Future Fund declines to reveal climate risk plans
Australia’s sovereign wealth fund, the Future Fund, has snubbed a request to reveal how it plans to manage climate change risks, declaring ‘‘resource constraints’’ prevented its involvement, according to an advocacy group.
John Hewson, chair of the Asset Owners Disclosure Project (AODP), said the $77 billion fund needed to disclose its plans for dealing with future challenges posed by global warming.
‘‘It is quite extraordinary that Australia’s largest fund which will have to supply pension liabilities over the long-term has decided not to come clean over its climate position,” Dr Hewson, the former Liberal leader, said in a statement.
“While investors all over the world continue to build understanding of how to to protect themselves from the market and physical impacts of climate change, the Future Fund thinks it is immune.”
The AODP sent disclosure requests to the world’s largest 1,000 asset owners in August and will publish its first global index of funds later this year, the group said in the statement.
“There are many ways in which we could see a rapid shift to the low-carbon economy in the coming years,’’ Dr Hewson said. ‘‘Under any of those scenarios, we will see rapid direct or indirect repricing of carbon, and then the Future Fund will be unable to sell any stranded assets and so it must start planning now.”
John Connor, CEO of The Climate Institute, which operates AODP in Australia, said the Future Fund’s reluctance to reveal how it will deal with its risk exposures ‘‘is a problem for government and regulators but most of all for citizens and taxpayers who are entitled to know what the board of guardians are actually doing.”