Innovation

Before the development of Future Super, Australians had to invest in fossil fuels, as there were no clean energy superannuation options. To fill this gap, the Future Super team envisioned a super that supports people in taking climate action through divesting from fossil fuels. This approach encourages people to see the potential of their super to create societal change. Their business was started with three ambitious, publicly stated goals (Sheikh, 2020):

1. Managing more than $1 billion in superannuation assets.
2. Delivering strong investment performance.
3. Inspiring change in the superannuation industry to promote divestment from fossil fuels.

Grace highlights the need for business innovations that respond to current pressing world events. Since the establishment of the fossil fuel-free super fund, the business has continued to innovate in response to societies foremost issues. Future Super has achieved this through their work in the “Equality Is Everyone’s Business” project and their establishment of an inclusive language guide for workplaces (Future Super, 2019).

Future Super was the first Australian Super Fund to not invest in fossil fuels!

Inspiration

The idea for Future Super came about in response to the question: “what work can we do to make the biggest impact on climate change?”

The co-founders investigated the largest pools of money and found superannuation to be one. In September 2020, Superannuation assets totalled $2.9 trillion (ASFA,2020). Super is owned by everyday people, who before Future Super existed had no choice but to invest in fossil fuels. Inspired by the potential impact an ethical super fund, the co-founders instilled their business with a strong sense of purpose. Grace Palos, Chief Marketing Director, explains that (Palos, 2021):

“purpose is chiefly responsible for success; it is hard to market something that doesn’t have a clear point of view on the world.”

Having steered the business’ marketing strategy, Grace is passionate about making people cognizant of the power of their money by equipping them with the knowledge of the incredible change that can be made possible by collective divestment from fossil fuels.

Overall impact

By June 2020, the business had made significant progress in achieving their goals. Firstly, around $900 million in superannuation assets was owned by Future Super. Their investment performance was strong, with their “Balanced Impact Investment Option” providing a competitive return of 6.68% p.a (Sheikh, 2020). Additionally, the growth and evolution of Future Super had inspired a ripple effect of change at various levels. This includes on an individual level where ordinary Australians had made the switch to a more sustainable super and on an industry level as other Australian super funds had made net zero emissions pledges (Sheikh, 2020).

Since its establishment, the business has embodied a clear sense of purpose; to empower everyday Australians with knowledge and resources to make a real difference with their retirement savings.

Grace encapsulates this impact as she explains in the interview (Palos, 2021):

“People want to use their superannuation as a lever for change in society and the planet.”

Business benefit

The creation of a fossil fuel-free super fund had significant positive benefits for Future Super.

“People want to invest in a better future and that is why Future Super’s membership has doubled and close to 1 billion dollars has been divested from fossil fuels" (Palos 2021).

Grace explains how, with the help of Future Super, people have discovered that they do not need to go against their values to build retirement savings.

The strong sense of purpose intrinsic to their business innovation has led to an inspiring and driven workplace environment. The people who work at Future Super are passionate about supporting climate action whilst ensuring financial security for Australians. Grace articulates that it is inspiring to work for an ambitious business that “walks the walk” especially because as a marketer, she does not believe in spreading messages that are not “backed up with action”. She attributes the workplaces influential culture, where employees are constantly learning from one another, to Future Super’s strong sense of purpose.

Social and environmental benefit

The work of Future Super demonstrates that by pooling money together, ordinary Australians can have a significant impact on how companies act and behave environmentally. A large percentage of Future Super’s growth comes from word of mouth, highlighting how members are empowered to create societal change by starting important conversations around divestment from fossil fuels.

Grace explains how the superannuation industry is changing and that:

“We [Future Super] have had a role to play in that. By existing, we show that it is possible, and we show that change happens now – it does not happen in 50 years – our planet is not going to wait for 50 years” (Palos, 2021).

Grace explains how Future Super’s membership base is “united to see a better world” as they benefit both society and the environment with their superannuation.

Reference list

ASFA.(2020). Superannuation Statistics. Retrieved from https://www.superannuation.asn.au/resources/superannuation-statistics.

Future Super. (2017). $200 Million In 2 years: How Future Super Helped Thousand Of Aussies Divest Their Superannuation. Retrieved from https://www.futuresuper.com.au/blog/how-future-super-grew-by-200-million-in-just-2-years

Future Super.(2019). Equality Is Everyone’s Business. Retrieved from https://equalityiseveryonesbusiness.com/

Future Super. (n.d). Not Business As Usual. Retrieved from https://www.notbusinessasusual.co/.

Palos, G. (2021, February 4). Personal Interview.

Sheikh, S. (2020). Five Years of Future Super. Retrieved from https://www.futuresuper.com.au/blog/five-years-of-future-super

Interview

Grace Palos, Chief Marketing Officer