I changed my banking and super out of climate anxiety. Was it a smart financial decision? | Fossil fuel divestment

TIn his time last year I changed banks and aging, and I did it out of climate insecurity. Was it a wise financial decision? At that time, I didn’t know. But when he was sitting in a wildfire smoke-clouded city, he decided that even if he invested only $ 1 in coal, oil, and gas, which are the main causes of the climate crisis, he still decided that $ 1 was too much. Did.

That same climate insecurity has driven me with my friend Ash and found the answer to the question that plagues many of us: what everyday people like us face a climate crisis. Can you do actually Does it make a difference?

The classic move in 2020 investigated this by co-creating a podcast called Heaps Better. In the process of creating it, Ash also sold and the financial switch turned out to be one of the most influential things we could do.

Katrina Bullock, Greenpeace’s legal advisor and financial journalist, said: “Separation from fossil fuels such as coal, oil and gas is a powerful tool that can be used to create systematic change. This not only robs the fossil fuel industry of funding, but also deprives them of their social licenses. Decrease and encourage people in the company to adopt more sustainable practices. “

What did I sell from?

Ash and I didn’t think of ourselves as investors (there’s a bit of a suit and tie feel), but thanks to the forced aging in Australia, we work even if we don’t have stock. All Australians of age are investors in the portfolio.

“If you don’t see where the money goes, you can almost guarantee that you’re accidentally funding the climate crisis,” says Brock. This is because “in Australia, most aging companies are investing in fossil fuels.”

And a bank? Like many kids in the 90s, Ash and I have both invested $ 12 billion in fossil fuels since 2016, funding enough carbon emissions to offset the benefits of Australian emissions. I grew up as a child of Dormite at the Commonwealth Bank. 12 times or more reduction target.

Market Forces, a financial institution-focused environmental protection project, has financed $ 35.5 million in fossil fuel projects from four major banks (Westpac, Commonwealth Bank, ANZ and NAB) since the signing of the Paris Agreement in 2016. I am reporting. Therefore, it directly funded the climate crisis. Their analysts have put together a bank comparison chart so you can also check where your bank is.

Was it hard?

number! Switching superannuations actually takes only 5 minutes. All you need is your taxpayer number and ID (driver’s license, passport, or Medicare card). Changing banks will take some time, but make good coffee and call it a few management hours. Calling them to change their way by sending a complaint email takes only a few minutes, but the impact can last for decades.

OK … but will this cost me more in the long run?

One of my biggest concerns about divestment was that it would be financially deteriorating.

I’m told to call some ethics funds and ask why their fees are significantly higher than my old fund and expect the fees to decrease over time as the customer base grows I did.

In less than a year, these changes had already been made when Ash was switching finances with the Heaps Better. In December 2020, Future Super announced that it would lower prices and expect further reductions.

Ethical superfunds are still complicated in terms of fees and returns, but it’s worth switching superannuation funds because I know for sure that my money isn’t invested in the fossil fuel industry.

Still, it’s important to do your own research or get advice from a financial adviser to find an option that suits your personal situation, especially what “ethical” really means. .. We offer green options. Both Ash and I used the Responsible Returns tool to find a list of ethical superfunds and banks that fit our values.

However, Brock states: “Fossil fuel companies carry a lot of risk and can be a much poorer investment in the long run.

“For example, at this point, coal companies may have large coal-fired power plants on their balance sheets as millions of valuable assets. But our government (many others) If Australia announces that it will not use coal to generate electricity (as the government does), the carbon bubble will collapse and those assets will become “stranded assets” that plunge in value overnight. “

Did it really make a difference?

Ash and I both called our banks and superfunds and asked if our money was invested in fossil fuels. I was given a pretty whimsical answer about privacy, and Ash was sent a lofty list of hyperlinks to the policy disclosure statement, along with an email advising me to answer the question myself.

It’s easy to feel like you’re talking to a giant threatening a giant bean tree by sending an email with a complaint or question (because Ash has placed it beautifully on the podcast), but we want to see it. Not having a powerful impact For the same reason, thousands of of us who are collectively dissatisfied with these institutions and are keeping our money away from these institutions.

For example, last year, Market Forces launched a divestment campaign in which more than 12,000 members from across the country demanded that UniSuper reduce its fossil fuel share via social media. Pressure has caused UniSuper to drop shares in the miners New Hope and White Haven. There’s still a way to go, but it’s a solid start and driven by customers like us.

Looking at retirement pensions alone, according to a study by the Institute for Sustainable Futures at the University of Technology Sydney, Australia could fund the transition to 100% renewable energy by 2030, saving Australian retirement pensions. Is only 7.7%.

“When so many Australians are transferring their money to fossil-free superfunds, the signal it sends to the market is huge,” Simon Holmes Acourt, director of the Smart Energy Council, told us. Told. “9% of your income votes for decarbonization every two weeks.”

• Jessica Hamilton is a co-host of the Heaps Better podcast.