How we invest responsibly

We believe well-governed companies that manage material^* Environmental, Social and Governance (ESG) risks and opportunities in their operations and supply chains, such as those that impact employees, suppliers, customers, communities and the environment, will protect assets and grow our members retirement savings over the long term. Our approach to responsible investment includes:

ESG integration

We assess how material ESG risks and opportunities are considered when choosing to invest in a company, or asset, or through an external investment manager and integrate these risks and opportunities as one input into our investment processes.

We're active stewards

In FY23, through voting at annual meetings and through discussions with the company or manager, we aimed to improve practices so that companies we invest in are better run and provide more sustainable long-term returns. We also encourage the development of standards, guidelines and regulatory reform while also promoting a shift towards a sustainable finance system. Either directly or alongside others, we support the development of policies, and research and make submissions to government and regulatory consultations.

We're evidence driven

We use a wide range of information and data to continuously evolve our evidence-based approach. We're involved in ongoing research to understand emerging issues, and provide evidence to measure and support our approach.

We're transparent

We measure our activities and report on our progress, so our members can be confident that we do what we say we do.

While our core focus is on integration of material ESG risks and opportunities, we have identified key areas of focus: climate change and the energy transition and human, community, and labour rights (for example modern slavery and workplace safety). These areas of focus represent systemic risk, are aligned with our members' interests, and are topics where we believe we can measure, engage and report on our progress.

Importantly, we strive to demonstrate responsible investment leadership in asset classes where we invest directly and use our knowledge gained from the industries our members and employers work in. For example, investing in the real economy (including new properties and how we improve the sustainability of existing buildings), affordable housing, and supporting the energy transition (including an equitable transition for workers.)

^* Material ESG risks and opportunities are those that are likely to affect business or investment performance.

Our values