Australian Ethical Investment

Today we have launched the world’s first climate change advocacy fund. The fund puts Australia’s biggest companies on notice that they will face greater shareholder scrutiny of their climate change policy and strategy.

We have partnered with The Climate Institute in putting together the the Climate Advocacy Fund. The purpose of the Climate Advocacy Fund is to influence Australia’s biggest companies to better manage climate change risk through constructive engagement and shareholder resolutions.

The Climate Advocacy Fund differs from traditional “green” funds which typically invest in renewable energy and low-carbon assets. The Climate Advocacy Fund will invest in and seek to influence the behaviour of all the largest Australian companies, and put forward Australia’s first shareholder resolutions on climate change issues. This makes it the first of its kind in the world.

“Companies are on notice that a head-in-the-sand approach to climate change and carbon pollution won’t be acceptable to shareholders. Companies must start taking responsibility for their future liabilities,” says Julian Poulter, The Climate Institute’s business director.

“Superannuation funds manage over a trillion dollars of retirement money which is at risk from climate change. Super funds have a responsibility to be more active owners and encourage their investee companies to reduce climate risk and drive better emissions management.

“The ASX 200 companies are responsible for around half of Australia’s carbon pollution. Yet few of these high emitters have strategies which align with what is required to support the objectives of the Copenhagen accord.”

“This year will see Australia’s first climate change shareholder resolution. It will be a great opportunity for all those funds who are signatories to the Carbon Disclosure Project and the UNPRI to exercise their influence.”

James Thier, executive director of Australian Ethical Investment, said the Climate Advocacy Fund was about improved corporate behaviour, giving a unique voice to shareholders, and delivering strong performance.

“Investing in the Climate Advocacy Fund is about making money and making a difference,” said Mr Thier.

“The Climate Advocacy Fund gives a collective voice to shareholders and is an innovative way to influence corporate behaviour, the first fund of its kind in the world. We also expect it to produce a financial return in excess of the ASX 200. 

“For individuals, investing in the Climate Advocacy Fund is an opportunity to put your otherwise inactive investment into limiting pollution and reducing risks of climate change within your long-term investments.

“There is a significant responsibility and opportunity for investment markets, and this fund in particular, to step into the void left by the failure of the political process.”

The initial focus of the Climate Advocacy Fund will be improved emissions disclosure and high carbon capital investment decisions. This information is critical to investors who are assessing a company’s future performance.

Subsequent resolutions will look at what plans and strategies a company has in place to reduce emissions.

The Climate Advocacy Fund is a fundamental index fund which invests in ASX 200 companies according to their economic footprint. Anyone can invest in the Climate Advocacy Fund, from individuals to institutional investors.

Visit the Climate Advocacy Fund website to find out more.

For further comment:

Australian Ethical Investment

James Thier
Executive director
Phone 0410 442 701

The Climate Institute

Julian Poulter
Business director
Phone 0402 488 877

Harriet Binet
Communications director
Phone 02 8239 6299 or 0402 588 384