FOR IMMEDIATE RELEASE: Dangerous Climate Fund Paradox: Disaster Ready Fund Investing Millions in Fossil Fuels and Weapons
Act on Climate - Friends of the Earth Melbourne
As published today by online outlet Cheek Media, Friends of the Earth’s Act on Climate Collective has revealed that Australia’s Disaster Ready Fund (DRF), a government initiative designed to build community resilience against climate-driven disasters, is currently investing nearly 100 million dollars in the very industries fuelling the crisis.
The DRF, which provides up to $1 billion over five years to reduce disaster risk was established to prepare communities for the impacts of climate change. However, new research by Act on Climate shows that the fund’s portfolio includes significant allocations to sectors directly responsible for environmental destruction.
According to Act on Climate’s investigation, the DRF is currently holding investments totaling over $103 million in environmentally destructive sectors, including:
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$58 million in mining companies, including BHP and Rio Tinto
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$33 million in fossil fuels, including major polluters such as Woodside, Santos, and Chevron and $1.6 million in APA Group
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$10 million in weapons manufacturing, including Palantir, Lockheed Martin and Elbit systems
Across the entire Sovereign Wealth Fund over $700 million is invested in Woodside, $300 million in Santos, $3.8 billion in BHP, $5.2 billion in ANZ which itself includes investments in fossil fuel projects, and $8 billion to BlackRock which invests in fossil fuels and weapons.
"This is a dangerous contradiction,” said August Wylynko, Friends of the Earth’s Act on Climate campaigner. "The government is mobilising to help communities brace for floods, fires, and storms caused by the climate crisis, while simultaneously streaming funds into the coal, gas, and oil giants driving that crisis.”
“The government is gaslighting us into believing that they are taking meaningful action towards reducing emissions, and preparing us for the disasters we are already witnessing, while discretely investing in the very companies that are causing the climate crisis.”
The findings highlight a disconnect between the fund's stated Responsible Investment Policy priorities and its actual investment practices. The current Policy explicitly states that climate change, nature, and biodiversity risks are key responsible investment priorities. Yet, the inclusion of major fossil fuel producers and extractive industries in the portfolio shows these priorities are not being rigorously enforced.
"Fossil fuel companies already take advantage of public subsidies, run away with monster profits and don’t pay enough tax. Now they are also profiting from our public climate adaptation efforts" said Ms Wylynko “polluters should be paying for the destruction of climate change they have profited from. Instead, they are benefiting from further public investment.”
"When a fund claims to prioritise climate risk reduction but holds billions in assets tied to carbon-intensive industries, it undermines public trust and fails in its core mandate. This is hypocritical, out of touch with common sense, our collective values, and financially irresponsible.”
Friends of the Earth argues that true disaster readiness requires addressing the root cause of increasing hazard frequency and severity: greenhouse gas emissions. The fund must divest from fossil fuels and extractive industries, and align its financing with its purported purpose.
"Investing in resilience means cutting off the funding streams that make disasters worse. Every dollar invested in Woodside or Santos is a dollar working against the safety of Australian communities. The Australian Government cannot claim to be addressing the climate crisis without divesting from the companies creating it.”
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About us:
About Friends of the Earth and Act on Climate
Friends of the Earth Melbourne is a community based grassroots organisation that is actively working towards an environmentally and socially just world. We believe that social and environmental justice are inextricably linked.
Act on Climate is a volunteer collective of FoE, composed of community organisers and facilitators from a diversity of communities who are already seeing the impacts of climate change in their lives. We bring together communities to discuss climate impacts and shape just, practical solutions, to then pitch proactive ideas through state government climate policy development processes.
Contact details:
August Wylynko