Australia's superannuation industry may be at risk from a lack of long-term government strategy on climate change, a report has found.
The Investor Group on Climate Change has called on the government to better develop a strategy to help investors avoid the impacts of climate change.
In a report released on Monday, it has warned short-term policies risked locking in strategies that did little to reduce carbon emissions.
The group's chief executive Emma Herd said a managed transition towards net zero emissions would help build super funds' resilience to climate change.
She said the lack of policy risked sending investment overseas or into higher risk portfolios.
"To strengthen investor confidence and unlock billions of dollars of private sector capital, it is vital that governments take action to support the objectives of the Paris Agreement," Ms Herd said.
A clear strategy towards zero emissions gave investors certainty and avoided sudden, abrupt changes in government policy down the track that could throw investors off balance, the report said.
The report, aimed at both the Australian and New Zealand governments, made six recommendations including the need for community consultation.
There also needed to be better modelling on the impacts climate change would have on investments, it said.
Long-term investments had a critical role in helping build up green infrastructure, the report said.
"However, investors can't do this alone," it said.
"To strengthen investor confidence, it is vital that governments deliver credible and continued support for action."