Retirement
How a green fund could halve your carbon emissions
Australian households could halve their carbon footprint or offset the equivalent of 16.9 million cars simply by changing their superannuation provider, new figures have revealed.
How a green fund could halve your carbon emissions
Australian households could halve their carbon footprint or offset the equivalent of 16.9 million cars simply by changing their superannuation provider, new figures have revealed.
Numbers crunched by Australian Ethical showed that Australia could reduce its carbon footprint by around 78 million tonnes of CO2 by changing funds.
However, while the $3 trillion superannuation system could theoretically be invested in greener companies or industries, Australian Ethical acknowledged that carbon-intensive polluters will not actually stop production overnight due to these changes.
Instead, Australian Ethical CEO John McMurdo noted that the research should allow funds to put pressure on big polluters as well as show members the impact their superannuation can have.
“Opening your eyes to where your money is being invested and making a change could be the fastest and most impactful thing every Australian can do, right now, to help solve the climate crisis,” Mr McMurdo said.
The CEO previously told nestegg the superannuation industry provides a huge opportunity to only invest ethically but help transition Australia into a low carbon world.
“Super funds can leverage their size and their influence by asking the companies they invest in to disclose and address their climate risks,” he said.
“And they can choose to invest in green technologies and initiatives, supporting their development through capital allocation.”
While highlighting that climate change is one of our planet’s biggest challenges, he said Aussies who open their eyes to the way their money is used can go a long way to helping find a solution.
“It can sometimes feel like the fate of our planet rests on individual people taking lots of small actions,” the CEO said.
“But instead of just saying no to using harmful products and services, we can also use our money to remove support for their production in the first place, creating an enormous collective difference.”
Zali Steggall OAM MP believes that leveraging money to combat the greatest challenge of our times is the most sensible thing individuals can do.
“Transferring funds to an ethical funds manager is a clear way for individuals to reduce their own emissions and broader environmental impacts while at the same time benefiting from these funds’ high average performance. It’s a win-win,” the member of parliament said.
Australian Ethical calculated that the difference between putting Australia’s $3 trillion pool of super into a climate-friendly fund and one that is not was equivalent to a lower carbon footprint of around 78 million tons of carbon (CO2e) per year, or the same as:
- 4.6 million average Australian households (half the total number of households in Australia),
- 16.9 million cars on the road (close to the total number of cars in Australia of 20 million),
- 1 million tankers of petrol, or
- 3.3 million garbage trucks of waste being recycled instead of going to landfill every year (the equivalent of 3 tonnes of waste per Australian household).
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