Unfortunately, most Aussies probably don't pay as much attention to their superannuation affairs as they should. Even if you're not very interested in your super, most of us would agree that the custodians of our retirement funds should be using their power for the greater good.
Australian Super funds invest a lot of our money in S&P/ASX 200 Index (ASX: XJO) shares. That gives them considerable weight to throw around when it comes to attending annual meetings and voting on company matters. Especially on issues like climate change, gender equality and other ethical concerns.
Unfortunately, new reporting from Business Insider indicates that most super funds' bark isn't quite matching up to their bite on these matters. The Business Insider article quoted the Australasian Centre for Corporate Responsibility's (ACCR) Director of Climate and Environment, Dan Gocher in saying:
"Just 7 out of 50 funds have shown sustained support for shareholder proposals over 3 years, putting into question the responsible investment practices of a large number of funds."
On matters of climate change, only 7 of the largest funds supported proactive climate change policies more often than they've opposed them over the last 3 years. The reporting notes that there were some funds that barely supported any pro-climate policies at all.
On matters of gender pay equality, we saw a similar story with 9 funds supporting more measures than opposing.
Turning to political lobbying transparency, it was even worse. Just 5 of the funds had positive voting records.
Make a difference with your Australian super fund
If you find these statistics upsetting, I don't blame you. Super is our money at the end of the day. And I think that by extension, super funds, as the custodians of our money, should reflect the views of the people whom 'their' capital truly belongs to when it comes to having a say on how ASX companies are run.
If you feel strongly about this, I would suggest contacting your super fund and letting them know your views. Perhaps you could even switch your fund to a more 'activist' option if you're still not happy.
For better or for worse, money talks in the world of investing. Thus, if you want your money to speak your values, it might be a good time to make it so. There are super funds out there that specialise in ethical investing, but you should still make sure you are getting a good deal on your fees and performance returns. Money talks louder when it's growing at the fastest rate possible!
