The fossil fuel industry is causing massive environmental damage and driving climate change.

People are inadvertently supporting the fossil fuel industry through the investment decisions of their super funds, the custodians of their retirement savings.

Many super funds have recognised the dangers of climate change, as well as the risks it poses to fossil fuel-related assets. However, the vast majority of Australian super funds are still invested in fossil fuels.

We estimate losses on fossil fuel company investments in fifteen of Australia’s largest default super fund options at over $5.6 billion over the period 2014-15.

Fossil fuel stocks have underperformed over the two years studied, after many financial experts expressed concerns about the sector.

The Paris climate summit confirmed the urgent global need to act on climate change. To have any hope of keeping temperature rise below two degrees, we cannot continue to invest in companies that would expand or prolong the fossil fuel industry.

Super funds need to fully disclose their fossil fuel holdings and immediately divest from pure play fossil fuel companies. They must also engage with diversified companies to encourage a swift exit from the fossil fuel sector.

Super fund members can use Super Switch to examine their exposure to coal, oil and gas companies and take action to get their retirement savings out of fossil fuels.