The Fossil Fuel Expansion Index or FFX 200 is made up of the 200 publicly-listed companies from all over the world with the biggest plans to expand the scale of the fossil fuel industry. Specifically, the list includes:
The top 60 oil and gas producers by expansion plans.
The top 60 coal miners by expansion plans and coal reserves.
The top 30 companies by new gas power plant development plans.
The top 30 companies by new coal power plant development plans.
The top 10 companies by liquefied natural gas (LNG) import and export terminal development plans.
The top 10 companies by oil and gas pipeline development plans.
Together, these companies are planning new coal, oil and gas projects that could add the equivalent of 300 years of Australia’s national annual emissions!
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View the methodology for calculating exposure to the Fossil Fuel Expansion Index here.
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Coal exclusion policy
Cbus applies a ‘stranded asset exclusion’ which considers carbon intensity, and states: “In addition to climate change investments across the portfolio, a number of our quantitative equity strategies implement one or more climate overlays aimed at constraining carbon emissions and/or limiting exposure to potential stranded assets.”
“Where applied, stranded asset exclusions consist of either an exclusion utilising the MSCI Low Carbon Transition Methodology, or exclusion of companies generating 10% or more of revenue from thermal coal mining. Constraints or adjustments for carbon emissions or the MSCI Low Carbon Transition Score may also be applied as relevant to each strategy.”
Cbus applies a ‘stranded asset exclusion’ which considers carbon intensity, and states: “In addition to climate change investments across the portfolio, a number of our quantitative equity strategies implement one or more climate overlays aimed at constraining carbon emissions and/or limiting exposure to potential stranded assets.”
“Where applied, stranded asset exclusions consist of either an exclusion utilising the MSCI Low Carbon Transition Methodology, or exclusion of companies generating 10% or more of revenue from thermal coal mining. Constraints or adjustments for carbon emissions or the MSCI Low Carbon Transition Score may also be applied as relevant to each strategy.”
Cbus’ stranded asset exclusion will have caused some reduction in investments in coal companies.
Oil & gas divestment action
Cbus’s stranded asset exclusion will have caused some reduction in investments in oil and gas companies.
Climate voting record
Cbus discloses all proxy voting activity 7 days after each company meeting. The fund has supported 52% of climate-related resolutions from 2017 to 2020.
The information provided by Market Forces does not constitute financial advice. The information is presented in order to inform people motivated by environmental concerns and take actions based on those concerns. Market Forces is organising data for environmental ends.
The information and actions provided by Market Forces do not account for any individual’s personal objectives, financial situation or needs. It should not be used, relied upon, or treated as a substitute for specific professional advice.
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