Why choose a super fund focused on ESG

The way your fund considers ESG issues is an important part of choosing a super fund. Not only does it help you to achieve your best possible financial position in retirement, but it promotes a sustainable future too. At AustralianSuper, this overlays all our investment decisions.

Super and a sustainable future

Super is about your future in retirement – and research shows the benefits of ESG practices on long-term performance. Of 2,200 studies, 63% indicated a positive connection between ESG performance and financial results¹.

Andrew Gray leads the ESG and stewardship team at AustralianSuper. He says super fund members are more engaged than ever with how their retirement savings are being invested. ‘I think the concept of responsible investing – whether it’s called ESG, ethical investing, conscious investing, or impact investing – has become a household term,’ Andrew says. ‘I think the average person now is thinking about or aware of whether their super fund is acting as a responsible investor no matter what term they put on it.’

AustralianSuper and responsible investment

AustralianSuper applies an ESG ‘lens’ over every investment it makes. In a fast-changing world, we assess ESG developments and trends to identify emerging risks and opportunities. Importantly, the Fund is focused on investments it rates as most important to future proof returns for members.

Our approach as a responsible investor has contributed to being a top performing fund over 7, 10, 15 and 20 years².

The largest superannuation fund in Australia, AustralianSuper is globally recognised as a leader in responsible investment with an A+ rating³.

Driving change – ESG issues focus

Using our size and scale, we can influence companies to drive better environmental and social outcomes. Our focus is on the environmental and social issues we believe present the greatest risks and opportunities to members’ investment outcomes. 

• ESG issues we’re currently focused on include: 
• board effectiveness
• climate change
• workplace practices
• diversity
• First Nations peoples data privacy and security
• plastics and the circular economy. 

Spotlight on Modern Slavery

As a responsible investor, we actively review labour supply chain risks. We advocate for ethical and transparent workplace practices in the companies we invest in and across their supply chains.

The Fund is a founding member and co-Chair of the Investors Against Slavery and Trafficking (IAST-APAC). The initiative aims to get companies to clean up their supply chains and operations.

We’ve also published our first Modern Slavery Statement in 2021. It details how the Fund is identifying and managing modern slavery risks within our organisation, investments and supply chains.

Read more: Responsible Investing – ESG

Sources

1. PRI Global Assessment Report 2020, UNEP Finance Initiative and United Nations Global Impact.

2. Based on the AustralianSuper Balanced investment option compared to the SuperRatings Fund Crediting Rate Survey — SR50 Balanced (60–76) Index, periods March 2022. Investment returns are not guaranteed. Past performance is not a reliable indicator of future returns.

3. The PRI assesses each signatory annually. AustralianSuper achieved the highest possible rating of A+ for Overarching Approach to Responsible Investment and Governance and Listed Equity-Active Ownership by the United Nation in the PRI Global Assessment Report 2020.

Sponsored by AustralianSuper. This information may be general financial advice which doesn’t take into account your personal objectives, financial situation or needs.  Before making a decision about AustralianSuper, you should think about your financial requirements and refer to the relevant Product Disclosure Statement. at australiansuper.com/PDS or by calling 1300 300 273. A Target Market Determination (TMD) is a document that outlines the target market a product has been designed for. Find the TMDs ataustraliansuper.com/TMD. AustralianSuper Pty Ltd ABN 94 006 457 987, AFSL 233788, Trustee of AustralianSuper ABN 65 714 394 898.