Environmental, social and governance (ESG)
Responsible investment is a crucial part of our investment strategy and plays a critical role in delivering long-term sustainable returns on your super.
We believe proactive management and engagement with ESG risks and opportunities adds value to your super and can lead to positive social and environmental impacts that benefit us all.
As people become more aware of climate change risks and the importance of responsible businesses, this will increasingly influence investor and consumer choices.
Investments that have a positive impact on society will likely increase in value, while those that don't are likely to become less viable over time and lose value.
By integrating ESG considerations into how we assess investment risk, it reduces the chances of ESG issues - such as climate related destruction or a transition away from a particular industry - having a negative impact on returns.
Our approach to ESG
We address ESG issues and opportunities in two ways: integration and impact.
We consider ESG risks, impacts and opportunities throughout our investment process, including how we select, retain, manage, and realise investments.
We seek to enhance our investments' value and long-term viability by engaging with investee companies to improve their ESG credentials and outcomes.
ESG Impact investments
We seek compelling investment opportunities that address specific socio-ecological issues or exploit ESG-related trends or developments. This includes investing in companies at the forefront of innovation and emerging technologies and backing businesses to create employment opportunities and economic development in our local communities and regions.
Our ESG priorities
We have set five ESG priority targets to help us back small businesses, strengthen our communities and support a transition to a low carbon economy.
- Target 1: Allocate more than 15% of funds to Impact Investments
- Target 2: Reduce the portfolio’s carbon footprint by 50% by 2030
- Target 3: Invest $1.5 billion in small business by 2030
- Target 4: Create 100,000 new skilled jobs in Australia
- Target 5: Eradicate modern slavery from supply chains by 2030
Want your super to work harder for a sustainable future?
Try our Sustainable investment option
Our Sustainable option aims to achieve strong returns by investing in a diversified mix of mainly growth assets with additional social and environmental screens.