A new survey shows concerns about coal and gas projects on the Great Barrier Reef and other protected areas are putting banks and super-funds at risk of losing customers.
According to the survey conducted by Lonergan Research and commissioned by environmental lobby group 350.org Australia, 67 per cent of Australians indicated they would choose a bank or superannuation fund that did not invest in fossil fuels over one that does.
These results show a marked increase from the 25 per cent of Australians who said they’d switch funds as part of The Australia Institute and Market Forces survey last year.
The nationwide survey of 1314 Australians shows that almost eight in 10 are concerned about their bank, at 78 per cent or super fund at 77 per cent financing coal and gas projects in or near the Great Barrier Reef.
At the same time 72 per cent are concerned about their bank or super fund financing coal and gas anywhere in Australia.
“These findings demonstrate a heightened concern about the risks of fossil fuels amongst everyday Australians and a growing unwillingness to have their money associated with these risks,” said Charlotte Wood, 350.org Australia campaigns director.
According to Market Forces, since 2008, the Big Four Banks, which control over 82 per cent of all Australian loans, have loaned $19 billion to new coal and gas projects, many within the Great Barrier Reef World Heritage Area.
The risks of investing in coal and gas projects on the Great Barrier Reef were recently highlighted by the world’s largest fund manager Blackrock, and heeded by Deutsche Bank and HSBC.
All three have ruled out financing the expansion of the proposed Abbot Point coal terminal in Queensland, following moves by Lend Lease and Anglo American earlier this year, BHP in 2013 and Rio Tinto in 2012.
The survey highlights that banks and superannuation funds are missing out on an untapped demand for fossil free investment products with 78 per cent agreeing that super-funds should offer fossil free products.
Australians are also increasingly concerned about the long-term risks involved in investing in fossil fuels with 76 per cent believing the risks associated with these investments are growing and 75 per cent agreeing that Australia has too many eggs in the mining basket.
“In less than 12 months since the fossil fuel divestment campaign kicked off in Australia, these findings reflect a strong appetite for fossil free investing among Australians and a growing desire for Australia to look toward an economic future beyond fossil fuels,” continued Ms Wood.
A recent survey of 587 investment professionals found that fossil fuel free investment portfolios have increased by 50 per cent in the past 12 months.
UniSuper, one of Australia’s largest super funds, and AMP Capital, one of the Asia-Pacific’s largest asset managers, have both responded to this demand by recently announcing that they would be reducing the fossil fuel exposure of their responsible investment portfolios.
Hunter Hall, one of Australia’s largest ethical investment funds managing approximately $1 billion, also announced last week that it would exclude fossil fuels from all of its retail funds.
Australian Ethical Investment, the investment manager and superannuation fund with the least fossil fuel exposure of any currently on the Australian market, has reported significant increases in new members since last year.
“The tide is turning and these findings present a real win-win. Investors can win from the growing demand for fossil free products whilst people and the planet win from money being moved out of polluting sectors and into the clean energy industries of the future,” said Ms Wood.
Read the full survey findings here.
