Super's effect on the Climate , and why it matters for returns

So as you have no doubt heard, the world's leaders got together at COP26 in Glasgow to figure out how they can combat climate change.  

After reading an interesting article from the age’s Henrietta Cook regarding what we can all do to play our part, I was pleased to see that superannuation and banking made the list. Albeit at No.4… 

Now what a lot of people don't understand is the enormous effect that your superannuation has on the climate. 

MMMM recently worked out that your superannuation/pension investments are 21x more impactful than switching to clean energy, going vegetarian, and stopping flying added together. Seriously! So quickly figuring out whether your super investments are aligned with your environmental and social investment principles is the easiest way to have a major impact over the course of your life. Supa is a tool to make that easy!  

Now going vegetarian or living off grid is a real commitment, and I take my hat off if you have done this for the climate! However if you have not checked your super out it's probably time to get the laptop out and log into your supa portal to see how your fund stacks up! 

Maybe you are sitting there thinking “I don't care!” Maybe your objective is to make as much money as possible and leave these problems to the rest of the world. Well, how about you think about it from another angle?

Take a look at how some of the most forward thinking tech businesses are starting to tip the scales. Becoming some of the largest and most powerful organisations in the world. This is a huge change from 15 years ago and only heading in one direction. So if you are currently 30yrs old, you are looking at another 30yrs until retirement. 

What type of investment strategies do you think will work out best? 

Oil & mining? Or carbon capture and renewable energy? It will likely be some form of tech we have never even contemplated!

I will leave that to you, but it's pretty clear to see the shift in power, and money, to the exact industries that are tackling these problems. In 25 years it will be these businesses that will likely pad out your super. So regardless of your motivations, the transition to sustainability adds up on all fronts!