AustralianSuper’s Climate Contradiction: Net-Zero Pledge Clashes With Expanding Whitehaven Coal Stake

How’s this for a plot twist? AustralianSuper, the country’s biggest super fund, just loaded up on coal shares. The same fund that promised to hit net-zero emissions by 2050. The same one that dumped Whitehaven Coal back in 2020-2021 because, you know, climate change.

Fast forward to 2025. AustralianSuper’s been quietly buying Whitehaven shares like they’re going out of style. They now own 8.47% of the company – over 70.8 million shares. One day alone, they grabbed 3.6 million shares at $5.48 a pop. They’re Whitehaven’s second-biggest shareholder now, trailing only Vanguard. The recent buying spree coincides with major banks fleeing the UN-backed Net-Zero Banking Alliance, citing legal risks and political pressure.

AustralianSuper’s been quietly buying Whitehaven shares like they’re going out of style.

The fund’s excuse? Whitehaven’s shifted to mostly metallurgical coal, the stuff used to make steel. Not thermal coal, which powers electricity plants. See the difference? Neither do climate groups, who point out Whitehaven’s planning to boost thermal coal production by 60% anyway. Those expansion projects at Vickery and Winchester South aren’t exactly screaming “green shift.” This strategy contradicts the global energy transition where energy storage capacity is growing at an unprecedented 76% annually, enabling greater renewable energy integration.

AustralianSuper’s climate policy conveniently doesn’t ban investments in metallurgical coal companies. Unlike some of their peers who’ve adopted formal thermal coal exclusions. Funny how that works.

The fund’s brass keeps talking about “attractive valuation” and “value creation for members.” They insist this $4.3 billion coal company somehow fits their net-zero pathway. Because apparently owning massive chunks of coal producers while pledging to fight climate change makes perfect sense. Analysts rate Whitehaven as a Buy target with a price target of A$9.75, suggesting the fund sees significant upside potential.

ESG leadership at the fund emphasizes they’re focused on returns within their policy boundaries. Those boundaries seem pretty flexible when Whitehaven’s shares are trading around $5.40-$5.57 and looking cheap.

Climate advocacy groups aren’t buying it. Market Forces and others are calling out the obvious contradiction – you can’t claim to support net-zero while bankrolling coal expansion. AustralianSuper counters that being a major shareholder lets them push for emissions reduction. Right.

The fund ditched Whitehaven when it was fashionable to care about climate commitments. Now they’re back, wallet open, talking about engagement and influence. Their 16.2 million members might wonder which version of AustralianSuper they’re invested in – the climate champion or the coal enthusiast.