Equity Generation Lawyers has written to QSuper on behalf of two of its members, calling on chairman of the board, Don Luke, to “explain why QSuper has delayed quantifying the fund’s carbon exposure”, “commit to fully disclose all its equity holdings by 31 December 2021” and to “clarify the steps QSuper is taking to achieve net zero emissions across its portfolio, including plans to divest from existing assets”.
“For years regulators have considered climate change to be a material financial risk to super fund investments,” EGL principal David Barnden – who represented Mark McVeigh in the Rest case – said.
“QSuper, like other superannuation funds, must act in members’ best interests. This means comprehensively understanding and managing the financial risks posed by climate change.
“QSuper’s delay in taking steps to understand climate change risk means the trustee may not have the information it needs to protect members from stranded assets in the current transition to a low carbon world. QSuper is well behind acceptable industry practice.”
It comes after 141 QSuper members wrote to the fund in March urging it to “take climate change seriously and divest from high-emitting assets”.
Rest settled the litigation with Mr McVeigh in November last year and promised to strengthen its climate risk management processes.
Neil Griffiths
Neil is the Deputy Editor of the wealth titles, including ifa and InvestorDaily.
Neil is also the host of the ifa show podcast.
