20 super funds called on to explain investments in energy group Santos
Lobby group Market Forces has co-ordinated a move by 20 super fund members to force their funds to explain investments in energy giants Santos.
Twenty super funds have been hit with letters of complaint from members as part of a campaign organised by environmental lobby group Market Forces, in a push to force the funds to pressure energy giant Santos.
The fund members have lodged complaints with their respective funds, claiming the hundreds of millions of dollars invested in Santos by the super funds is breaching human rights standards.
The letters, lodged by climate litigation firm Equity Generation Lawyers, are part of a campaign backed by Market Forces to put pressure on Santos over its Narrabri and Barossa projects.
Market Forces said Santos’ projects “threaten the spiritual and cultural lives of Indigenous communities”.
“They risk damage to sacred sites, the environment and the livelihoods of Traditional Owners,” the lobby group said.
“The Barossa and Narrabri projects risk spills, pipeline eruptions and devastating impacts on the local environment including clean water, precious wildlife, threatened marsupials, endangered birds, dugong, turtles and other sea animals.”
The funds targeted by the Market Forces campaign include Australian Super, UniSuper, ESSSuper, Equip Super, and the Australian Retirement Trust.
A letter drafted by Equity Generation Lawyers to Australian Super boss Paul Schroder, on behalf of fund member Jan Lacey, warns she is concerned “about the management and financial condition of the fund” and its investments in Santos.
Ms Lacey’s latter calls on Australian Super to provide “information under section 1017C of the Corporations Act” to both her and indigenous communities living in areas that may be affected by the Barossa and Narrabri projects.
This would require the funds reveal their reasons for investing in Santos and explain the benefit to members.
“Collectively, the claimants and the member are concerned that the fund is failing to meet international human rights standards with respect to its investment in the companies,” Equity Generation Lawyers said.
“The failure arises as a result of Santos’ pursuit of major growth projects.”
“Santos’ growth strategy is financially questionable. It has been described by analysts as misguided and reckless, and is the cause of the company’s underperformance and discounted valuation.”
Santos has skirmished with several environmental groups over its proposed Barossa and Narrabri projects.
The Full Bench of the Federal Court ordered the firm to halt exploration drilling in the Timor Sea, as part of its Barossa project, after finding it failed to properly consult with indigenous communities in the area.
The case had been brought against Tiwi Islander Dennis Tipakalippa, who had argued the Santos project had not consulted the Munupi Clan over the spiritual connection it claimed to the sea area in which drilling would take place.
Commonwealth Super Corporation member Catherine Rossiter said the fund should withdraw its investments in Santos “on both human rights ground and on the basis of the environment and climate damage that both the Baross and Pilliga projects will inflict”.
Santos was also targeted by activist investors Snowcap, arguing the gas giant’s growth strategy was delivering lower cash returns and calling on the energy company to prioritise high-return low emissions projects.
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