Medibank To Dump Holdings In Fossil Fuels Over Climate Change Health Fears

Fairfax - Nicole Hasham

Medibank, one of Australia's biggest health insurers, has announced it will dump its holdings in fossil fuel companies amid concern over the health effects of climate change.
In a statement to the Australian Stock Exchange on Monday morning, Medibank said it would transition to low-carbon investments in its international portfolio within the next year, to reflect the global transition to clean energy.

Medibank chairwoman Elizabeth Alexander. Photo: John Woudstra

"We are also committed to exploring a similar approach with our domestic equity portfolio, and so we will be actively encouraging fund managers to develop a suitable product for us that is socially responsible, cost effective and delivers a sustainable investment return," the statement said.
The announcement by chairwoman Elizabeth Alexander preceded the company's annual general meeting in Melbourne on Monday.

Medibank said it would transition to low-carbon investments in its international portfolio within the next year. Photo: AP

"We understand that the health of the environment has an impact on the health of the community ... Medibank acknowledges the science of climate change and the impacts on human health," the statement said.

"We also recognise our role as a corporate citizen, and the increasing expectations the community has of corporate Australia."
Divestment from fossil fuel companies has emerged as a key front in the fight against climate change, helped by major institutions that have started to divest, including Norway's government pension fund.
Since about 2011, institutions across Australia – which is among the world's highest per person emitters of carbon dioxide – have been under pressure to offload their stakes in mining and non-renewable energy companies.
Campaigns have targeted universities, churches, local councils, superannuation funds and banks.
Environmental finance group Market Forces said the announcement by Medibank, which has 3.8 million members, means all of Australia's major health insurers have now agreed to shift their money from fossil fuels.
"It's extremely positive that Medibank has ended its unhealthy addiction to fossil fuels," campaigner Pablo Brait said.
"The medical profession has long understood that climate change has a devastating effect on people's health, so it stands to reason medical insurers should not be invested in the industries which drive it."

Links

• Medibank to pull back from carbon polluting investments
• Medibank drops fossil-fuel investments worth tens of millions of dollars
• Medibank to cut high-carbon investments
• Medibank reduces exposure to carbon-intensive assets