The Greens will on Thursday launch a campaign to get the $85 billion Future Fund to sell its holdings in fossil-fuel industries, starting with coal.
The fund’s energy holdings now total about $3 billion, and are exposed to a ”carbon bubble” as nations shift towards low-carbon fuels, Greens leader Christine Milne said.
The International Energy Agency last year estimated that two-thirds of proven fossil-fuel reserves would have to remain in the ground if the world is to avoid global warming of 2 degrees above pre-industrial levels.
”It’s good for the planet, good for people and good for long-term financial management to get out of coal,” Senator Milne said.
The Greens are hoping to match the success of the anti-tobacco push, which led to the Future Fund deciding in February to dump its $222 million holdings of tobacco-related investments.
The Future Fund ”takes a very serious approach to environmental, social and corporate governance issues”, spokesman Will Hetherton said. However, exiting coal or other fossil fuels ”is certainly not on the current agenda”.
Senator Milne is hoping the campaign will spread to other superannuation funds, mimicking the push among US universities and other institutions to divest fossil-fuel investments.
Tom Swann, a spokesman for Fossil Free ANU, said his university’s council recently discussed plans to set up responsible investment guidelines and will seek public input.
ANU has more than $80 million invested in coal, coal seam gas and other fossil investments out of about $260 million in equities, he said.
“The divestment campaign has really taken off in the USA, with campuses and city governments as large as Seattle and San Francisco dropping their investments in fossil fuels because people understand that if it’s wrong to wreck the climate, it’s wrong to profit from the wreckage,” said US environmentalist, Bill McKibben, ahead of a speech at ANU on Wednesday.
”Divestment had a real impact in the fight against apartheid, something Nelson Mandela and Desmond Tutu recognise, and it’s an important part of tackling climate change.”
