In a statement released on Friday, Future Super claimed it has become the "world's first climate neutral pension fund" by offsetting its carbon exposure.
Future Super used Zurich-based carbon analytics and offsetting firm South Pole Group to compensate for the emissions in its portfolio.
The carbon footprint of Future Super's investments, as at 30 June 2015, is 7.5 times less than the carbon footprint of the Australian Securities Exchange, said the statement.
"Future Super screens out investments in fossil fuels and other carbon intensive companies (amongst other ethically questionable industries). The companies left over though still have a carbon footprint (through their use of electricity for example). These emissions have been calculated and offset," said the statement.
"While some super funds have made commitments such as signing the Montreal Carbon Pledge, Future Super has gone further by being both fossil fuel free and carbon neutral."
Mr Sheikh said South Pole Group's analysis shows that switching from a mainstream super fund to Future Super is one of the most significant things Australians can do to reduce their personal carbon footprint.
"We believe the risks associated in investing in harmful sectors like the fossil fuel industry are simply too high. The average age of a Future Super member is 37, with a likely retirement around 2045-2050," Mr Sheikh said.
"Global leaders have already agreed that we must significantly curb carbon emissions by this time, with many scientists suggesting the need for a complete decarbonisation along this timeline.
"Economists and scientists have calculated that this means leaving up to 80 per cent of the known fossil fuel reserves that are on the books of major mining companies, in the ground. And yet most super funds haven’t done the analysis about how exposed their members' savings are to carbon risks," Mr Sheikh said.
