A Year of Climate Action

 

 

3: Divest your super

In Australia we are all investors, thanks to our compulsory superannuation system. And by choosing where we put our super we can direct that investment away from fossil fuels.

Transitioning to a low carbon future will require investment, and one of the few completely fossil fuel free funds – Future Super – point out our superannuation can provide that investment:

Just this week a major international financial institution reported on the massive financial risks from the impacts of climate change, and the potential for stranded assets: fossil fuel investments. So it makes financial AND ethical sense to move your superannuation out of fossil fuels.

Market Forces do excellent analysis of the investment strategies of different superannuation funds, and summarise their findings here.

There are a few options to make your super work for a sustainable future:

  1. An increasing number of funds have sustainable investment options within their portfolio, so it is worth investigating whether you can switch within your current fund.
  2. If your fund does not have this option, Market Forces have an automated email you can fill out, asking your fund to divest from fossil fuels.
  3. Final option, with maximum hassle factor, is changing your superannuation fund.

Market Forces report that only eight funds have comprehensive exclusions from investments in fossil fuels:

  • Australian Ethical Australian Shares
  • Australian Ethical Balanced
  • Catholic Super PositiveIMPACT
  • Cruelty Free Super
  • Future Super Balanced Impact
  • Local Government Super Sustainable Australian Shares
  • UniSuper Sustainable Balanced
  • Verve Super

Other funds that Market Forces rate relatively highly are:

  • ACSRF Socially Responsible Balanced
  • Australian Super Socially Aware
  • VicSuper Socially Conscious
  • WA Super Sustainable Future

Confession: this action is actually a cheat for me, because I have had my super with Australian Ethical since the 90s. (And I have been really happy with them. Until researching this post, I hadn’t compared returns with other super funds but as far as I can tell it seems to be doing OK.)

So this week I am tackling my husband Tim’s superannuation. He is currently with GESB, the Western Australian State Government super fund. According to Market Forces, GESB has a lot of work to do in regards to climate safe investing:

I made some inquiries with GESB about whether it was possible to choose an ethical investment option within the super fund, but the answer was essentially no. I did more research and discovered they had already been targeted by a divestment campaign, and have yet to make any change. I think it is time for Tim to move super funds.

I investigated the options out of the list above that weren’t industry funds (like Local Government or UniSuper) and that weren’t an institution Tim would not support (Catholic Super) or a fund aimed at women (Verve Super). Which left a fairly short list.

I looked at a superannuation fund comparison site to compare returns and fees.

  Past 5 year return Admin fee Fee on $50K
GESB (current fund)
7.25% $66 $456
Australian Ethical 8.4% $97 $657
Australian Super Socially Aware

8.51%

(Figure from their website)

$117 $417
Cruelty Free Super

6.74%

$52 $997
Future Super

6.91%

(Figure from their website)

$94 $964
WA Super Sustainable Future

8.1%

(Figure from their website)

$73 $513

 

So Australian Ethical has higher fees (but apparently not so different from the industry average) but also higher returns than GESB. WA Super Sustainable Future and Australian Super Socially Aware look good too, with lower fees than Australian Ethical and similar performance to AE. 

I have passed my report to Tim…

2: Contact moderate Liberal MPs

There is an important political moment in Australia right now. A tiny sliver of an opening in the brick wall of climate change denial in our government.

If you are interested in some background, this podcast is a fascinating conversation between Malcolm Turnbull and Guardian journalists Lenore Taylor and Katharine Murphy about the climate denial in the right wing of the Liberal party and at News Corp.

The spotlight is on the Morrison government for their inaction on climate change, and not just in Australia. It was only in December, at the latest round of climate talks in Madrid, that Australia was a major blocker of stronger action on climate change, working in collaboration with countries like Brazil and Saudi Arabia.

This summer’s bushfire crisis has received widespread international coverage, and even the arch-conservative UK commentator Piers Morgan has ridiculed our government for their climate denial.

So far, unfortunately, Morrison appears unmoved by any public pressure, and Anthony Albanese’s capitulation to coal when he recently backed the coal export industry, has shown yet again, that both major parties are as equally beholden to the political power of the fossil fuel sector, and that the only way we get stronger climate action in Australia is through a bipartisan approach.    

Independent MP Zali Stegall has said she will introduce a Climate Change bill before Parliament in March.

There are some moderate MPs inside the Liberal and National parties who are beginning to speak out publicly. Paula Matthewson, in the New Daily, suggests that there are 10 Liberal and at least one Nationals MP “who could be persuaded to speak out on the need for climate action – either because the majority of their electorates believe the same, or because they have little to lose.”

I’ve added two more MPs to this list, because they are members of the Parliamentary Friends of Climate Action.

Even though you might not be a voter in their electorate, we should all contact these MPs urging them to push harder within their parties for far stronger action to reduce carbon emissions.

They need to know they have widespread public support.

Here is the list of MPs, and their email addresses, and at the end, a draft of what I wrote to them. 

Dave SharmaDave.Sharma.MP@aph.gov.au

Steve Ironssteve.irons.mp@aph.gov.au

Fiona MartinFiona.Martin.MP@aph.gov.au

Katie Allen Katie.Allen.mp@aph.gov.au

Jason FalinskiJason.Falinski.MP@aph.gov.au

Angie Bellangie.bell.mp@aph.gov.au

Jason WoodJason.wood.mp@aph.gov.au

Trevor EvansTrevor.Evans.MP@aph.gov.au

Warren Entschwarren.entsch.mp@aph.gov.au

Russell BroadbentRussell.Broadbent.MP@aph.gov.au

Tim WilsonTim.Wilson.MP@aph.gov.au

Trent ZimmermanTrent.Zimmerman.MP@aph.gov.au 

Update

I sent all the emails and received a similar response from each, which essentially said that if you are not in the electorate of that MP “your views will be noted, but will not always receive a response.”

So I’m going to send the same message in a physical letter.

1: Write a Letter to the PM

It might seem like an insignificant thing to do but communicating directly with our political representatives is a crucial democratic act.

The Climate Council says: ‘Our MPs are there to listen to the views of the public, understand your perspective, and represent you in Parliament. The more people who contact their local MP on a given topic (e.g. climate change), the more likely this matter will be raised.’

Research with UK politicians found a key reason why politicians don’t make the case for climate action was that politicians feel under very little pressure to act on climate change. The researchers described this as a ‘stark message’:

Voters are not asking their representatives to act. As one [MP] said, “I can’t remember the last time I was asked about climate change. It’s very rare to be asked about it.”

Writing a letter is an opportunity – as a voter, a citizen, a constituent – to ask for climate change action. To put your views on the record, and help to build the political support for genuine action on climate change.

I’m not the only one feeling compelled to write letters to representatives right now:

And there is even some evidence that the message is beginning to get through:

There are guidelines to writing good letters to MPs. The Climate Council, in their Climate Action Toolkit, suggests:

  • Make the letter brief – no longer than one page, and focus just on one issue.
  • Add a personal touch – explain why the issue is important to you.
  • Use facts, not hyperbole – clearly state the facts that highlight the need for urgent further action. Be brief and objective, telling them what needs to change and why. Be passionate but polite.
  • Include an ask – be clear on what action you want your MP to take. This could include actions such as making a speech in parliament, raising the issue at a meeting, voting for or against something in parliament.
  • Follow up – Finish the letter by saying that you look forward to receiving their reply.

A single letter is no silver bullet. It is not going to miraculously change the mind of the PM or your local MP. In fact, a friend, Ruth Halbert, wrote one letter per day for 600 days to then Prime Minister Malcolm Turnbull in protest at Australia’s indefinite detention of asylum seekers on Manus Island and Nauru. Ruth received only five responses to all those letters, and not one of them from the Prime Minister himself.

So don’t expect immediate change or even a response. But you will be adding to a growing voice of people asking for genuine action on climate change.

Below is my letter to the PM which I will tweak slightly to send to Angus Taylor, Minister for Energy, and my local Federal MP, Rick Wilson. You can find the contact details of your own Federal MP here.

Borrow from my letter, or use this great example from the Australian Parents for Climate Action. 

Happy writing!