Fossil Fuel Finance in New...

SECTION ONENew Zealand SuperFund and the ACC

SECTION THREEMaking the transition

SECTION TWOFossil fuel exposure and the case for action

Fossil Fuel Finance in New Zealand Part 2: The Superannuation Fund and ACC

2013

BRIEFING

Fossil Fuel Finance in New Zealand: Part 2: The Superannuation Fund and Accident Compensation Corporation PAGE 1

INTRODUCTION

To achieve this we must wean ourselves off fossil fuels, the primary source of these greenhouse gases, and the financial sector will play a critical role.

This short report by WWF-New Zealand examines the fossil fuel investments of the two largest crown financial institutions, the New Zealand Superannuation Fund and the Accident Compensation Corporation (ACC) and presents the case for a transition away from fossil fuel finance.

The internationally agreed target of keeping global warming below 2 degrees Celsius2 will not be achieved unless all countries shift towards 100 per cent renewable energy (electricity, liquid fuels and industry) or as close as possible to it.3 This requires phasing out the burning of fossil fuels. It has been calculated that burning all current proven fossil fuel reserves4 will result in carbon emissions more than four times larger than the safe ‘carbon budget’ that we must stay within to have a reasonable chance of keeping below the 2 degrees threshold for dangerous climate change.5

To have a 75 per cent chance of staying below the 2 degrees target, 77 per cent of fossil fuel reserves must remain unburned. To have a 50 per cent chance of staying below 2 degrees, just over 60 per cent must remain unburned.6 Both scenarios require the phase-out of fossil fuel use and the rapid uptake of clean, renewable energy technologies.

The fossil fuel industry is currently the recipient of huge investments via the stock markets of the world.

This capital enables coal, oil and gas companies to expand exploration and production into new areas such as tar sands, deep oceans and the Arctic and exploit previously unreachable resources with new technologies such as underground coal gasification. In the past year alone, the top 200 oil, gas and coal mining companies have set aside up to US$674 billion to seek out new fossil fuel reserves and develop new ways of extracting them.9 This capital helps prolong the

fossil fuel era and delay the transition towards a clean energy future. This capital is also at risk of decreasing in value as governments begin to take concerted action to reduce emissions.

This report aims to assess the role of New Zealand’s largest state-owned investors – the New Zealand Superannuation Fund and the Accident Compensation Corporation (ACC) – in financing the fossil fuel industry around the world.

INTRODUCTIONCollectively, we need to significantly reduce the amount of human-made greenhouse gases in the planet’s atmosphere if we are to secure a climate-safe future where people and nature thrive.

“ Smart investors can already see that most fossil fuel reserves are essentially unburnable because of the need to reduce emissions in line with the global agreement.” Professor Lord Stern of Brentford.1

CARBON BUDGETS REQUIRED TO STAY BELOW 2°C WARMING COMPARED TO GLOBAL FOSSIL FUEL RESERVES 7

2011–2050 carbon 2011–2050 carbon Proven fossil fuel budget: 75% probability budget: 50% probability reserves

3000

2500

2000

1500

1000

500

0

Gas

Oil

Coal

Gig

aton

nes

CO

2

Fossil Fuel Finance in New Zealand: Part 2: The Superannuation Fund and Accident Compensation Corporation Fossil Fuel Finance in New Zealand: Part 2: The Superannuation Fund and Accident Compensation Corporation PAGE 3

INTRODUCTION NEW ZEALAND SUPERFUND AND THE ACCIDENT COMPENSATION CORPORATION

The reason for focusing on the state-run investment sector is that these organisations invest a significant amount of public money and also are not restricted by the commercial confidentiality of the private sector so can publish lists of their shareholdings. However, the conclusions of this report are equally relevant to New Zealand’s private sector pension and investment sector.

The state owns four investment agencies: the New Zealand Superannuation Fund, the Accident Compensation Corporation, the Earthquake Commission (EQC) and the Government Superannuation

Fund Authority (state-sector employee’s pension scheme). This report focuses on the first two because they are significantly larger, each with assets of around $20 billion,10 whereas the latter two organisations – EQC and GSFA – have investment assets worth around $2.5 billion11 and $3 billion12 respectively.

This report looks at the equity investments (stocks and shares) held by SuperFund and ACC. These two organisations do have other investments, such as government bonds and in the case of SuperFund direct investments in land and property, which are not relevant to the focus of this report.

“ If we mean to burn all the coal and any appreciable percentage of the tar sands, or other unconventional oil and gas then we’re cooked. [There are] terrible consequences that we will lay at the door of our grandchildren.” Jeremy Grantham, billionaire fund manager 8

THE NEW ZEALAND SUPERFUND AND THE ACC: PURPOSE OF THE FUNDS

1 Carbon Tracker Initiative & Grantham Research Institute. (2013). Unburnable Carbon 2013: Wasted capital and stranded assets. London, Carbon Tracker Initiative. http://carbontracker.live.kiln.it/Unburnable-Carbon-2-Web-Version.pdf

2 The target, agreed through the United Nations Framework Convention on Climate Change (UNFCCC), is to stop global warming exceeding a 2oC increase in average global temperature above pre-industrial levels.

3 WWF. (2011). The Energy Report: 100% Renewable Energy by 2050. Gland, WWF International. http://wwf.panda.org/what_we_do/footprint/climate_carbon_energy/energy_solutions/renewable_energy/sustainable_energy_report/

4 This ‘proven reserves’ figure includes oil, gas and coal that is deemed to have a 90 per cent chance of being extracted. It does not include large as yet untapped and lesser known fossil fuel resources such as the oil under the Arctic and massive potential shale gas deposits around the world. It is estimated these total fossil fuel resources would result in excess of 20,000 Gt CO2 if burned, more than seven times the proven reserves figure.

5 Carbon Tracker Initiative. (2011). Unburnable Carbon: Are the world’s financial markets carrying a carbon bubble? London, Carbon Tracker Initiative. http://www.carbontracker.org/wp-content/uploads/downloads/2012/08/Unburnable-Carbon-Full1.pdf

6 The two carbon budget scenarios are from: Meinshausen et al. (2009). Greenhouse-gas emission targets for limiting global warming to 2 °C. Nature, Vol 458, 1158-1162 (30 April 2009).

7 The two carbon budget scenarios are from: Meinshausen et al. (2009). Greenhouse-gas emission targets for limiting global warming to 2 °C. Nature, Vol 458, 1158-1162 (30 April 2009). The fossil fuel reserves figure is from: Carbon Tracker Initiative. (2011). Unburnable Carbon: Are the world’s financial markets carrying a carbon bubble? London, Carbon Tracker Initiative. http://www.carbontracker.org/wp-content/uploads/downloads/2012/08/Unburnable-Carbon-Full1.pdf

8 Carrington, D. (2013). Carbon bubble will plunge the world into another financial crisis – report. The Guardian, Friday April 19 2013. http://www.guardian.co.uk/environment/2013/apr/19/carbon-bubble-financial-crash-crisis

9 Carbon Tracker. (2013). Unburnable Carbon 2013: Wasted capital and stranded assets. London.

10 See the ACC annual report 2012 and the latest Super Fund monthly performance and portfolio report for details.

11 Earthquake Commission Annual Report 2012. http://www.eqc.govt.nz/sites/ public_files/eqc-ann-report-2012.pdf

12 Government Superannuation Fund Authority. Assets and Liabilities as of June 2012. http://www.gsfa.govt.nz/content/3bd63121-2eb1-4f83-b93d-3aaec21ff954.html

However, government projections suggest that the number of New Zealanders aged over 65 is expected to double between 2005 and 2050 with a corresponding doubling of the cost of providing retirement income through NZS.

The New Zealand Superannuation Fund, or the SuperFund for short, is an organisation that was created by the New Zealand government in 2002 to steadily grow a pot of money through investment to help pay for the increasing cost of state pensions in the future. Its purpose is to reduce the future tax burden for the smaller proportion of working age New Zealanders.

The mission of the SuperFund is to: “Maximise the Fund’s return over the long term, without undue risk, so as to reduce future New Zealanders’ tax burden.” The SuperFund started investing in 2003 with $2.4 billion in cash. As of June 2012, the SuperFund had just under NZ$19 billion of assets, which has since grown to over $20 billion.

The Accident Compensation Corporation (ACC) is New Zealand’s national accident insurance scheme. Through ACC levies, the government raises revenue to pay for medical treatment, ongoing support and/or assistance with income. However, the amount raised through levies each year is not enough to pay for the ongoing longer term costs resulting from injuries so ACC also has significant investments (just over NZ$20 billion in June 2012) in an attempt to cover its costs into the future.

77%OF FOSSIL FUEL RESERVES MUST REMAIN UNBURNED TO STAY BELOW 2°C WARMING

New Zealand Superannuation (NZS) is the state retirement benefit paid to all eligible New Zealanders over the age of 65 and is currently funded each year through tax receipts in the same year.

$40 BILLIONCOMBINED TOTAL ASSETS OF SUPERFUND AND ACC


DISTRIBUTION OF ACC HOLDINGS IN DIFFERENT ASSET CLASSES (AS OF JUNE 2012)18

NEW ZEALAND SUPERFUND AND THE ACCIDENT COMPENSATION CORPORATION

13 New Zealand Superannuation Fund website: Our Governance. http://www.nzsuperfund.co.nz/index.asp?pageID=2145879271 (viewed April 2013)

14 New Zealand Superannuation Fund website: Our Governance. http://www.nzsuperfund.co.nz/ index.asp?pageID=2145879271 (viewed April 2013)

15 See pages 27-29 of NZ SuperFund Annual Report 2012. http://www.nzsuperfund.co.nz/files/Annual%20Reports/NZ_Super_Fund_-_2011_12_Annual_Report_-_website.pdf

16 Figures taken from SuperFund Annual Report 2012: http://www.nzsuperfund.co.nz/files/Annual%20Reports/NZ_Super_Fund_-_2011_12_Annual_Report_-_website.pdf

17 NZ Superannuation Fund. (undated). How We Invest. http://www.nzsuperfund.co.nz/files/How%20We%20Invest.pdf

18 Figures taken from ACC. (2012). Annual Report 2012. http://www.acc.co.nz/PRD_EXT_ CSMP/groups/external_communications/documents/reports_results/wpc115248.pdf

The Guardians are also responsible for appointing a Chief Executive who recruits staff to “assist the Board in the development and implementation of investment policy.”14

The Fund manages a diverse portfolio of assets including equities (stocks and shares), property, infrastructure, fixed income bonds and forests. It employs the services of almost 50 investment management companies around the world to manage some of these assets15 as well as managing some of these investments in-house.

SuperFund’s portfolio is characterised by significant investments in equities, property and infrastructure and land, agriculture and forestry. According to the Fund, this mix reflects its long-term investment horizon and the fact it has low liquidity requirements (i.e. the Fund does not have to be able to turn its investments into cash at short notice).17 This means the Fund can invest in assets that may not grow significantly in the short term, or are prone to fluctuation, but are likely to yield long term growth.

In contrast, ACC’s portfolio is less diverse and takes fewer risks. Over 93 per cent of its holdings are in two broad asset classes: bonds and

equities. Property and infrastructure holdings are relatively small and unlike SuperFund there are no long term investments in land, agriculture and forestry.

ACC has significant bond and equity investments in New Zealand because these are a better fit for ACC’s claims liabilities and are also cheaper to manage than investments in overseas markets. Almost all ACC’s New Zealand investments and most Australian investments are managed by its internal Investment Unit while most offshore investments are managed by external fund management companies.

DISTRIBUTION OF SUPERFUND HOLDINGS IN DIFFERENT ASSET CLASSES (AS OF JUNE 2012)16

NEW ZEALAND SUPERFUND AND THE ACCIDENT COMPENSATION CORPORATION

Equities (65%)

Other (5%)

Fixed income bonds (7%)

Land, agriculture, forestry (8%)

Property & infrastructure (15%)

Fixed income bonds (57.5%)

Other (4%)

Property & infrastructure (2.5%)

Equities (36%)

50INVESTMENT MANAGEMENT COMPANIES AROUND THE WORLD MANAGE SOME NZ SUPERFUND ASSETS

HOW THE FUNDS OPERATEThe SuperFund is overseen by the Guardians of the NZ SuperFund, a crown entity. The Guardians are “responsible for establishing investment policies, standards and procedures for the Fund, including determining the proportion of money allocated to various types of investments and appoint external investment managers to manage different parts of the Fund.”13


1) Positive investments (i.e. actively seeking investments that will have positive ESG outcomes as well as a financial return).

2) Substantial ownership (i.e. companies in which the Fund has a significant stake and therefore can have a major influence upon).

3) Arms length engagement (i.e. monitoring the performance of companies in which the Fund has a proportionately small stake and either engaging in dialogue with and/or using its voting rights regarding ESG issues).

4) Excluding a company from its portfolio either because the company is engaged in an excluded sector or because the company has breached ESG standards.

Regarding the first mechanism (positive investments), the Fund is already engaged in actively seeking out renewable energy and clean technology investments that can provide an adequate return. However, the stability and viability of these investments can be affected by changes in government policy in a range of countries and opportunities to acquire holdings in these sectors can be limited. Increasing clean tech and renewable energy investments is therefore a gradual process.

Regarding the second (substantial ownership), the Fund has, for example, a major investment in New Zealand fuel retailing company Z Energy. This company is taking a proactive and progressive approach to the issue of climate change and is

consequently becoming involved in the development of alternative fuels in New Zealand.25

Regarding the third (arms length engagement), SuperFund has holdings in over 6,000 companies which makes the practicality of implementing this laudable objective unrealistic. It is also difficult to envisage how engaging fossil fuel extraction companies to leave their reserves in the ground would work.

On the fourth (exclusion), the SuperFund currently excludes over 150 companies26 and from time to time publishes divestment decisions for ethical reasons. Currently, the NZ SuperFund excludes companies that are directly involved in:

• the manufacture of cluster munitions

• the manufacture or testing of nuclear explosive devices

• the manufacture of anti-personnel mines

• the manufacture of tobacco

• the processing of whale meat.27

According to the SuperFund: “The… list of excluded companies is regularly reviewed and updated with information from our external screening agencies, peer funds and – from time to time – other stakeholders.”28

There are also cases where breaches of ESG standards are brought to the Fund’s attention and a company not involved in the sectors listed above is added to the exclusion list. For example, in September 2012, the Fund divested from four

25 Z Energy: Sustainability. http://z.co.nz/about-z/who-is-z-energy/what-matters-to-us/sustainability/ (viewed April 2013).

26 Companies excluded from the New Zealand Superannuation Fund as at 31 February 2013 http://www.nzsuperfund.co.nz/files/Responsible%20Investment%20documents/Exclusion%20List%2031%20February%202013%20for%20web.pdf

27 New Zealand Superannuation Fund website: Exclusion Decisions. http://www.nzsuperfund.co.nz/index.asp?pageID=2145883153 (viewed May 2013).

28 Fassihi, F. (2010). Iran Cuts Fuel Subsidy. Wall Street Journal, December 20, 2010 http://online. wsj.com/article/SB100014240 52748704138604576029170655459688.html

29 New Zealand Superannuation Fund website: Exclusion Decisions. http://www.nzsuperfund.co.nz/index.asp?pageID=2145883153 (viewed May 2013).

NEW ZEALAND SUPERFUND AND THE ACCIDENT COMPENSATION CORPORATION NEW ZEALAND SUPERFUND AND THE ACCIDENT COMPENSATION CORPORATION

There is also recognition within SuperFund of the importance of climate change, resource sustainability and the need to modify to some extent its approach to investment in response to these challenges.19 These policies and approaches potentially provide scope for a transition away from fossil fuel finance.

Although ACC has its own ethical investment policy which can be found in its Annual Report, this is not as well documented as that of the SuperFund. The Fund also provides responsible investment advice and services to ACC.20 The following therefore focuses on the SuperFund’s approach to responsible investment.

Under legislation, the Fund must equally take into account the following three factors when making an investment decision:

• Best-practice portfolio management

• Maximising return without undue risk to the Fund as a whole

• Avoiding prejudice to New Zealand’s reputation as a responsible member of the world community

It has been left to the Guardians of the SuperFund to interpret what these three terms mean, as the legislation does not provide any guidance. Of these factors, the first (best practice) and the third (reputation) at least indicate that the SuperFund should engage in socially responsible investment practices, and the organisation has developed policies and practices in this direction.

For example, The Fund’s Responsible Investment Framework21 states: “We are committed to integrating consideration of environmental, social and governance (ESG) issues into our investment decision making process.” The Fund and ACC are both signatories to the United Nations Principles for Responsible Investment (UNPRI) (see Appendix 1 for a list of these principles)

which is the internationally recognised benchmark for institutional investors’ management of environmental, social, and governance issues (ESG).22

The Guardians are also members of the Investor Group on Climate Change (IGCC) Australia/New Zealand which has issued statements urging more decisive action on climate change from world governments. The group’s website states: “IGCC members are aware that as responsible owners they can play a role in encouraging a proactive response to what is one of the most significant environmental impacts on investors, business, and society.”23

What does being a signatory to the UN Principles or a member of the Investor Group on Climate Change mean in practice for the management of the Fund’s portfolio in relation to climate change issues? The Fund’s Responsible Investment Framework24 sets out four main mechanisms by which it pursues responsible investment:

19 Drew, A. (2012). Investment Themes and Resource Sustainability. New Zealand Superannuation Fund Presentation to Responsible Investment Briefing, Auckland, November 15, 2012. http://www.nzsuperfund.co.nz/files/Speeches%20and%20Presentations/2012_11_15_-_Aaron_Drew_-_Investment_Themes_and_Resource_Sustainability.pdf

20 New Zealand Superannuation Fund website:. Responsible Investment. http://www.nzsuperfund.co.nz/index.asp?pageID=2145876519 (viewed May 2013).

21 New Zealand Superannuation Fund. (2012) Responsible Investment Framework. September 2012. http://www.nzsuperfund.co.nz/files/Responsible%20Investment%20documents/Responsible_Investment_Framework.pdf

22 New Zealand Superannuation Fund website:. Responsible Investment. http://www.nzsuperfund.co.nz/index.asp?pageID=2145876519 (viewed May 2013).

23 Investor Group on Climate Change website: http://www.igcc.org.au/who_are_we (viewed May 2013)

24 New Zealand Superannuation Fund. (2012) Responsible Investment Framework. September 2012. http://www.nzsuperfund.co.nz/files/Responsible%20Investment%20documents/Responsible_Investment_Framework.pdf

SuperFund and ACC already have policies and practices relating to ethical investment, or socially responsible investment as it is also known.

ETHICAL INVESTMENT POLICIES

>150 COMPANIES CURRENTLY EXCLUDED FROM NZ SUPERFUND INVESTMENTS

COMPANIES THAT MANUFACTURE TABACCO ARE CURRENTLY EXCLUDED FROM THE SUPERFUND

companies including the Freeport-McMoRan copper and gold mine in West Papua and the Tokyo Electric Power Company (owner of the Fukushima nuclear power facility) for reasons of repeated human rights abuses and environmental pollution respectively. And in May 2013, SuperFund excluded Barrick Gold, the world’s largest gold mining company, from its portfolio due to “a series of security-related, environmental and community problems over a lengthy time period.”29

No company or sector has, to date, been placed on the exclusion list as a result of concerns over climate change. However, the fact that sectors can be excluded for ethical reasons establishes an important precedent and the steady increase in the importance of climate change as an ethical investment issue suggests there is scope for considering the exclusion of fossil fuel investments from portfolios.



31 ACC. (2012). Annual Report 2012. http://www.acc.co.nz/PRD_EXT_CSMP/groups/external_communications/documents/reports_results/wpc115248.pdf 32 Carrington, D. (2013). Carbon bubble will plunge the world into another financial crisis – report. The Guardian, Friday April 19 2013. http://www.guardian.co.uk/environment/2013/apr/19/carbon-bubble-financial-crash-crisis

EXPOSURE AND THE CASE FOR ACTION EXPOSURE AND THE CASE FOR ACTION

indirect equities will no doubt include the fossil fuel sector, an analysis of the extent of fossil fuel holdings is not possible because the nature of these financial instruments means there is no list of actual companies in which money is being invested.

Fossil fuel investments comprise 7.67 per cent of the Fund’s direct equity holdings, with the majority of these being in the oil and gas sector. These direct equity fossil fuel holdings account for only 2.35 per cent of the Fund’s total investment portfolio. If analysis of indirect equities was possible, the proportion of fossil fuels in the Fund’s overall investment portfolio would be higher, although probably not much more than 5 per cent. The coal sector accounts for just 1.38 per cent of direct equity holdings, or 0.42 per cent of the Fund’s total holdings. Therefore, the Fund’s total investments in coal are likely to be less than 1 per cent of its overall portfolio once indirect equities are included.

While some of these percentages are relatively low, the total amounts of public money invested in fossil fuels are significant. As of June 2012, the Fund had almost NZ$441 million in fossil fuel direct equities, with the majority in the oil and

gas sector. If indirect equity fossil fuel investments were counted, the amount would be higher.

Of the 48 countries in which the Fund has equity holdings, 37 include fossil fuel investments (see Appendix 2 for a list). In terms of the value of the Fund’s fossil fuel direct equities in different countries, the largest by far is the USA where the Fund has over NZ$100 million invested (see Appendix 3). Proportionately, the largest is Russia where 70 per cent of the Fund’s total equity in the country is tied up in fossil fuel companies (see Appendix 4).

SuperFund’s NZ$441 million of fossil fuel direct equity investments are spread across 454 companies, the largest being a NZ$24.5 million investment in US oil giant Exxon Mobil and the smallest being NZ$788 holding in OilSands Quest Inc, a US company engaged in oil exploration and development in Canada. On a country-by-country basis, not surprisingly, the largest number of fossil fuel companies in which the Fund has direct equity holdings is in the US, with 146 companies (see Appendix 5). Next is Canada (84 companies) and the UK (38 companies).

The SuperFund has direct equity investments in 92 of the top 100 oil and gas companies in the world (see Appendix 6) and 66 of the top 100 coal companies in the world (see Appendix 7). Together these 158 companies have fossil fuel reserves equivalent to just over 690 Gt of CO2. This is 40 Gt more than the remaining carbon budget to 2050 that would give us a reasonable chance of staying within the internationally agreed 2 degrees warming target.

ACCAs of June 2012, ACC had total reserves of $20.4 billion. Of this, $7.37 billion (36 per cent) was invested in direct equities.31 Although ACC invests in fewer companies, nearly 1,400 compared to over 6,000 for the Fund, the total amount invested in this type of equity is greater. Similarly, the total amount of ACC’s fossil fuel holdings

EXPOSURE TO FOSSIL FUEL INVESTMENTS

“The scale of ‘listed’ unburnable carbon [worldwide]… is astonishing… ‘Business as usual’ is not a viable option for the fossil fuel industry in the long term. [The market] is assuming it will get early warning, but my worry is that things often happen suddenly in the oil and gas sector.” Paul Spedding, an oil and

gas analyst at HSBC 30

in direct equity, NZ$626.8 million, is higher than the Fund’s.

The majority of ACC’s fossil fuel investments are in the oil and gas sector. ACC has more than twice as much direct equity as the SuperFund invested in the coal extraction sector and also a higher proportion of its fossil fuel investments (30 per cent) are in the coal sector compared to the Fund (16 per cent). The largest ACC fossil fuel investment is an almost NZ$65 million holding in Australian

coal mining company BHP Billiton and the smallest is a NZ$23,652 investment in New Zealand company Khyber Petroleum.

ACC supplied an alphabetical list of its equity investment by company only, so a similar country-by-country analysis to that undertaken for the Fund has not been possible.

It has been possible to examine ACC’s investments in the top 100 oil and gas companies and the top 100 coal companies (see Appendix 8

and Appendix 9). As with the overall investment picture, compared to the SuperFund, ACC invests in a smaller number of the top 100 companies in both sectors but has more money invested. ACC has NZ$181.4 million invested in 18 of the top 100 coal companies and NZ$279 million invested in 27 of the top 100 oil and gas companies.

In conclusion, both organisations invest a significant sum in the fossil fuel sector, amounting to over $1 billion of taxpayer’s money, and the SuperFund’s contribution to this as calculated in this report is almost certainly an underestimate. However, this still comprises a relatively low proportion of total investments suggesting a transition away from fossil fuel finance is feasible.

Percentage of SuperFund and ACC portfolios invested in fossil fuels Amount invested

(NZ$ millions)Proportion of Equities (%)

Proportion of all investments (%)

SuperFund

Coal 79.29 1.38 0.42*

Oil, gas & services 361.45 6.29 1.93*

All fossil fuels 440.74 7.67 2.35*

Accident Compensation Corporation

Coal 190.4 2.6 0.9

Oil, gas & services 436.4 5.9 2.2

All fossil fuels 626.8 8.5 3.1

* Please note: this is the proportion of total holdings accounted for by the SuperFund’s direct equity fossil fuel investments. The SuperFund’s total fossil fuel investment proportion will be higher due to the Fund’s indirect equity holdings, some of which will be in fossil fuels. These were not part of this analysis because a company list is not available due to the nature of these investments.

SuperFund and ACC Investments in the Top 100 coal companies and top 100 oil and gas companies

Coal Oil and gas

Number of companies

Amount invested (NZ$ millions)

Number of companies

Amount invested (NZ$ millions)

SuperFund 66 77.6 92 222.5

ACC 18 181.4 27 279

SUPERFUNDThe total value of SuperFund investment at the end June 2012 was NZ$18.7 billion (after tax). According to the Fund’s 2012 annual report, about 65 per cent of assets are invested in equities (stocks and shares). However, less than half of this equity investment (31 per cent of the value of all assets, $5.74 billion) comprises “direct exposure to listed companies.” WWF-New Zealand has analysed these listed companies to assess the extent of SuperFund’s investments in fossil fuels. The Fund’s major investments in New Zealand, such as fuel retailer Z Energy, have not been included in this analysis because, as a major shareholder, the Fund is in a position to wield significant influence over such companies compared to its arms-length equity holdings. Also, the Fund is not a major shareholder in any fossil fuel extraction company in New Zealand.

The SuperFund also has indirect investments in equities, comprising just over half of its total equity holdings in 2012. These ‘indirect equities’ are held through even more arms-length financial instruments known as derivatives. Although these

FINANCE INDUSTRYThe finance industry has a critical role to play in keeping global warming within the 2 degrees Celsius limit agreed by governments, and steering the world towards low carbon economies.

This requires transitioning away from financing the extraction of fossil fuels and also ramping up investment in clean, renewable energy technologies.

Research has shown that it is possible for the world to make this shift towards renewable energy but it cannot happen without a shift in finance.

© S

hutterstock / pryzmat / W

WF


UK analysts Carbon Tracker set out in a 2011 report, ‘Unburnable Carbon’, how the finance industry is creating a ‘Carbon Bubble’ which, like all bubbles, is set to burst.34 The question is not whether governments will get serious about constraining emissions to meet their agreed 2degrees Celsius target, it is when they will get serious and how stringent the action will need to be.

It is possible that the IPCC’s fifth assessment report in 2013/2014 will provide the catalyst for significant action or perhaps it will be a string of extreme weather events associated with climate change. Whatever the stimulus, it is a matter of time before significant action is taken, and when this happens, governments will need to ensure that most existing fossil fuel reserves (let alone new resources that are discovered) remain unburned. According to research

conducted for the Investor Group on Climate Change reserves account for approximately half the value of oil and gas companies.35

It is hard to predict how fast and how far investor confidence in the fossil fuel industry will tumble, but the smart investors will be those who are ahead of the pack in the transition away from fossil fuel finance rather than following the pack right up to the point where the bubble bursts.

Theoretically, the canaries in the coal mine for the financial sector are the ratings agencies, which are supposed to conduct detailed analysis of the credit worthiness of companies and rate the level of risk associated with investing in them. Analysis and evidence is already emerging from these agencies, as well as others, that fossil fuel investments are not necessarily the smartest use of money.

“Despite its devastating scale, the banking crisis was at its heart an avoidable crisis: the threat of significant carbon write-down has the unmistakable characteristics of the same endemic problems.” Lord McFall, former chair of the UK House of Commons Treasury Select Committee33



34 Carbon Tracker Initiative. (2011). Unburnable Carbon: Are the world’s financial markets carrying a carbon bubble? London, Carbon Tracker Initiative. http://www.carbontracker.org/wp-content/uploads/downloads/2012/08/Unburnable-Carbon-Full1.pdf

35 Smith, M.H. (2013). Assessing Climate Change Risks and Opportunities for Investors: Oil and Gas Sector. Australia National University and Investor Group on Climate Change. http://www.igcc.org.au/Resources/Documents/oil_gas_assessing_climate_change_risks_for_investors.pdf

For example, in November 2012 a report by ratings agency Moody’s highlighted the fact that some fossil fuel investments are already being affected by the shift to renewables and the ongoing expansion of renewable energy “will continue to erode the credit quality” of fossil fuel based electricity generation companies in the near and medium term.36

In March 2013, ratings agency Standard and Poor’s published an analysis looking at “what a carbon constrained future could mean for oil companies’ credit worthiness”. Their conclusion is that, as government policy to reduce emissions becomes more widespread and more effective, the oil industry will see a “deterioration in… financial risk profiles.” The companies affected first, and affected most, will be the smallest and also those most exposed to unconventional fossil fuel extraction such as oil sands.37

Banking giant HSBC has also investigated the issue with two recent pieces of analysis. The first, on the coal industry, projects that if governments act to reduce emissions it could reduce coal asset valuations by up to 44 per cent, with those companies most dependent

on coal for their revenue being hit hardest and those stock exchanges with significant numbers of mining companies listed also being affected.38

In January 2013 it was reported that HSBC analysis of the oil industry also projects a significant loss in value for oil companies if the extent of government action to reduce emissions is in line with the globally agreed target of keeping global warming below 2 degrees.39

It is also important to understand that the extent to which Carbon Capture and Storage (CCS) could alter this situation is very limited. Even under the International Energy Agency’s (IEA’s) most optimistic scenario where investment in CCS is assumed to be higher than it is at present, CCS will manage to extend the carbon emissions budget to 2050 by only 125Gt.40 In other words, rather than having to leave 77 per cent of fossil fuel reserves unburned this would mean leaving 72 per cent unburned.

Fundamentally, the massive fossil fuel reserves already on the books represent a major financial risk for investors in the situation where governments take concerted action to meet their international promises.

36 Global Credit Research. (2012). Moody’s: wind and solar power will continue to erode thermal generators credit quality. 6 November 2012.

37 Standard and Poor’s. (2013). What a carbon-constrained future could mean for oil companies creditworthiness. March 1 2013, London, Standard and Poor’s. http://www.carbontracker.org/wp-content/uploads/downloads/2013/03/SnPCT-report-on-oil-sector-carbon-constraints_Mar0420133.pdf

38 Clark, P. (2012). Global warming: Climate change needs action but it has a cost. Financial Times. November 4, 2012.

39 Parkinson, G. (2013). Unburnable carbon – value of fossil fuel giants at risk. RenewEconomy, 29 January 2013. http://reneweconomy.com.au/2013/unburnable-carbon-value-of-fossil-fuel-giants-at-risk-71370

40 Carbon Tracker Initiative & Grantham Research Institute. (2013). Unburnable Carbon 2013: Wasted capital and stranded assets. London, Carbon Tracker Initiative. http://carbontracker.live.kiln.it/Unburnable-Carbon-2-Web-Version.pdf

EXPOSURE AND THE CASE FOR ACTION EXPOSURE AND THE CASE FOR ACTION

THE FINANCIAL CASE FOR TAKING ACTION

“Analysts say you should ride the train until just before it goes off the cliff. Each thinks they are smart enough to get off in time, but not everyone can get out of the door at the same time. That is why you get bubbles and crashes.” James Leaton, Director Carbon Tracker initiative and former PwC consultant32

HALF OF OIL AND GAS COMPANY VALUE IS ACCOUNTED FOR BY RESERVES

44% VALUE THAT COULD BE WIPED OFF COAL ASSETS IF GOVTS ACT TO REDUCE EMISSIONS


FEATURE

THE MORAL CASE FOR TAKING ACTION Recent evidence suggests global warming is already having an impact on our lives. The Australian Government’s Climate Commission has linked global warming with Australia’s 2012/13 ‘angry summer’ that saw record high temperatures alongside devastating fires and extreme rainfall that led to flooding.

41 The Climate Commission. (2013). The Angry Summer. http://climatecommission.gov.au/ wp-content/uploads/6868R-DCCEE-Angry-Summer-Report_lowres.pdf

42 Trenberth, K. (2012). Opinion: Super Storm Sandy – What role did climate change play in this week’s massive hurricane? The Scientist. October 31, 2012 http://www.the-scientist.com/?articles.view/articleNo/33084/title/Opinion--Super-Storm-Sandy/

43 See, for example: http://www.noaanews.noaa.gov/stories2012/20121205_arcticreportcard.html

44 WMO. (2012). 2012: Record Arctic Sea Ice Melt, Multiple Extremes and High Temperatures. Press Release 966, 28 November 2012. Geneva, World Meteorological Organisation. http://www.wmo.int/pages/mediacentre/press_releases/pr_966_en.html

45 Trenberth, K. (2012). Opinion: Super Storm Sandy – What role did climate change play in this week’s massive hurricane? The Scientist. October 31, 2012 http://www.the-scientist.com/?articles.view/articleNo/33084/title/Opinion--Super-Storm-Sandy/

CAN SUPERFUND AND ACC TRANSITION AWAY FROM FOSSIL FUELS?SuperFund and ACC have over NZ$1 billion of New Zealanders’ money invested in the fossil fuel sector, however, the proportions of their portfolios accounted for by fossil fuels are relatively modest.

A steady transition away from fossil fuel investments would therefore be plausible. At least some of this money could instead be invested in the growing renewable energy and clean technology sectors.

As of June 2012, fossil fuels comprised 7.67 per cent of SuperFund direct equity investments, while investments in coal companies comprised 1.38 per cent of direct equities. These direct equity fossil fuel investments comprise only 2.35 per cent of the Fund’s overall portfolio with coal direct equities contributing only 0.42 per cent. Although it has not been possible to assess the value of SuperFund’s indirect equity fossil fuel investments, it is likely that total fossil fuel investments would be in the region of 5 per cent of the Fund’s overall portfolio and coal investments less than 1 per cent. However, a transition away from fossil fuel investments would likely focus on direct equities given the potential

difficulty of separating out fossil fuels in the Fund’s indirect equity holdings.

The proportions for ACC’s fossil fuel investments are broadly similar to the Fund’s. The fossil fuel sector accounts for 8.5 per cent of ACC equity investments but only 3.1 per cent of ACC’s total holdings. Coal accounts for 2.6 per cent of equities and 0.9 per cent of ACC’s entire portfolio.

The evidence emerging from financial analysts suggests it would make sense to start the transition away from fossil fuel investments by divesting from companies involved in coal extraction for energy and companies involved in unconventional oil extraction such as tar sands. These are the most polluting fossil fuels and are therefore most likely to be affected sooner by more stringent policies aimed at reducing emissions. For example, SuperFund has direct

EXPOSURE AND THE CASE FOR ACTION MAKING THE TRANSITION

The Commission stated: “Australia’s Angry Summer shows that climate change is already adversely affecting Australians…It is highly likely that extreme hot weather will become even more frequent and severe in Australia and around the globe over the coming decades.”41

The intensity of ‘super storm Sandy’, which battered the east coast of the USA in October 2012, is thought to have been made worse by the above-average sea temperatures along the US eastern seaboard at the time. At least part of the sea temperature anomaly is “very likely the result of global warming.” 42

In addition, 2012 saw a record summer arctic ice melt.43 According to Michel Jarraud, Secretary General of the World Meteorological Organisation: “The alarming rate of its melt this year highlighted the far-reaching changes taking place on Earth’s oceans and biosphere. Climate change is taking place before our eyes and will continue to do so as a result of the concentrations of greenhouse gases in the atmosphere, which have risen constantly and again reached new records.”44

These are just a few examples to illustrate the fact that it is likely that we are beginning to experience changes to our climate as a result of global warming, even though the average global temperature has only risen 0.8 degrees Celsius above

46 Standard and Poor’s. (2013). What a carbon-constrained future could mean for oil companies creditworthiness. March 1 2013, London, Standard and Poor’s. http://www.carbontracker.org/wp-content/uploads/downloads/2013/03/SnPCT-report-on-oil-sector-carbon-constraints_Mar0420133.pdf

47 IMPAX. (2013). Beyond Fossil Fuels: The Investment Case for Fossil Fuel Divestment. London. IMPAX Asset Management. http://www.impaxam.com/media/178162/20130704_impax_white_paper_fossil_fuel_divestment_uk_final.pdf

pre-industrial levels. This increased average temperature, and the resulting change to the climate, is creating what is being called a ‘new normal’45 in terms of the frequency and severity of extreme weather events.

This ‘new normal’ resulting from only 0.8 degrees warming also illustrates the fact that the 2 degrees threshold set by governments should be seen as an absolute maximum because it is still likely to result in devastation and misery for many millions of people.

It is imperative that action is taken to stay as far below 2 degrees as possible. While governments need to take the lead and correct market failures, businesses, communities and individuals also need to act. The finance industry is no different. As already mentioned, the finance industry, on behalf of its individual clients, invests huge sums and, through its actions, can either help or hinder the transition towards low carbon economies and preventing dangerous climate change.

Sections of the finance industry have already recognised the importance of climate change and have started to take steps such as making investments in the renewable energy and clean technology sectors. Making a positive contribution also entails helping to make sure 77 per cent of current fossil fuel reserves remain unburned by starting to withdraw from fossil fuel investments. While action like this from SuperFund and ACC may not be a ‘silver bullet’, it would send an important signal and demonstrate that key organisations in the financial sector are prepared to play their part.

3.1% PROPORTION OF ACC TOTAL PORTFOLIO IN FOSSIL FUELS

equity investments in several companies heavily involved in unconventional oil extraction (e.g. oil sands) such as Canadian Oil Sands Ltd, Canadian Natural Resources Ltd and Cenovus Energy Inc. These companies were highlighted as examples of those more at risk in a recent study by rating agency Standard and Poor’s.46

The transition could then gradually move on to companies involved solely in ‘novel’ fossil fuel extraction (e.g. fracking for gas) that is adding yet more fossil fuel to the overall level of reserves. The last phase of the transition out of fossil fuel investment would be the more conventional oil and gas industry. Conventional oil and gas is potentially the most challenging part of the transition because these stocks can provide a buffer for investors like SuperFund and ACC against shocks in energy markets. For example, price spikes in the oil and gas sector can reduce the value of an investor’s holdings in other sectors (where operating costs have increased). By also holding oil and gas stocks, the value of which increases with such price spikes, an investor can even-out the impact on their portfolio.

However, for investors like SuperFund with long-term investment horizons, the short-term fluctuation of oil and gas prices is not necessarily a major issue. Also, research just released by IMPAX Asset Management analysing historical data over the past seven years shows that eliminating fossil fuel investments from a portfolio would actually have a small positive impact on returns.47


The financial case for a transition may be strong enough for both organisations to implement a steady transition while staying within their remit of maximising return. However, if the financial case is not yet accepted or understood, could the organisations begin a transition based on ethical grounds?

As far as SuperFund is concerned, such a transition could be seen as a logical next step for an organisation with an increasing focus on natural resource issues and climate change. The fact that SuperFund and ACC already exclude whole sectors, such as tobacco, that are entirely legal and potentially profitable suggests such a move may be possible within the bounds of their ‘best practice’ obligations. In fact, what could be considered as investment portfolio best practice is evolving all the time. For example, in the first six months of 2013, the pension funds of ten US cities48 have announced their intention to divest from fossil fuels along with the endowment funds of four US colleges.49 In addition, Storebrand, a major Norwegian pension fund controlling about NZ$95 billion of investments, has just announced it is divesting from 19 companies in the coal and oil sands sectors.50

MAKING THE TRANSITION

Percentage of SuperFund and ACC portfolios invested in fossil fuels SuperFund ACC

Direct Equities All investments* Equities All investments

Coal 1.38 0.42 2.6 0.9

Oil, gas & services 6.29 1.93 5.9 2.2

All fossil fuels 7.67 2.35 8.5 3.1

* Please note: this is the proportion of total holdings accounted for by the SuperFund’s direct equity fossil fuel investments. The SuperFund’s total fossil fuel investment proportion will be higher due to the Fund’s indirect equity holdings, some of which will be in fossil fuels. These were not part of this analysis because a company list is not available due to the nature of these investments.

48 Clark, P. (2013). More US cities join push to sell off fossil fuel investments. Financial Times, 26 April 2013. http://www.ft.com/cms/s/0/bbe0c300-ad86-11e2-a2c7-00144feabdc0.html

49 Goldenburg, S. (2013). San Francisco and Seattle lead US cities pulling funds from fossil fuel firms. The Guardian. 26 April 2013. http://www.guardian.co.uk/environment/2013/apr/25/us-cities-climate-divestment-fossil-fuels

50 Endresen, R. (2013). Kicking out coal and oil. Dagens Næringsliv, Friday 5 July 2013.

51 The more detailed description of the target is: preventing average warming from exceeding 2 degrees Celsius above pre-industrial levels.

52 See page 25 of the NZ SuperFund Annual Report 2011-12: http://www.nzsuperfund.co.nz/files/Annual%20Reports/NZ_Super_Fund_-_2011_12_Annual_Report_-_website.pdf

53 See: NZ SuperFund, ‘Our Governance’: http://www.nzsuperfund.co.nz/index.asp?pageID=2145879271

54 See: http://www.legislation.govt.nz/bill/member/2012/0081/latest/DLM4297809.html

CONCLUSION“Given our long-term investing horizon, it is particularly important that our investment portfolio is future-proofed against wider economic, social and environmental trends.” Gavin Walker, Chair,

Guardians of the New Zealand SuperFund, 6 November 201255

The finance industry has a vital role to play in the transition towards low carbon economies.

This role is even more important given that over three quarters of current fossil fuel reserves must remain unburned if we are to have a decent chance of staying within the internationally agreed 2 degrees warming threshold.

The two largest crown financial institutions – SuperFund and ACC – have over NZ$1 billion of tax payer’s money invested in equities in the fossil fuel sector. Although this is a large amount of money, it still represents less than 5 per cent of their total assets, suggesting a transition away from these investments is feasible in terms of overall portfolio management.

Both SuperFund and ACC have policies and a track record when it comes to ethical investment. Regarding climate change, SuperFund is already making positive investments in renewable energy. However, while investing more in renewable energy is important, equally critical is reducing investment in fossil fuels.

The fundamental challenge does not relate to working with oil, gas and coal companies to make their operations less environmentally damaging. It is about shifting investments away from fossil fuels because we simply cannot burn most of the oil, gas and

coal currently on the books, let alone go after new resources in tar sands, the arctic, deep oceans and through fracking for shale gas.

The moral argument for divestment is compelling. If we continue to invest in finding and extracting fossil fuels, we are locking-in high levels of warming and a precarious future for humanity and many of the species around us. The finance industry has a significant responsibility to play its part in helping to avoid such a future; state-owned financial institutions perhaps even more so. Our government has committed to the 2 degrees threshold so taking action that is consistent with this commitment would seem to be entirely appropriate for a crown financial institution.

The financial case for divestment is also powerful. The risk of a significant loss in the value of fossil fuel companies is real and increasingly recognised by ratings agencies – the canaries in the coal mine of the financial sector – and other financial institutions. While every investor may believe they are the smartest in the business, and are sharp enough to get off the train before it crashes, the global financial crisis yet again highlighted the dangers of following the financial herd until the last minute.

The SuperFund and ACC already exclude several sectors from their investment portfolio, including tobacco. Precedents therefore exist

for excluding companies on ethical grounds even though such companies are involved in legal and profitable lines of business. Precedents are also being set regarding fossil fuel divestment with cities and colleges in the US, and now a Norwegian Pension Fund, leading the way.

WWF-New Zealand calls on the SuperFund and ACC to divest from direct equities in the fossil fuel sector. This can’t happen immediately; a steady and planned transition is required, starting with companies involved in extracting the most polluting forms of energy. But happen it must if we are to achieve a climate safe future. For ACC and SuperFund, there is a whole world of potential investment beyond the few per cent of their portfolios currently tied up in fossil fuels so a gradual exit is not going to undermine their ability to make a good return.

If the two organisations are unwilling under current legislation to take this action, WWF-New Zealand calls on policy-makers to amend the legislation in order to provide the necessary direction for the crown financial institutions.

Ultimately, there are no silver bullets for addressing climate change. There is no single solution, no single action and no single actor that can set the world on a low emissions pathway. Everyone – individuals, communities, businesses and governments – needs to play their part. Financial institutions are no different. While SuperFund and ACC’s transparency regarding their investments has facilitated the analysis in this report, the conclusions are equally valid for private investors and pension funds.

Best practice for investment portfolio managers is continuing to evolve as funds controlled by cities and colleges in the United States start to divest from coal, oil and gas. There is every reason for this shift to begin in New Zealand as well. It is time to move away from fossil fuel finance in New Zealand, increase investments in clean energy and make our money work for the planet rather than against it.

55 New Zealand Superannuation Fund website: Organisational ESG priorities: Chair’s Statement on Environmental, Social and Governance Issues. http://www.nzsuperfund.co.nz/index.asp?pageID=2145899578 (viewed May 2013).

In addition, as part of international climate negotiations the New Zealand government has committed to achieving the two degrees Celsius target.51 It could reasonably be argued that action by Crown Financial Institutions in support of meeting this commitment is entirely consistent with their obligation to ‘avoid prejudice to New Zealand’s international reputation’.

In the absence of such a voluntary approach being deemed appropriate by SuperFund and ACC, the government could step in to provide strategic guidance. For example, in May 2009, Minister of Finance Bill English directed the SuperFund to consider increasing the allocation of New Zealand assets in the Fund (i.e. invest more in New Zealand).52 According to the Fund’s website,

“Under the law, the Minister of Finance may give directions to the Guardians regarding the Government’s expectations as to the Fund’s performance, but must not

give any direction that is inconsistent with the duty to invest the Fund on a prudent, commercial basis.”53

Ultimately, the most robust way to ensure all crown investment agencies shift their investment strategies would be to implement a bill amending the various acts that govern the operation of these agencies. Such bills have previously been mooted but have not garnered enough support. Most recently, in late 2012, Dr Russell Norman MP initiated a private members bill – The Climate Change (New Zealand Superannuation Fund) Bill54 – which would have required Guardians of New Zealand Superannuation Fund to consider the implications of their investment decisions upon climate change.

Although this bill was defeated at its first reading, it provides an example of the type of legislation that could create enough flexibility for the Fund and ACC to start a transition away from fossil fuel investments.


APPENDICIES APPENDICIES

120

100

80

60

40

20

0

APPENDIX 1: UN Principles of Responsible InvestmentThe SuperFund works to apply the 6 UN principles of responsible investment, which are:

Principle 1: We will incorporate ESG issues into investment analysis and decision-making processes.

Principle 2: We will be active owners and incorporate ESG issues into our ownership policies and practices.

Principle 3: We will seek appropriate disclosure on ESG issues by the entities in which we invest.

Principle 4: We will promote acceptance and implementation of the Principles within the investment industry.

Principle 5: We will work together to enhance our effectiveness in implementing the Principles.

Principle 6: We will each report on our activities and progress towards implementing the Principles.

APPENDIX 2: Value of NZ SuperFund Direct Investments in Publicly Listed Companies, by Country (as of June 2012)

Country Coal Oil&Gas Fossil Total Country Total Fossil %

1 Australia 9769373 9971487 19740860 518723824 3.81

2 Austria 0 2189461 2189461 25491293 8.59

3 Belgium 0 7912 7912 14407703 0.05

4 Brazil 19959079 21748957 41708036 128677479 32.41

5 Canada 3714505 18180768 21895273 129196120 16.95

6 Chile 0 1470749 1470749 18540890 7.93

7 China 6147398 30982471 37129869 175229354 21.19

8 Colombia 0 2886523 2886523 8554491 33.74

9 Cyprus 0 0 0 8323 0.00

10 Czech Rep 0 0 0 3997936 0.00

11 Denmark 0 0 0 41863283 0.00

12 Egypt 0 0 0 3121613 0.00

13 Finland 0 47887 47887 10057115 0.48

14 France 572426 16198125 16770551 119243910 14.06

15 Germany 3829947 0 3829947 87510788 4.38

16 Greece 32747 61955 94702 1033155 9.17

17 Hong Kong 1546209 1142764 2688973 108643605 2.48

18 Hungary 0 557567 557567 3894076 14.32

19 India 2582977 7365412 9948389 58446060 17.02

20 Indonesia 1190352 1053585 2243937 23698650 9.47

21 Ireland 0 0 0 3550908 0.00

22 Israel 0 350919 350919 7727644 4.54

23 Italy 0 7813950 7813950 27878885 28.03

24 Japan* 4646036 13537299 18183335 295299315 6.16

25 Malaysia 0 1539561 1539561 39554572 3.89

26 Mexico 2316169 0 2316169 45771501 5.06

27 Morocco 0 0 0 580660 0.00

28 Netherlands 0 111747 111747 30144648 0.37

29 N.Zealand 0 22495094 22495094 1155865647 1.95

30 Norway 0 3999299 3999299 11666287 34.28

31 Peru 0 0 0 6740664 0.00

32 Philippines 0 0 0 7321684 0.00

33 Poland 218441 1287106 1505547 14547155 10.35

34 Portugal 0 0 0 2278020 0.00

35 Puerto Rico 0 0 0 140611 0.00

36 Russia 746394 39602085 40348479 57296774 70.42

37 Singapore 146739 1084291 1231030 55441518 2.22

38 S.Africa 5556497 0 5556497 75557561 7.35

39 S.Korea 0 4597358 4597358 147541533 3.12

40 Spain 0 3467809 3467809 32685462 10.61

41 Sweden 0 363758 363758 35311596 1.03

Country Coal Oil&Gas Fossil Total Country Total Fossil %

42 Switzerland 0 966645 966645 123955136 0.78

43 Taiwan 0 1097076 1097076 100403879 1.09

44 Thailand 273701 4564388 4838089 21962889 22.03

45 Turkey 0 4107579 4107579 18001804 22.82

46 UAE 0 12988 12988 12988 100.00

47 UK 11576198 37159175 48735373 257809332 18.90

48 USA 4469272 99420057 103889329 1689694706 6.15

Totals 79294460 361443807 440738267 5745083047 7.67

Coal: companies involved in coal extraction

Oil & Gas: companies involved in oil and gas extraction and companies involved in oil and gas services (drilling, pipelines, refining, distribution & retail)

APPENDIX 3: Value of SuperFund Fossil Fuel Investments in Selected Countries

Aus

tral

ia

Bra

zil

Can

ada

Chi

na

Fran

ce

Ger

man

y

Indi

a

Italy

Japa

n

New

Zea

land

Nor

way

Rus

sia

Sou

th A

fric

a

Sou

th K

orea

Spa

in

Thai

land

Turk

ey UK

US

A

Oil & Gas

Coal

Mill

ions

NZ$

APPENDIX 4: Proportions of SuperFund Fossil Fuel Investments in Selected Countries80

60

40

20

0

Aus

tral

ia

Bra

zil

Can

ada

Chi

na

Chi

na

Col

ombi

a

Fran

ce

Hun

gary

Indi

a

Indo

nesi

a

Italy

New

Zea

land

Nor

way

Pol

and

Rus

sia

Sou

th A

fric

a

Spa

in

Thai

land

Turk

ey UK

US

A

Investment value

No. of companies

Perc

enta

ge %



APPENDIX 6: New Zealand SuperFund Investments in the Top 100 Coal Companies56 Rank Coal Companies Coal Gt CO2 Value of investment $NZ

1 Severstal JSC 141.6 378065

2 Anglo American PLC 16.75 2313434

3 BHP Billiton 16.07 7819950

4 Shanxi Coking Co. Ltd 14.98 0

5 Exxaro Resources Ltd 13.37 539317

6 Xstrata PLC 11.60 1346567

7 Datang International Power Gen Co. Ltd 11.21 228420

8 Peabody Energy Corp 10.23 231759

9 Mechel OAO 8.90 173656

10 Inner Mongolia Yitai Coal Co. Ltd 7.78 624412

11 China Shenhua Energy Co. Ltd 6.91 2596250

12 Coal India Ltd 6.69 582125

13 Arch Coal Inc 5.57 37663

14 Rio Tinto 5.23 6030642

15 Evraz Group S.A 4.86 40200

16 Public Power Corp S.A 4.56 32747

17 Consol Energy Inc 4.50 259603

18 Yanzhou Coal mining Co. Ltd 4.46 1848526

19 Mitsubishi Corp 4.31 1799292

20 Datong Coal Industry Co. Ltd 4.30 0

21 Bumi Resources 3.28 331127

22 United Co. Rusal PLC 3.02 0

23 Vale S.A 3.01 19818855

24 Pingdingshan Tianan Coal Mining Co. Ltd 2.97 0

25 Tata Steel Ltd 2.96 661326

26 Teck Resources Ltd 2.70 1513600

27 Banpu PCL 2.55 273701

28 Sasol Ltd 2.51 4619818

29 United Industrial Corp Ltd 2.48 0

30 Polyus Gold OAO 2.47 0

31 Alpha Natural Resources Inc 2.29 125417

32 Magnitogorsk Iron & Steel Works 2.20 0

33 Raspadaskaya OJSC 2.09 0

34 Kuzbassenergo 2.03 0

35 RWE AG 1.94 3829947

36 Massey Energy Co57 1.93 0

37 Eurasian Natural Resources Corp PLC58 1.93 0

38 Westfarmers Ltd 1.86 1771693

39 Churchill Mining PLC 1.74 0

40 Idemitsu Kosan Co. Ltd 1.58 77279

41 Tata Power Co. Ltd 1.49 338195

42 Alliance Resource Partners L.P 1.47 0

43 NACCO Industries Inc (CIA) 1.33 461384

44 Novolipetsk Steel OJSC 1.30 194673

45 New Hope Corp Ltd 1.30 0

46 TransAlta Corp 1.23 520009

47 Sherritt International Corp 1.15 1370641

48 PT Bayan Resources 1.14 0

49 New World Resources N.V 1.07 90875

50 Mitsui & Co. Ltd 1.03 1361983

51 Kazakhmys PLC 0.99 0

52 African Rainbow Minerals Ltd 0.95 397362

APPENDIX 5: Number of Publicly Listed Companies in which NZ SuperFund Directly Invests, by Country

Country Coal Oil&Gas Services Fossil Total Country Total Fossil %

1 Australia 11 14 6 31 238 13.03

2 Austria 0 1 1 2 29 6.90

3 Belgium 0 0 1 1 42 2.38

4 Brazil 2 3 2 7 79 8.86

5 Canada 8 53 23 84 330 25.45

6 Chile 0 1 0 1 21 4.76

7 China 6 6 3 15 158 9.49

8 Colombia 0 1 0 1 11 9.09

9 Cyprus 0 0 0 0 1 0.00

10 Czech Rep 0 0 0 0 3 0.00

11 Denmark 0 0 0 0 35 0.00

12 Egypt 0 0 0 0 9 0.00

13 Finland 0 1 0 1 40 2.50

14 France 1 3 2 6 154 3.90

15 Germany 1 0 0 1 140 0.71

16 Greece 1 1 1 3 23 13.04

17 Hong Kong 2 1 0 3 105 2.86

18 Hungary 0 1 0 1 5 20.00

19 India 6 5 0 11 84 13.10

20 Indonesia 4 0 1 5 29 17.24

21 Ireland 0 0 0 0 20 0.00

22 Israel 0 1 2 3 45 6.67

23 Italy 0 1 3 4 90 4.44

24 Japan 6 14 10 30 994 3.02

25 Malaysia 0 3 0 3 48 6.25

26 Mexico 1 0 0 1 23 4.35

27 Morocco 0 0 0 0 3 0.00

28 Netherlands 0 0 1 1 55 1.82

29 N.Zealand 0 1 2 3 49 6.12

30 Norway 0 1 6 7 54 12.96

31 Peru 0 0 0 0 5 0.00

32 Philippines 0 0 0 0 19 0.00

33 Poland 1 1 1 3 20 15.00

34 Portugal 0 0 0 0 15 0.00

35 Puerto Rico 0 0 0 0 1 0.00

36 Russia 3 9 1 13 26 50.00

37 Singapore 2 0 2 4 91 4.40

38 S.Africa 3 0 0 3 55 5.45

39 S.Korea 0 3 2 5 115 4.35

40 Spain 0 1 2 3 56 5.36

41 Sweden 0 3 0 3 96 3.13

42 Switzerland 0 0 1 1 102 0.98

43 Taiwan 0 0 2 2 130 1.54

44 Thailand 1 4 0 5 20 25.00

45 Turkey 0 1 1 2 27 7.41

46 UAE 0 0 1 1 1 100.00

47 UK 10 25 3 38 369 10.30

48 USA 16 80 50 146 2370 6.16

Totals 85 239 130 454 6435 7.06

Coal: companies involved in coal extraction

Oil & Gas: companies involved in oil and gas extraction

Services: companies involved in oil and gas services (drilling, pipelines, refining, distribution & retail)

56 List of companies taken from: Carbon Tracker Initiative. (2011). Unburnable Carbon: Are the world’s financial markets carrying a carbon bubble? London, Carbon Tracker Initiative. http://www.carbontracker.org/wp-content/uploads/downloads/2012/08/Unburnable-Carbon-Full1.pdf

57 Massey is now owned by Alpha Natural Resources

58 Eurasian Natural Resource Corp is now owned by Alpha Natural Resources



Rank Coal Companies Coal Gt CO2 Value of investment $NZ

53 International Coal Group Inc 0.95 0

54 Patriot Coal Corp 0.94 6223

55 Aston Resources Pty Ltd59 0.93 0

56 AGL Energy 0.89 714777

57 Tokyo Electric Power Co. Inc 0.89 199447

58 Cloud Peak energy Inc 0.85 237458

59 CLP Holdings Ltd 0.83 1533282

60 Polo Resources Ltd 0.82 0

61 Whitehaven Coal Ltd 0.79 59346

62 Mongolian Mining Corp 0.75 0

63 PT Adaro Energy 0.74 400476

64 Allete Inc 0.72 72756

65 Optimum Coal Holdings Ltd60 0.67 418645

66 ArcelorMittal 0.62 572426

67 Coal of Africa Ltd 0.59 0

68 James River Coal Co 0.57 5668

69 Westmoreland Coal Co 0.56 0

70 Aquila Resources Ltd 0.53 38087

71 Macarthur Coal Pty Ltd61 0.53 0

72 FirstEnergy Corp 0.50 1982155

73 Western Coal Corp 0.49 0

74 Cliffs Natural Resources Inc 0.47 226213

75 Wescoal Holdings Ltd 0.46 0

76 Walter Energy Inc 0.45 82414

77 Huolinhe Opencut Coal Industry Corp. Ltd 0.41 0

78 Gujarat NRE Coke Ltd 0.40 0

79 Straits Asia Resources Ltd62 0.39 44240

80 Capital Power Corp 0.38 118990

81 Fushan International Energy Group Ltd63 0.34 139737

82 Noble Group Ltd 0.34 102499

83 Itochu Corp 0.34 2454568

84 Jizhong Energy Resources Co. Ltd 0.30 0

85 Northern Energy Corp Ltd 0.29 0

86 NTPC Ltd 0.28 249816

87 Prophecy Resource Corp 0.28 0

88 Mitsui Matsushima Co. Ltd 0.28 32184

89 Fortune Minerals Ltd 0.28 0

90 Black Hills Corp 0.27 68042

91 Jindal Steel & Power Ltd 0.26 580818

92 Grupo Mexico S.A.B de C.V 0.26 2316169

93 Gansu Jingyuan Coal Industry & Electricity 0.26 0

94 Bandanna Energy Ltd 0.25 0

95 Irkutskenergo 0.23 0

96 Alcoa Inc 0.23 284900

97 Homeland energy Group Ltd 0.23 0

98 Neyveli Lignite Corp Ltd 0.19 0

99 Zhengzhou Coal Industry & Electric Power 0.15 0

100 Gujarat NRE Coking coal Ltd 0.12 0

Totals 66 out of 100 companies 389.17 NZ$77,581,849

APPENDIX 7: New Zealand SuperFund Investments in the Top 100 Oil & Gas Companies64

Rank Oil & Gas companies Oil Gt CO2 Gas Gt CO2 Value of investment $NZ

1 Lukoil Holdings 42.59 0.97 11479765

2 Exxon Mobil Corp 38.14 2.89 24509888

3 BP PLC 32.68 1.92 9426035

4 Gazprom OAO 14.87 13.96 13660399

5 Chevron Corp 20.11 1.11 15997306

6 ConocoPhillips 18.11 1.03 7274813

7 Total S.A 16.9 1.12 11780832

8 Royal Dutch Shell PLC 14.11 2.09 16329664

9 Petrobras 11.45 0.17 19178827

10 Rosneft 10.7 0.08 2078668

11 ENI S.p.A 7.51 0.53 6564723

12 Occidental Petroleum Corp 7.36 0.22 3126305

13 Bashneft65 7.25 0.01 330582

14 SINOPEC Shandong Taishan Petroleum Co. Ltd66 6.61 0.22 8568536

15 Canadian Natural Resources Ltd 4.35 0.14 969525

16 Devon Energy Corp 3.77 0.42 735923

17 Suncor Energy Inc 3.74 0.07 2076724

18 Apache Corp 3.32 0.33 1111651

19 Anadarko Petroleum Corp 3.14 0.33 1087368

20 Hess Corp 3.01 0.12 637751

21 Repsol YPF S.A 2.75 0.29 2267549

22 BG Group PLC 2.29 0.48 3885272

23 Marathon Oil Corp67 2.51 0.12 5517048

24 Inpex Corp 2.44 0.10 810939

25 Statoil ASA 2.23 0.25 2512162

26 BHP Billiton 1.82 0.20 7819950

27 CNOOC Ltd 1.85 0.09 7274441

28 Husky Energy Inc 1.76 0.06 254191

29 YPF S.A 1.68 0.12 0

30 Novatek 1.73 1946312

31 Talisman Energy Inc 1.47 0.19 402370

32 Pioneer Natural Resources Co 1.5 0.11 329207

33 SK Holdings Co. Ltd 1.56 1778565

34 Petroleum Development Corp 1.51 27468

35 Cenovus Energy Inc 1.4 0.06 789863

36 Nexen Inc 1.4 0.02 787573

37 EOG Resources Inc 0.97 0.38 789717

38 Noble Energy Inc 1.04 0.12 749334

39 OMV AG 1.02 0.06 2129660

40 Chesapeake Energy Corp 0.39 0.57 421176

41 Penn West Petroleum Ltd 0.91 0.03 307314

42 Oil Search Ltd 0.91 0

43 Woodside Petroleum Ltd 0.54 0.27 989694

44 Canadian Oil Sands Ltd 0.78 766566

45 Imperial Oil Ltd 0.75 0.01 550580

46 Murphy Oil Corp 0.69 0.03 951430

47 Whiting Petroleum Corp 0.7 0.01 148365

48 EnCana Corp 0.24 0.47 1214376

49 Plains Exploration & Production Co 0.67 0.04 231980

50 Newfield Exploration Co 0.53 0.11 109400

51 Denbury Resources Inc 0.60 0 197263

52 Continental Resources Inc Oklahoma 0.54 0.02 91134

59 Aston is now owned by Whitehaven Coal Ltd

60 Optimum is now owned by Glencore International in which SF has $418,645

61 Macarthur is now owned by Peabody Energy

62 Straits Asia Resources has changed its name to Sakari Resources

63 Fushan is now called Shougang Fushan Resources Group


65 Bashneft is majority owned by Sistema JSFC in which SuperFund has a $330,582 investment

66 SF has over $8 million invested in SINOPEC’s parent company China PetroChemical Corp

67 Now two companies: Marathon Oil Corp and Marathon Petroleum Corp




53 Linn Energy LLC 0.49 0.03 0

54 Pacific Rubiales Energy Corp 0.50 0.02 198955

55 Crescent Point Energy Corp 0.47 0 476671

56 Concho Resources Inc 0.44 0.02 338772

57 Quicksilver Resources Inc 0.36 0.08 47878

58 PTT PCL 0.33 0.12 1790557

59 Berry Petroleum Co (Cl A) 0.40 0.03 138162

60 Range Resources Corp 0.27 0.11 323250

61 Energen Corp 0.34 0.04 114126

62 Enerplus Corp 0.34 0.03 62209

63 Tullow Oil PLC 0.36 0.01 1235928

64 Ecopetrol S.A 0.35 0.01 2886523

65 Santos Ltd 0.19 0.17 483843

66 SandRidge Energy Inc 0.33 0.03 165282

67 Cairn Energy PLC 0.35 0 155079

68 Arc Resources Ltd 0.30 0.03 192335

69 El Paso Corp68 0.23 0.1 459088

70 Pengrowth Energy Corp 0.30 0.02 93031

71 Lundin Petroleum AB 0.31 0 317893

72 Petrobank Energy & Resources Ltd 0.31 0 71241

73 Baytex Energy Corp 0.30 0 214411

74 Forest Oil Corp 0.22 0.07 101091

75 Mariner Energy69 0.27 0.02 0

76 ATP Oil & Gas Corp 0.24 0.01 12078

77 Bankers Petroleum Ltd 0.25 26635

78 Soco International PLC 0.25 125781

79 Zhaikmunai L.P 0.22 0.01 0

80 Cimarex Energy Co 0.18 0.05 164588

81 Questar Corp 0.12 0.11 293273

82 GDF Suez S.A 0.17 0.05 4191618

83 Swift Energy Co 0.20 0.01 48597

84 Compania Espanola de Petroleos S.A 0.21 0

85 PetroBakken Energy Ltd 0.21 0 113622

86 Premier Oil PLC 0.18 0.03 216955

87 Bonavista Energy Corp 0.18 0.03 62135

88 MOL Hungarian Oil and Gas PLC 0.19 0.01 557567

89 SM Energy Co 0.17 0.02 226074

90 Williams Cos 0.18 553941

91 EQT Corp 0.01 0.17 320159

92 Oil & Natural Gas Corp Ltd 0.18 2261906

93 Global Energy Development PLC 0.17 0 0

94 Oil India Ltd 0.16 0.01 0

95 Venoco Inc 0.16 0.01 23639

96 INA-Industrija Nafte 0.17 0

97 PA Resources AB 0.16 6191

98 Ultra Petroleum Corp 0.16 97247

99 Resolute Energy Corp 0.16 0 26167

100 Southwestern Energy Co 0 0.16 341539

Totals 92 out of 100 companies 319.18 37.32 NZ$222,512,221

APPENDIX 8: ACC Investments in the Top 100 Coal Companies as of June 201270 Rank Coal Companies Coal Gt CO2 Value of investment $NZ

1 Severstal JSC 141.60 0

2 Anglo American PLC 16.75 3929495.98

3 BHP Billiton 16.07 64911667.81

4 Shanxi Coking Co. Ltd 14.98 0

5 Exxaro Resources Ltd 13.37 0

6 Xstrata PLC 11.60 0

7 Datang International Power Gen Co. Ltd 11.21 0

8 Peabody Energy Corp 10.23 896539.97

9 Mechel OAO 8.90 0

10 Inner Mongolia Yitai Coal Co. Ltd 7.78 0

11 China Shenhua Energy Co. Ltd 6.91 0

12 Coal India Ltd 6.69 0

13 Arch Coal Inc 5.57 0

14 Rio Tinto 5.23 27026324.44

15 Evraz Group S.A 4.86 0

16 Public Power Corp S.A 4.56 0

17 Consol Energy Inc 4.50 0

18 Yanzhou Coal mining Co. Ltd 4.46 0

19 Mitsubishi Corp 4.31 4733408.23

20 Datong Coal Industry Co. Ltd 4.30 0

21 Bumi Resources 3.28 0

22 United Co. Rusal PLC 3.02 0

23 Vale S.A 3.01 0

24 Pingdingshan Tianan Coal Mining Co. Ltd 2.97 0

25 Tata Steel Ltd 2.96 0

26 Teck Resources Ltd 2.70 0

27 Banpu PCL 2.55 0

28 Sasol Ltd 2.51 0

29 United Industrial Corp Ltd 2.48 0

30 Polyus Gold OAO 2.47 0

31 Alpha Natural Resources Inc 2.29 0

32 Magnitogorsk Iron & Steel Works 2.20 0

33 Raspadaskaya OJSC 2.09 0

34 Kuzbassenergo 2.03 0

35 RWE AG 1.94 12584488.9

36 Massey Energy Co71 1.93 0

37 Eurasian Natural Resources Corp PLC72 1.93 0

38 Westfarmers Ltd 1.86 25281331.88

39 Churchill Mining PLC 1.74 0

40 Idemitsu Kosan Co. Ltd 1.58 0

41 Tata Power Co. Ltd 1.49 0

42 Alliance Resource Partners L.P 1.47 0

43 NACCO Industries Inc (CIA) 1.33 0

44 Novolipetsk Steel OJSC 1.30 0

45 New Hope Corp Ltd 1.30 0

46 TransAlta Corp 1.23 0

47 Sherritt International Corp 1.15 0

48 PT Bayan Resources 1.14 0

49 New World Resources N.V 1.07 0

50 Mitsui & Co. Ltd 1.03 5823208.33

51 Kazakhmys PLC 0.99 0

52 African Rainbow Minerals Ltd 0.95 0

53 International Coal Group Inc 0.95 0

54 Patriot Coal Corp 0.94 0

68 El Paso Corp is now owned by Kinder Morgan in which SF has $459,088 invested

69 Mariner Energy is now owned by Apache Corp


71 Massey is now owned by Alpha Natural Resources

72 Eurasian Natural Resource Corp is now owned by Alpha Natural Resources




55 Aston Resources Pty Ltd71 0.93

56 AGL Energy 0.89 16394633.08


58 Cloud Peak Energy Inc 0.85 0

59 CLP Holdings Ltd 0.83 3419587.37


61 Whitehaven Coal Ltd 0.79 686385.3



64 Allete Inc 0.72 0

65 Optimum Coal Holdings Ltd72 0.67 487109.48

66 ArcelorMittal 0.62 3574384.56






72 FirstEnergy Corp 0.50 4753354.9











83 Itochu Corp 0.34 5089465.75



86 NTPC Ltd 0.28 0








94 Bandanna Energy Ltd 0.25 1768762.11


96 Alcoa Inc 0.23 0





Totals 17 out of 100 companies 389.17 NZ$181,360,148.1

APPENDIX 9: ACC Investments in the Top 100 Oil & Gas Companies as of June 201278 Rank Oil & Gas companies Oil Gt CO2 Gas Gt CO2 Value of investment $NZ

1 Lukoil Holdings 42.59 0.97 0

2 Exxon Mobil Corp 38.14 2.89 29066949.69

3 BP PLC 32.68 1.92 20566678.82

4 Gazprom OAO 14.87 13.96 99320.06

5 Chevron Corp 20.11 1.11 18918681.18

6 ConocoPhillips 18.11 1.03 0

7 Total S.A 16.9 1.12 6143526

8 Royal Dutch Shell PLC 14.11 2.09 16441943.38

9 Petrobras 11.45 0.17 226403.73

10 Rosneft 10.7 0.08 0

11 ENI S.p.A 7.51 0.53 7025425.37

12 Occidental Petroleum Corp 7.36 0.22 33272532.6

13 Bashneft 7.25 0.01 0

14 SINOPEC Shandong Taishan Petroleum Co. Ltd 6.61 0.22 0

15 Canadian Natural Resources Ltd 4.35 0.14 0

16 Devon Energy Corp 3.77 0.42 60821.86

17 Suncor Energy Inc 3.74 0.07 1426797.95

18 Apache Corp 3.32 0.33 2613463.14

19 Anadarko Petroleum Corp 3.14 0.33 1762854.12

20 Hess Corp 3.01 0.12 1945679.63

21 Repsol YPF S.A 2.75 0.29 0

22 BG Group PLC 2.29 0.48 16879979.77

23 Marathon Oil Corp79 2.51 0.12 6925093

24 Inpex Corp 2.44 0.10 4054695.02

25 Statoil ASA 2.23 0.25 5979026.48

26 BHP Billiton 1.82 0.20 64911667.81

27 CNOOC Ltd 1.85 0.09 0

28 Husky Energy Inc 1.76 0.06 0

29 YPF S.A 1.68 0.12 0

30 Novatek 1.73 0

31 Talisman Energy Inc 1.47 0.19 0

32 Pioneer Natural Resources Co 1.5 0.11 0

33 SK Holdings Co. Ltd 1.56 0

34 Petroleum Development Corp 1.51 0

35 Cenovus Energy Inc 1.4 0.06 2618394.89

36 Nexen Inc 1.4 0.02 0

37 EOG Resources Inc 0.97 0.38 0

38 Noble Energy Inc 1.04 0.12 0

39 OMV AG 1.02 0.06 0

40 Chesapeake Energy Corp 0.39 0.57 0

41 Penn West Petroleum Ltd 0.91 0.03 0

42 Oil Search Ltd 0.91 1281129.48

43 Woodside Petroleum Ltd 0.54 0.27 0

44 Canadian Oil Sands Ltd 0.78 0

45 Imperial Oil Ltd 0.75 0.01 3350903.81

46 Murphy Oil Corp 0.69 0.03 0

47 Whiting Petroleum Corp 0.7 0.01 0

48 EnCana Corp 0.24 0.47 0

49 Plains Exploration & Production Co 0.67 0.04 0

50 Newfield Exploration Co 0.53 0.11 0

51 Denbury Resources Inc 0.6 0 0

52 Continental Resources Inc Oklahoma 0.54 0.02 0

53 Linn Energy LLC 0.49 0.03 0

54 Pacific Rubiales Energy Corp 0.5 0.02 0


55 Aston Resources Pty Ltd73 0.93

56 AGL Energy 0.89 16394633.08


58 Cloud Peak Energy Inc 0.85 0

59 CLP Holdings Ltd 0.83 3419587.37


61 Whitehaven Coal Ltd 0.79 686385.3



64 Allete Inc 0.72 0

65 Optimum Coal Holdings Ltd74 0.67 487109.48

66 ArcelorMittal 0.62 3574384.56






72 FirstEnergy Corp 0.50 4753354.9











83 Itochu Corp 0.34 5089465.75



86 NTPC Ltd 0.28 0








94 Bandanna Energy Ltd 0.25 1768762.11


96 Alcoa Inc 0.23 0





Totals 18 out of 100 companies 389.17 NZ$181,360,148.1

73 Aston is now owned by Whitehaven Coal Ltd in which ACC has $686385.30

74 Optimum is now owned by Glencore International in which ACC has $487,109.48

75 Macarthur is now owned by Peabody Energy

76 Straits Asia Resources has changed its name to Sakari Resources

77 Fushan is now called Shougang Fushan Resources Group


79 Now two companies: Marathon Oil Corp and Marathon Petroleum Corp

Fossil Fuel Finance in New Zealand: Part 2: The Superannuation Fund and Accident Compensation Corporation

APPENDICIES


55 Crescent Point Energy Corp 0.47 0 1217130.6

56 Concho Resources Inc 0.44 0.02 0

57 Quicksilver Resources Inc 0.36 0.08 0

58 PTT PCL 0.33 0.12 0

59 Berry Petroleum Co (Cl A) 0.4 0.03 0

60 Range Resources Corp 0.27 0.11 0

61 Energen Corp 0.34 0.04 0

62 Enerplus Corp 0.34 0.03 0

63 Tullow Oil PLC 0.36 0.01 6430410.58

64 Ecopetrol S.A 0.35 0.01 0

65 Santos Ltd 0.19 0.17 20753740.17

66 SandRidge Energy Inc 0.33 0.03 0

67 Cairn Energy PLC 0.35 0 0

68 Arc Resources Ltd 0.3 0.03 0

69 El Paso Corp 0.23 0.1 0

70 Pengrowth Energy Corp 0.3 0.02 0

71 Lundin Petroleum AB 0.31 0 0

72 Petrobank Energy & Resources Ltd 0.31 0 0

73 Baytex Energy Corp 0.3 0 1145270.42

74 Forest Oil Corp 0.22 0.07 0

75 Mariner Energy80 0.27 0.02 0

76 ATP Oil & Gas Corp 0.24 0.01 0

77 Bankers Petroleum Ltd 0.25 0

78 Soco International PLC 0.25 0

79 Zhaikmunai L.P 0.22 0.01 0

80 Cimarex Energy Co 0.18 0.05 0

81 Questar Corp 0.12 0.11 0

82 GDF Suez S.A 0.17 0.05 0

83 Swift Energy Co 0.2 0.01 0

84 Compania Espanola de Petroleos S.A 0.21 0

85 PetroBakken Energy Ltd 0.21 0 0

86 Premier Oil PLC 0.18 0.03 0

87 Bonavista Energy Corp 0.18 0.03 0

88 MOL Hungarian Oil and Gas PLC 0.19 0.01 0

89 SM Energy Co 0.17 0.02 0

90 Williams Cos 0.18 3964399.38

91 EQT Corp 0.01 0.17 0

92 Oil & Natural Gas Corp Ltd 0.18 0

93 Global Energy Development PLC 0.17 0 0

94 Oil India Ltd 0.16 0.01 0

95 Venoco Inc 0.16 0.01 0

96 INA-Industrija Nafte 0.17 0

97 PA Resources AB 0.16 0

98 Ultra Petroleum Corp 0.16 0

99 Resolute Energy Corp 0.16 0 0

100 Southwestern Energy Co 0 0.16 0

Totals 27 out of 100 companies 319.18 37.32 NZ$279,082,918.90

80 Mariner Energy is now owned by Apache Corp

© S

hutterstock

FOSSIL FUEL FINANCE IN NEW ZEALAND PART 2: THE SUPERANNUATION FUND AND ACCWWF.ORG.NZ

If there is no URL

With URL - Regular

OR

Why we are hereTo stop the degradation of the planet’s natural environment andto build a future in which humans live in harmony and nature.

Why we are here

wwf.org.nz

To stop the degradation of the planet’s natural environment andto build a future in which people live in harmony with nature.

Why we are here

wwf.org.nz

To stop the degradation of the planet’s natural environment and to build a future in which people live in harmony with nature.

>$1 BILLIONFossil fuel investments of SuperFund and ACC.

US$674 BILLIONInvestment in seeking out new reserves by the top 200 oil, gas and coal mining companies in 2012.

10US cities have announced their intention to divest from fossil fuels.

92%Proportion of the top 100 oil and gas companies in which the SuperFund has investments.

77%The proportion of existing fossil fuel reserves that must remain unburned to give a reasonable chance of staying below 2 degrees warming.

2.8Trillion tonnes of CO2 will be released if existing fossil fuel reserves are dug up and burned.

$40 BILLIONCombined assets of SuperFund and ACC.

156Companies currently excluded from SuperFund direct equity investments.

Fossil Fuel Finance in New...

Documents

Transcript of Fossil Fuel Finance in New...