"Is it ok for HESTA to invest in BHP directly or indirectly ? BHP is the coal business. Banks provide loans to BHP. Should I read HESTA website to figure this out and accept them as gospel?"
Clearly, there are wide range of opinions as to whether it is a perfectly economically rational and sustainable thing for BHP to dig big holes in the ground and put the stuff that comes out of those holes onto ships bound for China.
And, clearly, most people say the economic well being of the world and the development of of humanity more than justifies the economic impacts of mining coal. Others have opposing views.
But that sort of thing is highly individual-specific.
And for that reason the default convention in the investment management industry is that, unless it is explicitly stated, it is assumed that all investment institutions with an Australian mandate would be able to invest in BHP (or TAH, or CBA, or any other listed company that anyone might deem to be undesirable at any time).
And this current investment industry convention of "Unless advised otherwise, assume we invest in all companies", seems to me to be more than adequate to address your concerns.
The solution for people who do have ethical or moral issues related to ESG factors is to subscribe to ethical or green funds.
But to have the entire investment management industry structure itself in a manner that would suit the personal philosophy of every single one of us is self-evidently totally impractical.
TSE Price at posting:
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