Superannuation giant HESTA has advised AGL Energy, Origin, Santos and Woodside that it may offload their stocks if they do not get serious about limiting global warming.

The major industry super fund is lifting its emissions reduction ambitions across its $68 billion portfolio, and says the four stocks, in which it has about $720 million invested, have been put on a watchlist.

The health industry super fund has reportedly increased its 2030 target for emissions reduction to 50 per cent from 33 per cent.

Chief executive Debby Blakey says science clearly shows that more action is needed this decade.

“As the need to mitigate climate risk grows more urgent, we are increasingly concerned about the gap between these commitments and between their action if they’re going to transition their businesses in line with the goals of the Paris Agreement,” she told reporters this week. 

“Given the really important role they have in mitigating climate risk and reducing Australians emissions, we do think there’s a need to demonstrate that alignment.”

HESTA has written to the chairs of the four companies informing them that their stocks have been placed on the watchlist and questioning them about the apparent disparity between their strategic targets and a pathway to 1.5 degree warming.

There is no specific deadline for HESTA to see action from the energy suppliers, and the company is clear that divestment will only be used as a last option.

“At this stage, we do not believe divestment is the right option, and we believe there’s an opportunity for change through active engagement,” Ms Blakey said.