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Fossil Fuel Companies

Substantial involvement in fossil fuel extraction.

These companies have the highest exposure to carbon risk and are unlikely to be able to sufficiently diversify in the short term.

Suggested course of action for super funds: Divestment

ASX 300

    MSCI World (EX AU)

      Diversified Fossil Fuel Companies

      Significant fossil fuel exposure including infrastructure, utilities, transport and diversified companies where fossil fuels constitute a relatively minor part of revenue or net asset value.

      These companies have significant exposure to carbon risk but should be engaged to reduce that risk through the sale of assets or finding alternative sources of revenue. In the event that inadequate action is taken to move fossil fuels from their asset bases and portfolios, divestment becomes the suggested response.

      Suggested course of action for super funds: Divestment/Engagement

      ASX 300

        MSCI World (EX AU)

          Fossil Fuel Lenders & Services

          Indirect fossil fuel exposure. These companies provide services to the fossil fuel industry including financing, insurance, construction and engineering.

          These companies should be engaged and encouraged to find alternative sources of revenue. Should there be inadequate evidence that these companies are reducing their support for the fossil fuel industry consistent with action to avoid catastrophic climate change, or mitigating risks resultant from high exposure to fossil fuel projects or companies, divestment should be considered.

          Suggested course of action for super funds: Engagement

          ASX 300

            MSCI World (Ex AU)