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Future Fund lacks central strategy for assessing carbon risk

Media Release
Larissa Waters 20 Nov 2014

The Australian Greens today questioned Future Fund Chair Peter Costello about fossil fuel divestment in Senate Estimates

"I established today in Senate Estimates that the Future Fund does not have a consistent method for assessing risk of carbon exposure," Senator Larissa Waters, Australian Greens environment spokesperson, said

"Whether or not to even consider the risk of carbon exposure, or how to measure it, isn't decided by central management or the board.

"Rather the 90 different investment managers are empowered to make up their own minds with no consistent ruling or methodology.

"This appears to be a very 'hands off' approach to dealing with one of the world's most pressing economic challenges.

"While the Future Fund has divested from tobacco on safety grounds, it is refusing to consider divesting from fossil fuels.

"As an intergenerational fund, surely the Future Fund should have its eyes to the health impacts that will be faced by future generations because of current fossil fuel burning.

"The Fund divested from tobacco products because they were not safe - the same should apply to fossil fuels. 

"Already the world is facing more frequent and damaging extreme weather events because of the burning of fossil fuels.

"Paying for more fossil fuels to be burnt will burden future generations of Australians with obscene economic costs, offsetting the positive savings of the Future Fund," Senator Waters said.

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