Mr van de Pol, who said the insurance industry was the "canary in the coal mine" for climate change. Recent flooding in NSW has left 10,000 homes and businesses damaged or destroyed, and the Insurance Council of Australia reported more than 6000 insurance claims. Tropical Cyclone Alfred in March caused widespread damage and flooding to communities across southeast Queensland and northern NSW. Prolonged downpours in southwest and central Queensland flooded a vast area spanning about one million square kilometres. The government's Disaster Assist website lists 27 separate natural disasters from January to May consisting of flooding, storms, cyclones and bushfires. Opposition Leader Sussan Ley travelled to the NSW mid-north coast on Monday to visit flood-affected communities with local MPs. Emergency Management Minister Kristy McBain said the government was funding measures to increase resilience, adaptability and preparedness, and the Disaster Ready Fund initiative would provide another $200 million. Multiple disaster payments have been activated and the federal government will continue working with NSW on any other funding requests, Ms McBain said. The minister said she had been on the ground in disaster areas to see the impact and had been meeting with affected small business and primary producers. The economic impacts of natural disasters will extend beyond the federal budget, environmental groups warn as households are told to brace for higher insurance premiums. Treasury figures show a loss of $2.2 billion from economic activity following Tropical Cyclone Alfred and floods in NSW and Queensland. The impact is expected to be reflected in March-quarter GDP figures to be released on Wednesday. The government's priority was helping fund recovery and rebuilding for communities, Treasurer Jim Chalmers said. "The human impacts matter to us most but the economic cost is very significant too and we'll see that in Wednesday's National Accounts," he said. "Because of the progress Australians have made together in the economy, with inflation down, debt down and unemployment low, we're in a stronger position to provide support when communities need it most." Policy holders are set to pay more for their insurance because of the increasing frequency of severe weather events. Major insurance companies underwriting coal and gas projects were exacerbating the issue, environmental group Market Forces chief executive Will van de Pol said. "Customers have every right to be ropeable with insurers for the staggering increase in premiums in recent years, especially when the global insurance industry is making the problem worse," he told AAP. Skyrocketing premiums and refusing to cover climate change risks in some areas should ring alarm bells for policymakers, according to Mr van de Pol, who said the insurance industry was the "canary in the coal mine" for climate change. Recent flooding in NSW has left 10,000 homes and businesses damaged or destroyed, and the Insurance Council of Australia reported more than 6000 insurance claims. Tropical Cyclone Alfred in March caused widespread damage and flooding to communities across southeast Queensland and northern NSW. Prolonged downpours in southwest and central Queensland flooded a vast area spanning about one million square kilometres. The government's Disaster Assist website lists 27 separate natural disasters from January to May consisting of flooding, storms, cyclones and bushfires. Opposition Leader Sussan Ley travelled to the NSW mid-north coast on Monday to visit flood-affected communities with local MPs. Emergency Management Minister Kristy McBain said the government was funding measures to increase resilience, adaptability and preparedness, and the Disaster Ready Fund initiative would provide another $200 million. Multiple disaster payments have been activated and the federal government will continue working with NSW on any other funding requests, Ms McBain said. The minister said she had been on the ground in disaster areas to see the impact and had been meeting with affected small business and primary producers. The economic impacts of natural disasters will extend beyond the federal budget, environmental groups warn as households are told to brace for higher insurance premiums. Treasury figures show a loss of $2.2 billion from economic activity following Tropical Cyclone Alfred and floods in NSW and Queensland. The impact is expected to be reflected in March-quarter GDP figures to be released on Wednesday. The government's priority was helping fund recovery and rebuilding for communities, Treasurer Jim Chalmers said. "The human impacts matter to us most but the economic cost is very significant too and we'll see that in Wednesday's National Accounts," he said. "Because of the progress Australians have made together in the economy, with inflation down, debt down and unemployment low, we're in a stronger position to provide support when communities need it most." Policy holders are set to pay more for their insurance because of the increasing frequency of severe weather events. Major insurance companies underwriting coal and gas projects were exacerbating the issue, environmental group Market Forces chief executive Will van de Pol said. "Customers have every right to be ropeable with insurers for the staggering increase in premiums in recent years, especially when the global insurance industry is making the problem worse," he told AAP. Skyrocketing premiums and refusing to cover climate change risks in some areas should ring alarm bells for policymakers, according to Mr van de Pol, who said the insurance industry was the "canary in the coal mine" for climate change. Recent flooding in NSW has left 10,000 homes and businesses damaged or destroyed, and the Insurance Council of Australia reported more than 6000 insurance claims. Tropical Cyclone Alfred in March caused widespread damage and flooding to communities across southeast Queensland and northern NSW. Prolonged downpours in southwest and central Queensland flooded a vast area spanning about one million square kilometres. The government's Disaster Assist website lists 27 separate natural disasters from January to May consisting of flooding, storms, cyclones and bushfires. Opposition Leader Sussan Ley travelled to the NSW mid-north coast on Monday to visit flood-affected communities with local MPs. Emergency Management Minister Kristy McBain said the government was funding measures to increase resilience, adaptability and preparedness, and the Disaster Ready Fund initiative would provide another $200 million. Multiple disaster payments have been activated and the federal government will continue working with NSW on any other funding requests, Ms McBain said. The minister said she had been on the ground in disaster areas to see the impact and had been meeting with affected small business and primary producers.
The Guardian
31-05-2025
- Business
- The Guardian
A guide to greener banking: I divested my personal finances and you can too – here's how
What if your money was quietly fuelling the climate crisis – and you had no idea? If you bank with one of the big four or have retirement savings in superannuation, there's a good chance it is. In Australia, many major banks and most default super funds continue to invest in fossil fuel companies and their coal, oil and gas projects, driving global warming. That's where the global divestment movement comes in. Divestment means shifting your money out of harmful industries and into more ethical, climate-positive alternatives. It's the opposite of investment – you simply pull your capital out of companies or funds that contribute to environmental or social harm. Over the past few years, I've delved into divesting my personal finances and learned some key ways this shift can make a real difference. If you only tackle one area of divestment, make it your super – it's often your largest pool of money beyond property, and too often it's channelled into fossil fuels. The climate lobby group Market Forces estimates $150bn of Australians' retirement savings – roughly $6,200 per member account on average – could be tied up in 190 global companies driving the most climate damage. And such investment is growing, meaning our retirement savings are increasingly being used to create a more polluted world to retire into. One way to find a better option is to use the Market Forces comparison tool. It profiles more than 70 fund options, pinpointing just seven that fully exclude fossil fuels and the so-called 'Climate Wreckers Index' of the world's worst polluters. Using this type of information, I divested from a large Australian super fund which has known investments in fossil fuels and moved to a fund that excludes major polluters such as Woodside, Whitehaven Coal, Santos, Origin and AGL. Justin Medcalf, co-founder of Ethical Advisers' Co-op and Unless Financial, says to beware the 'devil in the detail'. For example, some funds use a tiered threshold screening, which may allow investment in companies earning limited amounts of their revenue from coal mining. 'A lot of investors assume that having a screening process in place means zero exposure to fossil fuels. It can be a rude surprise to discover there is still exposure,' Medcalf says. 'Ultimately, there is no perfect portfolio. For now, it's 'how do we create the best version of something that isn't perfect?'' All four of Australia's big banks – ANZ, Commonwealth Bank, NAB and Westpac – pour billions into fossil fuel projects each year, as do many other major players. In 2021, when searching for my first mortgage, I saw the chance to divest from a big four bank and switch to a more ethical option. I told my broker I wanted a home loan that was both competitive and backed by a bank that doesn't fund fossil fuels. We landed on one of the few with a cleaner track record. To find out where your bank stands, use Market Forces' Compare Banks tool. It includes a 'tell them to stop' button, so you can quickly send a message and easily demand change. That's crucial, says Medcalf. 'A lot of people move their money but don't say anything, so the bank never knows why. A key part of the divestment movement is communicating,' he says. And it works. Just last year, Commonwealth Bank broke ranks and announced it would stop financing fossil fuel companies that don't comply with Paris climate goals. 'That was quite a considerable win and a lot of that is attributed to the divestment movement,' Medcalf says. If you're investing in shares, ETFs or managed funds, beware of greenwashing. Many mainstream investment products – even those labelled 'sustainable' or 'balanced' – still include major polluters. Tools like the Responsible Investment Association of Australasia's certification and the Ethical Advisers' Co-op's Leaf rating can help you find investment products and services that meet high standards of environmental, social and ethical performance. 'We need a mindset shift,' Medcalf says. 'Rather than thinking 'what can I avoid?', think 'what can I actively invest in?' Yes, we want to avoid industries that aren't creating a positive future, but we can also get behind the industries of the future.' And divesting doesn't have to mean missing out financially – it may even boost your returns. RIAA's 2024 Benchmarking Report shows responsible investment funds have outperformed mainstream ones by 3% over 10 years, and 1.5% over five years. For long-term investors, especially those in their 30s and 40s, Medcalf says it makes sense to start factoring in environmental risk. Fossil fuel assets are increasingly seen as vulnerable, with tightening regulations and the growing risk of becoming 'stranded' and unprofitable. If you want to go a step further, consider strategically buying into a polluting company along with fellow shareholder activists who then band together to demand change from the inside. You can get started with as little as $500 using the Sustainable Investment Exchange (SIX) platform. Whether you divest, reinvest or become an activist shareholder, the point is the same: your money is powerful and you can actively choose whether it props up harmful industries or helps build a better future.
