Climate smart super: understanding superannuation & climate risk

Introduction: There is an emerging awareness of the climate and carbon risks to our superannuation funds but awareness about disclosure, advocacy and active ownership has been patchy. The Climate Institute is at the forefront in examining the assumptions behind such investment decisions and the extent to which climate risk is or is not integrated. This report aims to inform citizen investors and decision makers on the intersection of business, investment and climate change. It lays out why managing climate risk in the context of superannuation matters to you, why you should ask what your fund is investing in and ensure you are comfortable with how your retirement savings are managed. Climate risk is an area of continued and growing interest for The Climate Institute and we expect to produce more reports on this topic in the coming year. This report consolidates analysis and review of the impact of climate and carbon risks on retirement and superannuation savings, especially in Australia. It builds on work The Climate Institute has undertaken with its partner organisation the Asset Owners Disclosure Project (AODP) in asking the world’s largest funds to disclose how much of their investment is in high versus low-carbon assets.It includes the 2013-14 index results, with a focus on the performance of Australian funds. It also looks at the emerging civil economy movement, in the context of fossil fuel divestment campaigns and activism activities such as the AODP’s offshoot, The Vital Few campaign