Australians continue to invest in the production of nuclear weapons through their superannuation. In 2023, major superannuation funds invested at least $3.4 billion in companies that produce the worst weapons of mass destruction.

This report is an update on the policies and practices of the 14 largest Australian public offer superannuation funds. It analyses these funds’ investments in twenty of the companies most involved in nuclear weapons development, production, maintenance and other services.

Findings

• While nuclear weapons are commonly excluded from investment portfolios, the Australian superannuation industry has been slow to adapt to the new normal.
• A study of superannuation funds’ investments in nuclear weapons in 2021 and the new analysis shows that all major funds continue to invest in nuclear weapons companies, with the exception of one (Hostplus).
• Divesting from nuclear weapons companies does not affect returns for superannuation account holders.
• Eight of the funds examined exclude controversial weapons from their MySuper options, but do not include nuclear weapons in their controversial weapons definition. 
• Since 2021, some funds have made progress in the exclusion of nuclear weapons companies from their portfolios.

Recommendations

• All Australian super funds need to adopt controversial weapons exclusion policies that include nuclear weapons in the definition of controversial weapons, and to exclude nuclear weapons companies across the whole of their portfolios, with a zero-revenue threshold in order to comply with evolving global norms, international law and member expectations.
• Super fund trustee directors have a legal duty to act in the best financial interests of the fund-members.