Lobby group Market Forces targets AMP, AusSuper, CSC, Aware Super, ART over climate disclosure

Environmental lobby group Market Forces says super funds are failing to use their voting clout to force dirty companies to lift their game.

Market Forces says the five super funds it’s named are misleading members over their green credentials.

Environmental lobby group Market Forces has accused five super funds and their leadership of greenwashing and failing to use their voting power to push big emitters to clean up their act.

In a report published on Wednesday, Market Forces accused Aware Super, AustralianSuper, AMP, Australian Retirement Trust, and Commonwealth Super Corp of greenwashing.

Market Forces alleges the five funds overstate their green credentials to retirement savers, claiming they support net-zero goals but fail to exercise their voting muscle to force dirty companies to clean up their operations.

These funds are alleged to be relying on influencing fossil fuel companies, including Santos and Woodside, by engaging with management to meet climate targets.

But Market Forces said the funds have failed to adopt or implement “effective active ownership practices” across five criteria.

The environmental lobby group, which has previously targeted several retirement savings giants, claims these funds “are legally required to have ‘reasonable grounds’ to believe they will achieve their goals”.

“Super funds and their directors failing in their duties could be engaging in misleading and deceptive conduct,” Market Forces claims.

Market Forces superannuation funds campaigner Brett Morgan said there was “an appalling gap between climate commitments and real action” by these funds.

“This is a slap in the face for members who deserve a safe future to retire into,” he said.

Market Forces said Aware Super had made the most progress of the five funds, but said AMP, Australian Retirement Trust, AustralianSuper and Commonwealth Super Corp “have almost completely failed to demonstrate any of the five identified climate-related effective active ownership criteria”.

Market Forces took its allegations to the super funds, but Mr Morgan said two did not respond.

“It would have been great if the funds, particularly the ones who didn’t respond, were able to point us to more disclosures to suggest that they are aligning with the practices outlined by major responsible investment initiatives,” he said.

“The fact that they haven’t means those disclosures don’t exist or they aren’t public.”

Mr Morgan said funds should be pushing Santos and Woodside “into line with a safe climate future”.

“Super funds relying on active ownership to fulfil their climate commitments but failing to rein in rampant oil and gas expansion plans are greenwashing and exposing themselves to legal action for misleading conduct,” Mr Morgan said.

“Funds must step up to prevent fossil fuel expansion, and divest from companies that fail to respond.”

Market Forces’ latest salvo against the super funds comes after the Australian Securities and Investments Commission launched legal action against super giant Mercer.

Market Forces singled out Mercer in mid-2022 as one of eight sustainable superannuation options holding investments in fossil fuel-related companies.