news
Fuelling the problem
Nurses take a stand against fossil fuels .
By NCA NewsWire
Health workers have withdrawn their savings en masse from a major Australian super fund with the aim of sending a powerful message .
A group of over 130 nurses and doctors divested their money from industry fund HESTA in direct response to the company ’ s investment in fossil fuels .
According to the climate advocacy group behind the move , Market Forces , HESTA has around $ 2 billion invested in fossil fuel companies including oil and gas giants Woodside and Santos .
Paediatric anaesthetist Dr Richard Barnes said he was particularly concerned about the health impacts of the climate crisis .
“ I ’ ve been a member of HESTA for a long time and I ’ m very conscious now they continue to have significant holdings of a number of companies that are primarily involved in fossil fuels ,” he said .
“ I ’ ve decided to move my retirement money elsewhere I can be sure it won ’ t be supporting fossil fuel companies .”
All up the savings of those involved in the action is estimated to see $ 11.7 million drained from HESTA .
Across its more than 930,000 members , HESTA has roughly $ 68 billion in managed funds .
It is believed to be the single biggest , single-climate divestment day targeting a superannuation fund in Australia ’ s history .
“ Clearly , the amount of money we ’ re going to move out of HESTA is a tiny fraction of their total super pool , but I hope our action will send a message ,” Barnes said .
Former nurse and chief executive at the Mental Health co-ordinating Council , Jenna Bateman , said with many members in the health and welfare sector , HESTA should be a leader in tackling climate change , which will disproportionately affect the most vulnerable .
“ It ’ s kind of past planning time ; it ’ s time to do it now . They have to divest from fossil fuels and I think taking your money out or at least raising the issue is just putting that pressure on them ,” she said .
HESTA chief investment officer Sonya Sawtell-Rickson said immediate divestment from fossil fuels was not necessarily the best way to affect positive change from companies .
“ Simply selling shares in these companies , without first attempting to change their behaviour , does not contribute to reducing emissions or reduce systemic risk ,” she said .
“ As a shareholder , HESTA can directly engage with companies exposed to transition risk to push for greater climate action .”
According to Sawtell-Rickson , HESTA has used shareholder meetings to vote against plans by Woodside and Santos which did not align with the Paris agreement .
She added where companies were not responsive or failed to improve their practices , divestment was one option it could take “ where it ’ s in the best financial interest of members ”.
“ I hope our action will send a message .
HESTA is not alone in struggling to balance divesting from fossil fuels with broader economic concerns and impact on its investment portfolios .
Smaller fund , NGS Super , has a more ambitious target of making its $ 12 billion worth of holdings carbon neutral by 2030 , with an interim target of a 35 per cent reduction in carbon by 2025 .
Bateman said she is yet to choose a better alternative super fund , as she is struggling to discern genuine sustainability claims from “ greenwashing ”.
“ It should be really transparent ; I shouldn ’ t have to , as a punter , wade through a whole lot of information and words that aren ’ t actually telling me what I need to know . In fact , they ’ re kind of hiding the truth from me ,” she said .
Bateman added that immediate divestment from all fossil fuels was not a deal-breaker , but institutions needed to demonstrate clear and concrete timeframes if they were to extend the process over several years .
“ If I can see a clear exit plan , then I am more likely to stay with an institution – but it needs to be very clear and very real ,” she said .
“ I don ’ t want ‘ we will consider in five years that we may divest ’. I want to know that in five years they will .” ■
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