Sustainable Investor: Risk, Return and Responsibility

Australia’s ‘Super’-charged Renewables Transition

Listen Later

In this ‘interview-only’ episode, we explore the role of Australia’s superannuation funds in the country’s embrace of clean energy, with Jeremy Cooper and David Bell of the Conexus Institute.

Risk, Return and Responsibility – the monthly podcast from Sustainable Investor – aims to provide institutional asset owners with news and views shaping both the sustainable investment landscape and our wider economic, environmental and social systems. 

In this episode, Guy Opperman, the UK’s longest-serving Pensions Minister & Chair of Sustainable Investor’s editorial board, reports from Sydney, on the barriers facing Australia’s US$2.8 trillion superannuation sector in supporting the country’s net zero transition. 

In discussion with David Bell and Jeremy Cooper of the Conexus Institute, Guy finds out whether regulation and policy are giving supers the right incentives to invest sustainably, why so much capital is flowing into overseas infrastructure, and how Australia’s path to net zero could be different from other developed economies. 

Guests: David Bell, Executive Director, Conexus Institute, a research organisation focused on improving Australia’s superannuation and retirement systems, and a former CIO of Mine Super. Jeremy Cooper, Chair of the Advisory Board, Conexus Institute, former deputy chair of the Australian Securities and Investments Commission (ASIC), Australia’s financial regulator and author of the government’s review of the super system.

Interview highlights:

  • What are Australian pension funds and their regulators getting right – and wrong – about sustainable investing? Regulators have issued strong guidance on managing climate risk, and mandatory disclosures start next year. Yet, with no legal mandate or firm targets, super funds face little official pressure to decarbonise portfolios despite high public expectations.

  • Why are funds not investing locally to reduce emissions? Despite vast renewable potential, most Australian super funds still prefer overseas infrastructure, particularly in the UK. A limited pipeline of investable domestic projects and benchmark-driven performance tests deter local climate investment, sending capital offshore while Australia needs it most.

  • Can Australia reach net zero on renewables alone – and become a clean energy exporter? According to Jeremy Cooper, abundant solar, strong wind and the world’s largest batteries mean Australia could meet its energy needs without nuclear. Major solar and hydrogen projects in the Northern Territory point to a future where Australia powers both itself and its neighbours with renewables.

  • Will government policy help decarbonise – including through a transition taxonomy? The government’s proposed transition taxonomy and investment incentives aim to crowd in private capital, but progress is slow. Super funds still lack transition plans and consistent carbon pricing, and clear policy signals are needed to unlock large-scale green investment.

  • What can other countries learn from Australia’s pension system? David Bell notes that Australia’s experience shows how performance tests and value-for-money rules can unintentionally discourage climate-aligned investment. The lesson for others: build forward-looking frameworks that reward long-term sustainability, not just short-term returns.

    • Thanks for joining us: If you like what you hear, you can also subscribe to Sustainable Investor, subscribe to this podcast, where you can also find our contact details. We’d love to hear your ideas as we plan future episodes. 

     

    For more info or to sponsor contact [email protected]


    ...more
    View all episodesView all episodes
    Download on the App Store
    Sustainable Investor: Risk, Return and ResponsibilityBy Sustainable Investor