An Australian parliamentary committee has launched an inquiry into the impact of changes in the investment policies of banks, superannuation funds and other financial institutions on the country's export industries, such as coal mining.
The Trade and Investment Growth Committee plans to investigate the "approach and motivations" of financial institutions toward investing in Australian export industries, it said in a statement on Wednesday.
The inquiry will address issues stemming from banks and other financial companies withdrawing from carbon-intensive industries, such as coal, to meet their commitments to their shareholders and customers to limit global warming.
Australia is the world's biggest exporter of coal, which is the country's second most valuable export, worth A$54 billion ($41.86 billion) in the last financial year. However, that value is expected to drop to $37 billion in the financial year to June, partly because of the impact of COVID-19 on economic growth, according to its trade department.
Australia's Resources Minister Keith Pitt applauded the inquiry as a chance to look into recent moves by banks and superannuation funds, which hold funds for pensions and retirements, to pull back from the coal industry.
“It is of great concern that me that a legitimate industry like coal mining, which makes a significant contribution to the national economy... is being held back by what can only be described as corporate activism," he said in a statement.
Pitt said there were over 70 proposals for new coal mines, or expansion of existing ones, that are at various stages of planning and development.
“It is only fair that banks, superannuation companies and other financial institutions that are withdrawing investment in sections of the resources sector, explain to all those women and men why their jobs are not worth supporting,” Pitt said.
Hearings under the inquiry will begin next month.
(Reporting by Melanie Burton; Editing by Christian Schmollinger)
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