UniSuper faces customer uprising over climate targets

“As the default superannuation fund for Australia’s academics, scientists, researchers and university employees, UniSuper should be leading investor action on climate change,” the letter said.

“The imperative to limit climate change in line with these goals cannot be overstated … Should we fail to meet the Paris climate goals, the ecological, physical, health and social damage caused by climate change would be catastrophic.”

The letter and petition also called for UniSuper’s climate risk report to outline a “viable transition strategy and road map”, a clear proxy voting approach and “an effective, viable and transparent strategy for unsuccessful engagement”.

It also demanded UniSuper communicate a plan to the consultative committee on how it would meet new international sustainability standard climate disclosure requirements, which come into force nationally next financial year, by January. An independent report by consulting firm Aurecon recently found the fund was not on track to do so.

Committee splits

The consultative committee is made up of four representatives from each of its shareholder universities and advises the fund on its direction. Half of these represent staff and half employers, with this portion generally supporting management.

But 25 per cent of the committee also voted in favour of the resolutions at UniSuper’s annual member meeting on Friday, after they were raised by committee representative and University of Queensland Assistant Professor Saphira Rekker.

A professional adviser to funds and companies on their compliance with the Paris Agreement, Dr Rekker has pushed UniSuper for greater science-backed climate change action since 2021.

But despite an initial “productive” call, had largely found them opposed to taking on their customers’ concerns.

“They have a member base of the most intellectual people in the country, of the people who are most educated on climate change, and I don’t see them engage with it. If they do engage in it, they get pushback,” she said.

“But the regulatory requirements [around climate change] and increasing, and as a representative on the consultative committee I have a responsibility to raise what I think’s in the best interests of the funds and its members.”

Signatories to the open letter include professors in climate and sustainable finance, economics, Antarctic science and ecology, and an Intergovernmental Panel on Climate Change report lead author.

Of the 1650-plus people to sign the petition, more than 1500 are already UniSuper members and the others say they would consider changing to the fund if they adopted the measures it proposed.

UniSuper is already separately subject to a Market Forces campaign pushing it to divest from companies with fossil fuel or gas project expansion plans, which is backed by more than 15,000 fund customers.