Australia's biggest superannuation fund has rejected allegations that it is not doing enough to stop "monstrous carbon bombs" being released by Woodside Energy.
Shareholder activist organisation Market Forces on Tuesday alleged AustralianSuper's actions in support of Woodside's expansion were a "clear cut case of greenwashing" and undermined the fund's climate promises.
AustralianSuper is one of the top five shareholders in Woodside and said it had gained climate commitments from management.
"We have met with Woodside on multiple occasions to discuss the company's net-zero strategy, including its capital allocation and carbon reduction initiatives," an AustralianSuper spokesman told AAP.
This includes a non-binding "say on climate" resolution to be put to the annual general meeting in 2024.
Companies are increasingly giving shareholders a vote on climate plans, including big emitters BHP, Origin, Rio Tinto and Santos.
"Before Woodside’s AGM, the board made a formal commitment to a 2024 'say on climate' vote and to increase engagement with shareholders to address Scope 3 emissions and customer demand," AustralianSuper said.
In light of these commitments from the company, the super fund said it supported the three directors seeking re-election.
The fund said it was an "active investor" and would assess Woodside's climate strategy and vote accordingly next year.
AustralianSuper has more than three million members and $274 billion in assets.
According to the Market Forces analysis, out of 18 funds that voted against Woodside's climate plan in 2022, AustralianSuper was the only fund that failed to escalate pressure on the company by voting against the board in 2023.
The world's biggest asset manager, BlackRock, was among those that voted against the re-election of Woodside director Ian Macfarlane on climate grounds in 2023.
Mr Macfarlane, as Australia's longest-serving resources and energy minister, oversaw the expansion of the country's biggest exports that now pose a challenge as advanced economies strive to reduce their carbon footprints.
"AustralianSuper bought tens of millions of shares in Woodside last year and has failed to use this increased influence over the company to demand an end to its oil and gas expansion plans," Market Forces campaigner Brett Morgan said.
He said "furious" account holders are demanding funds take stronger climate action instead of enabling "monstrous carbon bombs" such as Woodside's Scarborough gas project or opening up the Browse gas field off Western Australia.
"All super funds must end the greenwashing by immediately and publicly ramping up efforts to stop new or expanded fossil fuel projects in their tracks," Mr Morgan said.
AustralianSuper said it would "continue to engage with the company in order to understand how it plans to transition its operations to deliver long-term value in a low-carbon environment".
Woodside has been contacted for comment.
