Market Forces said it was outrageous Australia's largest super funds were propping up the expansion of coal, oil and gas with billions from Australians' retirement savings.
The clean energy finance advocacy group created what it dubbed the Fossil Fuel Expansion Index, or the FFX200, a global list of 200 companies it said had the biggest fossil fuel expansion plans.
The list includes Australia's BHP, Whitehaven Coal, Woodside Energy and Santos, as well as multinational oil giants BP, Chevron, ExxonMobil and others.
Overall the average super fund investment option has 5.8 per cent of its members' share investments in these companies, the report states.
"Out of the tens of thousands of companies Australian superannuation funds could invest in, they make the choice every day to keep their members exposed to the FFX200, while failing to hold these companies accountable for their fossil fuel expansion plans," Market Forces said in the 45-page report.
Report co-author Brett Morgan, Market Forces' head of Australian campaigns, said super funds claimed they used their influence as a shareholder to change fossil fuel companies, but that hadn't been effective in practice.
"I'll also say that the damage these companies could do to our climate by charging ahead with new coal and gas projects would have significant ramifications for Australians' retirement savings," he told AAP.
The FFX200 also underperformed the major sharemarket indices, Market Forces said.
Of the 30 funds analysed, AMP's MySuper 1970s fund was the most exposed to the companies in the FFX200, with 7.3 per cent of its portfolio invested in them, the report found..
Funds offered by Commonwealth Super and Australian Retirement Trust were close behind, with 7.2 and 7.1 per cent invested.
AMP said it recognised the investment industry was a critical pillar in supporting the economy as it undergoes a global energy transition.
"An important way we do this is by being an active owner of the assets in which we invest, voting on companies relating to ESG (environmental, social and governance) matters including climate change and participating in investor collaborations on climate action," an AMP spokesperson said.
"AMP further supports the energy transition through selective investment in assets that will benefit from the transition to build portfolio resilience."
Out of Australia's 30 largest super funds, Australian Ethical's balanced option was the only one that wasn't invested in any of the FFX200 companies.
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