Govt funds hold on to fossil fuel
Two multibillion-dollar government-guaranteed investment funds say they will continue investing in fossil fuel companies, despite the Government’s efforts to fight climate change.
Combined, the National Provident Fund (NPF) and the Government Superannuation Fund Authority have almost $150 million invested in fossil fuels. Both manage superannuation schemes and are responsible to the Government. The latter, which manages super schemes for tens of thousands of public sector employees, should not be confused with the ‘‘Cullen Fund’’.
Last month, the boards of both funds met and reviewed their carbon footprint, and decided against divesting.
A spokesperson for NPF and the Super Fund Authority, Simon Tyler, said the funds regularly reviewed their investment policy, and acknowledged ‘‘climate risk’’ was taking on more importance.
‘‘Although [we are] aware of the risks to fossil fuels from global government measures to stop global warming, these must be weighed with other factors in determining relative attractiveness,’’ Tyler said.
But Green MP Chloe Swarbrick said that wasn’t good enough. ‘‘When we have statesanctioned investment in what is essentially the climate crisis through continuing to bankroll the fossil fuel industry, we have a problem.’’
NPF and the Super Fund Authority are not the only crown entity investors under pressure to divest in companies involved in the production of fossil fuels. Last month, the Green Party called on ACC to reduce its investment of nearly $1 billion, and said if it didn’t, the Government should act.
During a subsequent Question Time, Swarbrick asked Finance Minister Grant Robertson why he hadn’t used his powers under the Crown Entities Act to force ACC to divest in fossil fuels. Robertson replied that he had written to ACC to remind it of his expectations regarding investment practices and ethical standards.
Yet he said ministers had to maintain an ‘‘arms-length relationship’’ with crown entities, and any decision would ultimately be up to ACC.
‘‘Whose responsibility is it then?’’ Swarbrick said.
‘‘This is an opportunity for the New Zealand Government to walk the talk in terms of being a climate leader. If these funds aren’t choosing to live up to the ethical standards that they apply to, say, tobacco, then it’s absolutely the Government’s responsibility to step in.’’
As well as ACC, she said funds such as NPF, with a portfolio worth $1.9b, and the Super Fund Authority, worth $4.6b, had the power to influence markets.
– RNZ