Australia’s Green Party tables Senate motion for carbon disclosure by AU$104.8bn Future Fund

Senator requests reporting via the Asset Owners Disclosure Project site.

The leader of the Australian Green Party has tabled a motion in the Australian Senate calling on the country’s sovereign wealth Future Fund to disclose its analysis of carbon and climate risks in its investment portfolio. It follows a similar move last week by the UK Green party which is leading calls for a climate and carbon risk analysis of the UK MPs pension fund, and suggests that green political parties worldwide are increasingly challenging public institutions on the C02 exposure of their investments. Senator Christine Milne, who has been leader of the Australian Greens since 2012, has asked Senator Mathias Cormann, the Minister for Finance, to provide a copy of the AU$104.8bn (€71.5bn) Future Fund’s analysis of risks posed by climate impacts and unburnable carbon in its portfolio via the Asset Owners Disclosure Project (AODP) survey by noon on 24 November 2014. The AODP surveys pension, superannuation, insurance and sovereign wealth funds about their carbon data, levels of low carbon investment, engagement with companies on environmental issues and risk management.
The AODP’s survey for 2013/14 ranked Australia’s Local Government Super, VicSuper, AustralianSuper and BT Super for Life in its top ten for managing climate change.But it said that the majority of the world’s retirement funds, insurance companies and sovereign wealth funds are ignoring risks that a carbon bubble could present to their portfolios: Link to article
The AODP called for disclosure from over 1000 asset owners on governing climate and carbon exposure for its 2015 survey at the UN Climate Summit last month.
In the UK, Caroline Lucas, ex-leader of the UK Green Party and the country’s sole Green Party Member of Parliament (MP) is leading calls for the £487m (€615m) Parliamentary Contributory Pension Fund (PCPF), the pension fund for UK MPs, to be transparent about its exposure to climate and carbon risk. A letter to the fund’s chair Brian Donohoe, written by Lucas and co-signed by 12 other parliamentary figures, has prompted the fund’s investment committee to discuss the issue at its next meeting on November 10. Link to RI article
Earlier this month, Future Fund’s managing director David Neal was quoted by Australian media as saying the fund was monitoring new energy technology and changing demands for fossil fuels.