Question 8 (10 marks) A superannuation fund currently has a large investment in an electricity generating company that is listed on the Australian Securities Exchange. The company currently generates all of its electricity from coal-fired power plants. The superannuation fund would like to reduce its carbon footprint and has asked you to provide advice on whether they should divest their shareholding in the company or whether they should engage in shareholder activism. Present detailed arguments of the reasons for and against the superannuation fund engaging in 1) divestment and 2) shareholder activism. Which approach would you recommend? Why?