Hunter looks for game outside old oil
Investment fund Hunter Hall is ending its relationships with fossil fuel companies.
The group said it would screen out and end all investment in fossil fuels, focusing instead on more progressive avenues.
It matches recent moves by AMP Capital, which recently announced its ‘‘responsible’’ funds would pull out of involvement with certain mining and energy companies, as well as a number of church funds and banks in northern Europe.
Hunter Hall already refuses to be involved with tobacco, gambling, armaments, uranium, nuclear energy, old growth forestry and intensive husbandry.
In considers ending it relationship with fossil fuels as a “natural addition” to its list of exclusions.
Chief executive officer David Deverall has told reporters that the group will maintain a materiality limit of just 10 per cent on the production of fossil fuels, and will continue assessing companies on an individual case basis.
The exclusion is aimed at companies with global industry classification standard (GICS) 101020 for “Oil, Gas and Consumable Fuels”.
The fossil fuels sector accounts for 8 per cent of the MSCI World Index, and takes up 2.2 per cent of Hunter Hall's portfolio.
Australian-based companies including Woodside Petroleum, Santos and Caltex will be excluded, as will global companies such as Peabody, Chevron, BP, Exxon Mobil.
Founder and chief investment officer Peter Hall said Hunter has never had a huge involvement in the sector.
“But the decision to end fossil fuel investments outright enables Hunter Hall to focus on a future with new opportunities,” he said this week.
The policy should be in place by 30 June.
The Australian Institute’s new report ‘Climate proofing your finances: Making your money fossil free', says millions “accidentally” invest in fossil fuels, simply by holding bank accounts with one of the big four.
AI’s figures show Westpac, ANZ, and National Australia Bank have loaned a combined $19 billion to domestic coal and gas projects since 2008.