The withdrawal of the United States from the landmark Paris climate accord is an affront to the concerns of millions of Australian and their retirement savings, the country's peak superannuation body says.
"It is disheartening to see a decision like this, by a wealthy industrialised nation, which flies in the face of scientific knowledge and investor concerns," the Australian Council of Superannuation Investors chief executive Louise Davidson said.
US president Donald Trump announced on Friday the US would pull out of the landmark agreement, which was penned in 2015 to curb carbon emissions and which has been signed by 195 nations including Australia
Ms Davidson, whose group represents $450 billion in assets on behalf of over 8 million Australians, joined a global chorus of business leaders damning the move.
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She said it was out of step with expectations that governments would respond to climate change, which threatened the value of investments.
"ACSI members are already investing to support a transition to a low carbon economy," she said. "The Paris Agreement is key to ensuring investors have the confidence to continue to support this transition."
'Stay in step': miners
The Minerals Council of Australia, which campaigned against the Gillard government's carbon tax, said it supported the government's Paris commitment to cut emissions by about 26 per cent from 2005 levels by 2030.
However, the mining body said Australia's emissions policies needed to be "calibrated with those of our trading partners".
The US is Australia's third largest trading partner. China, which remains committed to the agreement, is Australia's biggest trading partner and receives five times as many exports than the US.
"There are economic costs associated with meeting emissions reduction targets and it is critical that Australian governments design climate and energy policies which minimise those economic costs," Minerals Council CEO Brendan Pearson said.
BHP Billiton chief executive Andrew Mackenzie said on Thursday, in anticipation of the US pulling out, that he had tried to convince Mr Trump to stay in the agreement when they met in January.
"I offered that it is possible to be pro-coal but also to stay in the Paris Agreement," Mr Mackenzie told the ABC's 7.30.
Mr Mackenzie, whose $119 billion Melbourne-based company has several shale oil and gas plants in the US, said Australia and other countries should stay in the accord even if the world's second largest carbon emitter withdrew because that was "better than nothing".
Rio Tinto declined to comment on Mr Trump's decision, but has previously pledged support for the Paris agreement.
Under the Paris agreement, nations agreed to cut greenhouse gas emissions to keep global temperature rises to "well below 2 degrees" compared to pre-industrial levels.
Am departing presidential councils. Climate change is real. Leaving Paris is not good for America or the world.
— Elon Musk (@elonmusk) June 1, 2017
Several business leaders globally have expressed disappointment in Mr Trump's decision to pull the US out of the agreement.
Telsla and SpaceX boss Elon Musk said he was resigning from three presidential councils advising on business, manufacturing and infrastructure in protest.
"Climate change is real. Leaving Paris is not good for America or the world," Mr Musk tweeted.
Today's decision is a setback for the environment and for the U.S.'s leadership position in the world. #ParisAgreement
— Lloyd Blankfein (@lloydblankfein) June 1, 2017
General Electric CEO Jeff Immelt tweeted that it was now up to industry to lead action on climate change, and Microsoft president CEO Brad Smith said the software giant remained committed to its own low-emissions goals.
"Our experience shows us that these investments and innovations are good for our planet, our company, our customers and the economy," Mr Smith wrote in a blog post.
Goldman Sachs' CEO Lloyd Blankfein took to Twitter for the first time ever to say the decisions was "a setback for the environment and for the US's leadership position in the world".