Today environmental finance campaigners, Market Forces, released a report revealing the multi-million dollar bonuses awarded to Australian and international fossil fuel company executives for expanding reserves which are un burnable under any plausible two degree climate scenario – and the duplicity of Australia’s superannuation – or pension – funds which support the remuneration packages despite their public sustainability commitments.
According to the report – Digging Deeper – seven energy companies in the ASX300 explicitly refer to reserve replacement or exploration targets in their executives’ bonus structures – AWE, FAR Ltd, Karoon Gas Australia, Oil Search, Santos, Senex Energy and Sino Gas & Energy.
The executives in question stand to make a combined AU$2.02 million in additional bonuses each year by meeting their targets to expand fossil fuel reserves.
Similar incentives exist in the remuneration packages of executives in six international companies operating in Australia, BP, Chevron, ConocoPhillips, ExxonMobil, Hess and Murphy Oil. Bob Dudley, CEO of BP PLC, which is currently considering controversial deep sea drilling in the Great Australian Bight, could earn, for example, an exploration bonus of up to US$1.32 million.
In total, between 2013-15, international fossil fuel companies spent over AU$14.6 billion on exploration.
With the Paris agreement being ratified by the world’s biggest economies and aiming to keep the world under two degrees warming, we know that a large proportion of current fossil fuel reserves cannot be consumed.
“With the Paris agreement being ratified by the world’s biggest economies and aiming to keep the world under two degrees warming, we know that a large proportion of current fossil fuel reserves cannot be consumed,” said Market Forces analyst and report author, Daniel Gocher.
“Executive bonuses predicated on unearthing more fossil fuels when the world needs less shows the extent to which these companies’ business model is broken. They are not just in a state of denial, but actively accelerating towards a brick wall.”
Australia’s super funds, which collectively hold approximately 20% of the market capitalisation of all ASX-listed companies, are failing to challenge this business model, despite their stated belief in engagement as a strategy for changing the behaviour of companies.
According to the new report, in the last year there have been just 3 out of a total of 80 disclosed examples of super funds voting against fossil fuel companies’ remuneration packages that incentivise exploration. None of these were explicit protests against reserves-based incentives.
Furthermore, only ten of Australia’s biggest super funds disclose enough information to be able to analyse their voting record, meaning the majority of Australians cannot even find out how votes are being directed on their behalf.
“There can be no more glaring example of the failure of superannuation funds to effectively engage with companies on climate change than their continued blind support for executive remuneration packages which expressly incentivise the expansion of fossil fuel reserves,” said Gocher.
“At a minimum, we expect super funds to use the opportunity of voting against remuneration reports at the upcoming AGMs of AWE, FAR Ltd and Karoon Gas Australia to reject incentives for fossil fuel exploration, and encourage the implementation of sustainability metrics into remuneration packages.”
Road Trip! How to Choose the Greenest Vehicle for Your Growing Family
When you have a growing family, it often feels like you’re in this weird bubble that exists outside of mainstream society. Whereas everyone else seemingly has stability, your family dynamic is continuously in flux. Having said that, is it even possible to buy an eco-friendly vehicle that’s also practical?
What to Look for in a Green, Family-Friendly Vehicle?
As a single person or young couple without kids, it’s pretty easy to buy a green vehicle. Almost every leading car brand has eco-friendly options these days and you can pick from any number of options. The only problem is that most of these models don’t work if you have kids.
Whether it’s a Prius or Smart car, most green vehicles are impractical for large families. You need to look for options that are spacious, reliable, and comfortable – both for passengers and the driver.
5 Good Options
As you do your research and look for different opportunities, it’s good to have an open mind. Here are some of the greenest options for growing families:
1. 2014 Chrysler Town and Country
Vans are not only popular for the room and comfort they offer growing families, but they’re also becoming known for their fuel efficiency. For example, the 2014 Chrysler Town and Country – which was one of CarMax’s most popular minivans of 2017 – has Flex Fuel compatibility and front wheel drive. With standard features like these, you can’t do much better at this price point.
2. 2017 Chrysler Pacifica
If you’re looking for a newer van and are willing to spend a bit more, you can go with Chrysler’s other model, the Pacifica. One of the coolest features of the 2017 model is the hybrid drivetrain. It allows you to go up to 30 miles on electric, before the vehicle automatically switches over to the V6 gasoline engine. For short trips and errands, there’s nothing more eco-friendly in the minivan category.
3. 2018 Volkswagen Atlas
Who says you have to buy a minivan when you have a family? Sure, the sliding doors are nice, but there are plenty of other options that are both green and spacious. The new Volkswagen Atlas is a great choice. It’s one of the most fuel-efficient third-row vehicles on the market. The four-cylinder model gets an estimated 26 mpg highway.
4. 2015 Hyundai Sonata Hybrid
While a minivan or SUV is ideal – and necessary if you have more than two kids – you can get away with a roomy sedan when you still have a small family. And while there are plenty of eco-friendly options in this category, the 2015 Hyundai Sonata Hybrid is arguably the biggest bang for your buck. It gets 38 mpg on the highway and is incredibly affordable.
5. 2017 Land Rover Range Rover Sport Diesel
If money isn’t an object and you’re able to spend any amount to get a good vehicle that’s both comfortable and eco-friendly, the 2017 Land Rover Range Rover Sport Diesel is your car. Not only does it get 28 mpg highway, but it can also be equipped with a third row of seats and a diesel engine. And did we mention that this car looks sleek?
Putting it All Together
You have a variety of options. Whether you want something new or used, would prefer an SUV or minivan, or want something cheap or luxurious, there are plenty of choices on the market. The key is to do your research, remain patient, and take your time. Don’t get too married to a particular transaction, or you’ll lose your leverage.
You’ll know when the right deal comes along, and you can make a smart choice that’s functional, cost-effective, and eco-friendly.
How Climate Change Altered this Engineer’s Life
Living the life of an engineer likely sounds pretty glamorous: you are educated and highly regarded, typically have high paying gigs, and with the breadth of knowledge and array of fields of specialty, your possibility for jobs is usually immense. But what if there was something else that needed your attention? Something bigger than just being an engineer, going to work every day and doing the same technical tasks typically associated with the profession?
For Kevin McCroary, that is exactly how it played out. A successful engineer, gainfully employed in a prosperous job, a simple trip to the Philippines made him see that there was a bigger issue at hand than using his engineer training in a traditional profession. This bigger issue was that of climate change. And working as a volunteer for underprivileged children in the Philippines, he saw first-hand the extensive pollution and poverty that existed here and that impacted the livelihood of these kids and their families.
Upon returning home, from his trip to the Philippines he had a new perspective of the impact we as individuals and as humanity have on the earth, and more than that Kevin wanted to know more. He started to do some research and study these human-environmental interactions, and shortly thereafter ended up in Greenland. There, he spoke to a man who had lost his home in a tsunami, and, who, through consistent weather tracking could indeed confirm that the current weather trends were “strange:” there was undeniably a general warming tendency happening in the arctic, causing an array of negative effects.
The combination of these observations, as well as his own research, led Kevin to conclude that something had to be done. With that in mind, he launched his project Legend Bracelet. The mission is simple: create a reminder of the legacy we are leaving behind. As individuals and as humanity, we are leaving behind an imprint on the earth, and the magnitude of it is something that needs to be brought to the forefront of public awareness. The idea is to have a bracelet that can serve as a daily reminder of the impact on the earth that each of us can have every day, regardless of how big or small. The bracelet has two capsules: the first is filled with sand or earth, and the second is empty. As the owner, you are to fill the empty one with your own earth, carrying it with you as a reminder and symbol of your connection and commitment to helping look after our environment.
We are all impacted by climate change, and we all have a responsibility to help. And it can start with something as simple as putting on a bracelet. Support Kevin on his Kickstarter campaign for Legend Bracelet, tell others about it, or take action in your own way and play your part in slowing down the effects of climate change. You may think “but I’m just one person!” You are indeed. But so is he. Every change starts with one.
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