Fed: Super funds need help to tackle climate change: institute
23 Mar 2009 12:01 AM
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CANBERRA, March 23 AAP - The Climate Institute has called for investment reforms so superannuation funds can better manage the risks - and potential rewards - from climate change.
With the Australian Institute of Superannuation Trustees, the institute has conducted a survey of how funds plan to manage the risks and opportunities associated with climate change.
According to the survey, a majority of funds that responded are set to do more to better manage the risks and opportunities of climate change.
Among the findings, 85 per cent planned to increase staffing and training to deal with climate change, while 70 per cent don't have a way for calculating exposure to carbon prices.
John Connor, chief executive of the Climate Institute, said there was work to be done so that superannuation funds could better manage climate change risks, such as the physical impact on assets and climate policies.
"The same can be said about the extent to which they are moving on low carbon opportunities," he said in a statement.
"But at least most have made it to first base in considering responsibilities and future planning issues.
"A range of industry and government reforms are needed to encourage funds to better manage long-term risks and key would be reform of incentives to encourage investment decisions to favour long-term returns, and risk management over the short-term gains."