Mark McVeigh, a 24-year-old environmental scientist from Australia, won’t be able to access his retirement savings until 2055. But, concerned about what the world may look like then, he’s taking action now, suing his $39 billion pension fund for not adequately disclosing or assessing the impact of climate change on its investments.
The Federal Court battle is shaping up to be a unique test case. Are pension funds in breach of their fiduciary duties by failing to mitigate the financial ravages of a warmer planet?
The fund says that climate change is one of the variety of factors it has to consider when investing on behalf of its 2 million members. Australia's pension pool, which stands at about $2.9 trillion, is watching the case closely to see if the outcome will make it more difficult for funds to meet their already legislated minimum return targets.