Major super funds accused of still failing on fossil fuels

Environmental advocacy group Market Forces has sought to continue ramping up pressure on Australia’s major superannuation funds, this time claiming analysis has found that the top 30 funds have more than $33 billion invested in companies expanding fossil fuels globally.

It said these investments were included in the funds’ default or largest investment options.

The Market Forces report is based on the public disclosures of the superannuation funds with the group claiming that the top super funds have more than three times invested in the global list of 200 companies with the biggest fossil fuel expansion plans than the $9.7 billion they have backing clean energy companies.

The market forces statement provided the following findings from its analysis:

The funds with the default investment options most exposed to the FFX [Fossil Fuel Exposed] 200 at 30 June 2025, as a proportion of share investments, are:

1. AMP – MySuper 1970s (7.3%)
2. Commonwealth Super Corp – PSS Default (7.2%)
3. Australian Retirement Trust – Lifecycle High Growth Pool (7.1%)

The funds with the default investment options least exposed to the FFX 200 at 30 June 2025, as a proportion of share investments, are:

1. Australian Ethical – Balanced (0.0%)
2. ESSSuper – Balanced Growth Managed (4.2%)
3. State Super – Balanced (4.5%)

It said only seven of the super fund investment options analysed have seen a net reduction in exposure to FFX 200 companies as a proportion of their share investments since December 2021. 19 super fund investment options have increased exposure to FFX 200 companies over this timeframe, while Australian Ethical maintained 0% exposure, and MLC had the same exposure at both disclosure periods.

UniSuper – Balanced (-2.6%)

Prime Super – MySuper Balanced (-1.6%)

CareSuper – Balanced MySuper (-1.3%)

IOOF – Balanced Growth (-0.7%)

ESSSuper – Balanced Growth Managed (-0.3%)

Hostplus – Balanced (-0.2%)

GESB – My West State Super (-0.1%)

Market Forces Head of Australian Campaigns, Brett Morgan said it was outrageous that Australia’s largest superannuation funds were propping up the expansion of coal, oil and gas with buildings of dollars of retirement savings

“Super funds are failing to demand and deliver an end to fossil fuel expansion as the impacts of climate change worsen, threatening member returns.”

Market Forces said that, for for the first time, it had analysed the financial performance of FFX 200 companies against major global sharemarket indices, including the Bloomberg World Index, MSCI World Index, S&P 500 and ASX 300, finding that the companies expanding the fossil fuel sector underperformed across one, three and seven year periods.

The analysis finds that only one out of the largest 30 super funds, Australian Ethical, had no investments in FFX 200 companies, a list which includes Australian oil and gas producers Woodside Energy and Santos, and coal miner Whitehaven Coal.

“Pollution from coal, oil and gas expansion poses an unacceptable threat to a stable climate, economy, and super fund members’ returns,” Morgan said.

“A growing number of members expect their retirement savings to be building a clean energy future, yet super funds are backing the world’s most unforgivable climate polluters.

“Super funds must secure a stable future for members to retire into by turning the blowtorch on coal, oil and gas companies and demanding an end to fossil fuel growth.”