Australia's leading science institution has put its money where its mouth is on climate change and withdrawn its direct investments in fossil fuel companies.

The decision was outlined in a speech by Australian Academy of Science president Professor Andrew Holmes at a climate science conference in Hobart on Tuesday, in which he urged scientists to be "truth tellers" and fight against "scientific fallacy" in the public debate.

The Australian Academy of Science has withdrawn its direct investments in fossil fuel companies. Credit:Ina Fassbender

The global divestment movement, which is pushing for institutions to withdraw investment dollars from coal, oil and gas companies because of their contribution to climate change, has been gaining traction in recent years.

Perhaps the most notable instance of fossil fuel divestment came in June when Norway's $900 billion sovereign wealth fund withdrew from stocks dominated by coal.