Latest news with #MarketForces
Nikkei Asia
9 hours ago
- Business
- Nikkei Asia
Japan's top investors have a duty to back a clean energy future
Women wearing summer kimonos take a break next to a cooling mist at Tokyo's Sensoji temple on July 22, 2024. © Reuters Sachiko Suzuki is Asia climate and energy analyst for Market Forces, a Melbourne-based initiative researching the financing of environmentally destructive projects. Japan faces another scorching summer, but the country's biggest investment companies are stalling the shift to clean energy with the risk of making global warming-fueled disasters worse by pouring billions into new coal, oil and gas development.
7NEWS
04-06-2025
- Business
- 7NEWS
Homeowners warned insurance costs set to soar as policies factor in natural disaster uptick spurred by climate change
Households are being told to brace for higher insurance premiums. The alert from environmental groups warns that the economic impacts of natural disasters will extend beyond the federal budget. Treasury figures show a loss of $2.2 billion from economic activity following Tropical Cyclone Alfred and floods in NSW and Queensland. The impact is expected to be reflected in March-quarter GDP figures to be released on Wednesday. The government's priority was helping fund recovery and rebuilding for communities, Treasurer Jim Chalmers said. 'The human impacts matter to us most, but the economic cost is very significant too, and we'll see that in Wednesday's National Accounts,' he said. 'Because of the progress Australians have made together in the economy, with inflation down, debt down and unemployment low, we're in a stronger position to provide support when communities need it most.' Policyholders are set to pay more for their insurance because of the increasing frequency of severe weather events. Major insurance companies underwriting coal and gas projects were exacerbating the issue, environmental group Market Forces chief executive Will van de Pol said. 'Customers have every right to be ropeable with insurers for the staggering increase in premiums in recent years, especially when the global insurance industry is making the problem worse,' he told AAP. Skyrocketing premiums and refusing to cover climate change risks in some areas should ring alarm bells for policymakers, according to van de Pol, who said the insurance industry was the 'canary in the coal mine' for climate change. Recent flooding in NSW has left 10,000 homes and businesses damaged or destroyed, and the Insurance Council of Australia reported more than 6000 insurance claims. Tropical Cyclone Alfred in March caused widespread damage and flooding to communities across southeast Queensland and northern NSW. Prolonged downpours in southwest and central Queensland flooded a vast area spanning about one million square kilometres. The government's Disaster Assist website lists 27 separate natural disasters from January to May consisting of flooding, storms, cyclones and bushfires. Opposition Leader Sussan Ley travelled to the NSW Mid-North Coast on Monday to visit flood-affected communities with local MPs. Emergency Management Minister Kristy McBain said the government was funding measures to increase resilience, adaptability and preparedness, and the Disaster Ready Fund initiative would provide another $200 million. Multiple disaster payments have been activated, and the federal government will continue working with NSW on any other funding requests, McBain said. The minister said she had been on the ground in disaster areas to see the impact and had been meeting with affected small business and primary producers.
The Advertiser
02-06-2025
- Business
- The Advertiser
Insurance cost warning after disasters hit bottom line
The economic impacts of natural disasters will extend beyond the federal budget, environmental groups warn as households are told to brace for higher insurance premiums. Treasury figures show a loss of $2.2 billion from economic activity following Tropical Cyclone Alfred and floods in NSW and Queensland. The impact is expected to be reflected in March-quarter GDP figures to be released on Wednesday. The government's priority was helping fund recovery and rebuilding for communities, Treasurer Jim Chalmers said. "The human impacts matter to us most but the economic cost is very significant too and we'll see that in Wednesday's National Accounts," he said. "Because of the progress Australians have made together in the economy, with inflation down, debt down and unemployment low, we're in a stronger position to provide support when communities need it most." Policy holders are set to pay more for their insurance because of the increasing frequency of severe weather events. Major insurance companies underwriting coal and gas projects were exacerbating the issue, environmental group Market Forces chief executive Will van de Pol said. "Customers have every right to be ropeable with insurers for the staggering increase in premiums in recent years, especially when the global insurance industry is making the problem worse," he told AAP. Skyrocketing premiums and refusing to cover climate change risks in some areas should ring alarm bells for policymakers, according to Mr van de Pol, who said the insurance industry was the "canary in the coal mine" for climate change. Recent flooding in NSW has left 10,000 homes and businesses damaged or destroyed, and the Insurance Council of Australia reported more than 6000 insurance claims. Tropical Cyclone Alfred in March caused widespread damage and flooding to communities across southeast Queensland and northern NSW. Prolonged downpours in southwest and central Queensland flooded a vast area spanning about one million square kilometres. The government's Disaster Assist website lists 27 separate natural disasters from January to May consisting of flooding, storms, cyclones and bushfires. Opposition Leader Sussan Ley travelled to the NSW mid-north coast on Monday to visit flood-affected communities with local MPs. Emergency Management Minister Kristy McBain said the government was funding measures to increase resilience, adaptability and preparedness, and the Disaster Ready Fund initiative would provide another $200 million. Multiple disaster payments have been activated and the federal government will continue working with NSW on any other funding requests, Ms McBain said. The minister said she had been on the ground in disaster areas to see the impact and had been meeting with affected small business and primary producers. The economic impacts of natural disasters will extend beyond the federal budget, environmental groups warn as households are told to brace for higher insurance premiums. Treasury figures show a loss of $2.2 billion from economic activity following Tropical Cyclone Alfred and floods in NSW and Queensland. The impact is expected to be reflected in March-quarter GDP figures to be released on Wednesday. The government's priority was helping fund recovery and rebuilding for communities, Treasurer Jim Chalmers said. "The human impacts matter to us most but the economic cost is very significant too and we'll see that in Wednesday's National Accounts," he said. "Because of the progress Australians have made together in the economy, with inflation down, debt down and unemployment low, we're in a stronger position to provide support when communities need it most." Policy holders are set to pay more for their insurance because of the increasing frequency of severe weather events. Major insurance companies underwriting coal and gas projects were exacerbating the issue, environmental group Market Forces chief executive Will van de Pol said. "Customers have every right to be ropeable with insurers for the staggering increase in premiums in recent years, especially when the global insurance industry is making the problem worse," he told AAP. Skyrocketing premiums and refusing to cover climate change risks in some areas should ring alarm bells for policymakers, according to Mr van de Pol, who said the insurance industry was the "canary in the coal mine" for climate change. Recent flooding in NSW has left 10,000 homes and businesses damaged or destroyed, and the Insurance Council of Australia reported more than 6000 insurance claims. Tropical Cyclone Alfred in March caused widespread damage and flooding to communities across southeast Queensland and northern NSW. Prolonged downpours in southwest and central Queensland flooded a vast area spanning about one million square kilometres. The government's Disaster Assist website lists 27 separate natural disasters from January to May consisting of flooding, storms, cyclones and bushfires. Opposition Leader Sussan Ley travelled to the NSW mid-north coast on Monday to visit flood-affected communities with local MPs. Emergency Management Minister Kristy McBain said the government was funding measures to increase resilience, adaptability and preparedness, and the Disaster Ready Fund initiative would provide another $200 million. Multiple disaster payments have been activated and the federal government will continue working with NSW on any other funding requests, Ms McBain said. The minister said she had been on the ground in disaster areas to see the impact and had been meeting with affected small business and primary producers. The economic impacts of natural disasters will extend beyond the federal budget, environmental groups warn as households are told to brace for higher insurance premiums. Treasury figures show a loss of $2.2 billion from economic activity following Tropical Cyclone Alfred and floods in NSW and Queensland. The impact is expected to be reflected in March-quarter GDP figures to be released on Wednesday. The government's priority was helping fund recovery and rebuilding for communities, Treasurer Jim Chalmers said. "The human impacts matter to us most but the economic cost is very significant too and we'll see that in Wednesday's National Accounts," he said. "Because of the progress Australians have made together in the economy, with inflation down, debt down and unemployment low, we're in a stronger position to provide support when communities need it most." Policy holders are set to pay more for their insurance because of the increasing frequency of severe weather events. Major insurance companies underwriting coal and gas projects were exacerbating the issue, environmental group Market Forces chief executive Will van de Pol said. "Customers have every right to be ropeable with insurers for the staggering increase in premiums in recent years, especially when the global insurance industry is making the problem worse," he told AAP. Skyrocketing premiums and refusing to cover climate change risks in some areas should ring alarm bells for policymakers, according to Mr van de Pol, who said the insurance industry was the "canary in the coal mine" for climate change. Recent flooding in NSW has left 10,000 homes and businesses damaged or destroyed, and the Insurance Council of Australia reported more than 6000 insurance claims. Tropical Cyclone Alfred in March caused widespread damage and flooding to communities across southeast Queensland and northern NSW. Prolonged downpours in southwest and central Queensland flooded a vast area spanning about one million square kilometres. The government's Disaster Assist website lists 27 separate natural disasters from January to May consisting of flooding, storms, cyclones and bushfires. Opposition Leader Sussan Ley travelled to the NSW mid-north coast on Monday to visit flood-affected communities with local MPs. Emergency Management Minister Kristy McBain said the government was funding measures to increase resilience, adaptability and preparedness, and the Disaster Ready Fund initiative would provide another $200 million. Multiple disaster payments have been activated and the federal government will continue working with NSW on any other funding requests, Ms McBain said. The minister said she had been on the ground in disaster areas to see the impact and had been meeting with affected small business and primary producers. The economic impacts of natural disasters will extend beyond the federal budget, environmental groups warn as households are told to brace for higher insurance premiums. Treasury figures show a loss of $2.2 billion from economic activity following Tropical Cyclone Alfred and floods in NSW and Queensland. The impact is expected to be reflected in March-quarter GDP figures to be released on Wednesday. The government's priority was helping fund recovery and rebuilding for communities, Treasurer Jim Chalmers said. "The human impacts matter to us most but the economic cost is very significant too and we'll see that in Wednesday's National Accounts," he said. "Because of the progress Australians have made together in the economy, with inflation down, debt down and unemployment low, we're in a stronger position to provide support when communities need it most." Policy holders are set to pay more for their insurance because of the increasing frequency of severe weather events. Major insurance companies underwriting coal and gas projects were exacerbating the issue, environmental group Market Forces chief executive Will van de Pol said. "Customers have every right to be ropeable with insurers for the staggering increase in premiums in recent years, especially when the global insurance industry is making the problem worse," he told AAP. Skyrocketing premiums and refusing to cover climate change risks in some areas should ring alarm bells for policymakers, according to Mr van de Pol, who said the insurance industry was the "canary in the coal mine" for climate change. Recent flooding in NSW has left 10,000 homes and businesses damaged or destroyed, and the Insurance Council of Australia reported more than 6000 insurance claims. Tropical Cyclone Alfred in March caused widespread damage and flooding to communities across southeast Queensland and northern NSW. Prolonged downpours in southwest and central Queensland flooded a vast area spanning about one million square kilometres. The government's Disaster Assist website lists 27 separate natural disasters from January to May consisting of flooding, storms, cyclones and bushfires. Opposition Leader Sussan Ley travelled to the NSW mid-north coast on Monday to visit flood-affected communities with local MPs. Emergency Management Minister Kristy McBain said the government was funding measures to increase resilience, adaptability and preparedness, and the Disaster Ready Fund initiative would provide another $200 million. Multiple disaster payments have been activated and the federal government will continue working with NSW on any other funding requests, Ms McBain said. The minister said she had been on the ground in disaster areas to see the impact and had been meeting with affected small business and primary producers.
The Guardian
31-05-2025
- Business
- The Guardian
A guide to greener banking: I divested my personal finances and you can too – here's how
What if your money was quietly fuelling the climate crisis – and you had no idea? If you bank with one of the big four or have retirement savings in superannuation, there's a good chance it is. In Australia, many major banks and most default super funds continue to invest in fossil fuel companies and their coal, oil and gas projects, driving global warming. That's where the global divestment movement comes in. Divestment means shifting your money out of harmful industries and into more ethical, climate-positive alternatives. It's the opposite of investment – you simply pull your capital out of companies or funds that contribute to environmental or social harm. Over the past few years, I've delved into divesting my personal finances and learned some key ways this shift can make a real difference. If you only tackle one area of divestment, make it your super – it's often your largest pool of money beyond property, and too often it's channelled into fossil fuels. The climate lobby group Market Forces estimates $150bn of Australians' retirement savings – roughly $6,200 per member account on average – could be tied up in 190 global companies driving the most climate damage. And such investment is growing, meaning our retirement savings are increasingly being used to create a more polluted world to retire into. One way to find a better option is to use the Market Forces comparison tool. It profiles more than 70 fund options, pinpointing just seven that fully exclude fossil fuels and the so-called 'Climate Wreckers Index' of the world's worst polluters. Using this type of information, I divested from a large Australian super fund which has known investments in fossil fuels and moved to a fund that excludes major polluters such as Woodside, Whitehaven Coal, Santos, Origin and AGL. Justin Medcalf, co-founder of Ethical Advisers' Co-op and Unless Financial, says to beware the 'devil in the detail'. For example, some funds use a tiered threshold screening, which may allow investment in companies earning limited amounts of their revenue from coal mining. 'A lot of investors assume that having a screening process in place means zero exposure to fossil fuels. It can be a rude surprise to discover there is still exposure,' Medcalf says. 'Ultimately, there is no perfect portfolio. For now, it's 'how do we create the best version of something that isn't perfect?'' All four of Australia's big banks – ANZ, Commonwealth Bank, NAB and Westpac – pour billions into fossil fuel projects each year, as do many other major players. In 2021, when searching for my first mortgage, I saw the chance to divest from a big four bank and switch to a more ethical option. I told my broker I wanted a home loan that was both competitive and backed by a bank that doesn't fund fossil fuels. We landed on one of the few with a cleaner track record. To find out where your bank stands, use Market Forces' Compare Banks tool. It includes a 'tell them to stop' button, so you can quickly send a message and easily demand change. That's crucial, says Medcalf. 'A lot of people move their money but don't say anything, so the bank never knows why. A key part of the divestment movement is communicating,' he says. And it works. Just last year, Commonwealth Bank broke ranks and announced it would stop financing fossil fuel companies that don't comply with Paris climate goals. 'That was quite a considerable win and a lot of that is attributed to the divestment movement,' Medcalf says. If you're investing in shares, ETFs or managed funds, beware of greenwashing. Many mainstream investment products – even those labelled 'sustainable' or 'balanced' – still include major polluters. Tools like the Responsible Investment Association of Australasia's certification and the Ethical Advisers' Co-op's Leaf rating can help you find investment products and services that meet high standards of environmental, social and ethical performance. 'We need a mindset shift,' Medcalf says. 'Rather than thinking 'what can I avoid?', think 'what can I actively invest in?' Yes, we want to avoid industries that aren't creating a positive future, but we can also get behind the industries of the future.' And divesting doesn't have to mean missing out financially – it may even boost your returns. RIAA's 2024 Benchmarking Report shows responsible investment funds have outperformed mainstream ones by 3% over 10 years, and 1.5% over five years. For long-term investors, especially those in their 30s and 40s, Medcalf says it makes sense to start factoring in environmental risk. Fossil fuel assets are increasingly seen as vulnerable, with tightening regulations and the growing risk of becoming 'stranded' and unprofitable. If you want to go a step further, consider strategically buying into a polluting company along with fellow shareholder activists who then band together to demand change from the inside. You can get started with as little as $500 using the Sustainable Investment Exchange (SIX) platform. Whether you divest, reinvest or become an activist shareholder, the point is the same: your money is powerful and you can actively choose whether it props up harmful industries or helps build a better future.
The Guardian
21-05-2025
- Business
- The Guardian
It's time to ask: do you know what your super is really supporting?
Almost every Australian has money in superannuation. With a total of $4.2tn held in super at the end of 2024, ours is one of the world's largest pension markets. That's some serious buying power, and therefore influence, that super funds have. But is that money doing harm or doing good? Will van de Pol pays close attention to the actions of super funds. As the CEO of Market Forces, he helps hold Australian financial institutions to account for their roles in practices that harm the environment and exacerbate climate change. 'Unfortunately, most super funds don't make it easy for the average punter to wade through the thousands of lines of data to get to the truth,' van de Pol says. To counter this lack of transparency, Market Forces analyses how much Australia's big super funds are investing in the world's biggest climate wreckers. At the end of 2023, more than $39bn held in the default or largest investment options with 30 of Australia's largest super funds was invested in companies that were driving climate damage with their coal, oil and gas expansion plans, Market Forces research found. However, van de Pol says, it doesn't have to be this way. The eight largest super funds manage the majority of our retirement savings, and in March 2024 they collectively owned almost 25% of Australian listed shares. This is our money being invested. And by extension, we have a role in what happens to it. Alison George is the chief impact and ethics officer at Australian Ethical, a Certified B Corp super fund that believes in steering capital towards companies that are doing good and away from those that aren't. Its ethical charter governs where and how it invests, with guiding principles that align with UN sustainable development goals. 'For most people, it might be difficult to touch those issues,' George says, 'but their superannuation money is one of the things that lets them have some power.' With so many shares under their control, van de Pol says, Australia's big super funds have significant power to influence how companies act. 'That's where our power comes in,' he says. 'Our power as a collective community that is ensuring that our retirement savings are being used in a way that shepherds our economy to a stable warming outcome and provides a world worth retiring into.' George says: 'Large investors, like super funds, do have quite a lot of power. As an individual or a shareholder, you don't have the ability to open all the doors that a big investor can. When [large] investors then also collaborate and align around things that matter and work with civil society and not-for-profits, they can take that even further.' In listed companies, every shareholder typically has the right to one vote per share, so if a super fund holds lots of shares, it may be able to sway a company's decisions. However, shareholders – including super funds – can abstain from voting, allowing choices to be made without challenging them. Van de Pol says: 'The vast majority of funds are failing to use that power to push polluters far enough and fast enough on climate action. We can see that by the fact that companies are continuing to drive up real-world emissions by pursuing new oil and gas projects.' Withholding votes against actions such as these, he says, effectively constitutes an endorsement. When members challenge their super funds over fossil fuel investments, the most common response is that the funds are hoping to change big-polluter behaviour from the inside. 'That's awesome and great if they're delivering on that promise, but it is not how we are seeing things play out at the moment.' Since 2022, Australian funds have been legally required to disclose their investment holdings, including the name, market value and proportion of assets in each portfolio. This information is usually listed on funds' websites, though there's no requirement that they make it easy to find. If you want easy-to-access information, Market Forces research is a good start. Many of us try to do the right thing about our consumption choices George says: 'It's important to recognise that it's your money and it's a big choice. Many of us try to do the right thing about our consumption choices. You may as well put it into something that's a big choice that maybe makes a difference.' George says a lack of clear information from some funds can itself reveal something about their actions. If your fund is making ethical investment decisions, they'll be upfront about it, she says. 'They will want to talk about it, because it's something that they're committing business resources to doing.' When we start working, our employer has to make super contributions on our behalf, and may use a default fund if we don't nominate one. That means many Australians are put into a fund, and may never have taken a close look at it. The good news is almost all of us have the right to choose a different fund – and it's easy to switch. Using an analysis tool such as Market Forces or Responsible Returns can help members find out what their super funds are doing and find funds that better suit their ethical positions. The process of switching is relatively simple. At any time, you can choose to join a new fund and notify your employer so they can pay contributions to your new account. If you have accounts with multiple super funds, you also have the option to consolidate them into a single account. You may want to seek independent financial advice to help with your decision-making. Van de Pol says the degree and ease of choice should give Australians hope that their super can do good. 'That hope comes from the power that we have as individuals,' he says. 'Collectively, making decisions to align our finances with our values has the power to shift the entire superannuation industry into gear.' Super funds have an obligation to act in the best financial interests of their members, van de Pol says. 'So, it is really up to all of us to make our voices heard and ensure that that giant multi-trillion-dollar pot of money is held to account and is directed in a way that delivers us a stable and clean world to retire into.' Learn more about how Australian Ethical can invest your money to help build the future you want for yourself, your family and the world. This information is general in nature and is not intended to provide you with financial advice or take into account your personal objectives, financial situation or needs. Before acting on the information, consider its appropriateness to your circumstances and read the PDS and TMD at Issued by Australian Ethical Investment Ltd (ABN 47 003 188 930, AFSL 229949)
