Pressure building on UniSuper to divest from fossil fuels

Michael Evans National Organiser (Media & Engagement)

NTEU’s campaign inviting tertiary education staff to call on the UniSuper Board to divest its funds from the polluting companies fuelling the climate crisis appears to be having the desired effect.

With more than 4,200 people having signed the open letter to UniSuper Board members, we understand that the Directors and investment staff have heard the loud chorus of voices demanding smart, safe investments, and are considering how to respond.

On 30 April the UniSuper Consultative Committee (comprising an equal number of staff-elected and employer-nominated representatives from each university) met to consider UniSuper’s policy and approach to climate change and investment.

This is the largest ever vote in favour of divestment on the consultative committee – and it will only continue to grow.

At the pre-meeting of employee members of the Consultative Committee, over 60% of employee representatives adopted NTEU's goal of fossil fuel divestment by 2030.

When this resolution was put to all members of the Consultative Committee, it was narrowly lost because of the weight of the universitynominated representatives voting as a bloc. However, some 35% of all Committee members supported our 2030 goal.

This is the largest ever vote in favour of divestment on the Consultative Committee – and it will only continue to grow.

The meeting was told that, by the end of 2021, UniSuper's fossil fuel investments will be significantly further reduced. The pressure from this campaign is adding to the momentum for full divestment from these investments.

The next steps in the campaign will be to leverage the pressure applied by fund members in seeking UniSuper’s commitment to our campaign objectives:

• Commit that by no later than 2030 all invested funds and superannuation products will be fossil fuel free.

• Commit to designating a sustainable investment option to be the default Accumulation superannuation option.

• Establish by the end of 2021 a sub-committee (including stakeholder representation) to advise the Board of UniSuper on ethical, social and governance matters generally including a specific remit on the sustainability of UniSuper investments.

• Actively support and advocate for all shareholder resolutions that are consistent with these objectives in the companies where UniSuper is a shareholder.

• Report to UniSuper members and stakeholders every six months on progress achieved in reducing reliance on fossil fuel and carbon intensive investments.

'Our superannuation is there to protect our future and quality of life in retirement,' NTEU National President Dr Alison Barnes said on the day the campaign was launched.

'A growing number of tertiary education staff, economic experts and climate scientists are concerned that billions of dollars of our retirement savings are being invested by UniSuper in industries which put our savings – and the future of our planet – at risk.'

'The world – and the smart money – is moving away from the ‘stranded asset’ risks associated with coal, oil and gas.'

'We know from UniSuper's disclosures that at least 10% of its Australian share investments are in companies undermining the Paris Climate Accord, including BHP, Woodside and APA. That’s billions of our dollars funding the climate crisis.'

'If we can help move UniSuper to make better choices, we can protect our ecological and economic security in retirement.'

If you haven’t already sent a letter to the UniSuper Board, go to the campaign site to do so.

We hope the campaign can result in UniSuper becoming one of or even perhaps Australia’s premier superannuation provider of environmentally sustainable superannuation.