Responsible Investment

We believe strong performance needs to be underpinned by responsible investment practices.

ESG consideration

We invest to deliver strong, long-term returns for members. ESG factors play an important role in the investment decisions we make across our portfolio, because we believe these issues can present significant risks and opportunities for long-term investment performance. ESG factors taken into account in our investment process may include:

ESG INTEGRATION

Positive investments
We actively seek investment opportunities that can offset long-term environmental and social risks while delivering the right risk and return characteristics to meet our investment objectives for our members

Restricted investments
We have restrictions on investment in shares of companies involved with certain activities.
We take a strict line with some activities. For example, we restrict investment in companies that derive any revenue directly from the manufacture and/or production of nuclear weapons, land mines, or tobacco products.^#
In other cases, we aim to limit investment based on, revenue directly attributable to those activities - for example, the manufacture and/or production of armaments and gambling machines, uranium and coal mining, and coal and nuclear electricity generation. See our Responsible Investment Policy and below for more details.

Monitoring
We monitor our investments for ESG risks and engage with our fund managers and advisors on how to integrate ESG considerations into the investment process.

ACTIVE OWNERSHIP

Engagement
We monitor and engage with selected companies we invest in on ESG issues through our investment managers, our involvement with industry groups and associations like the Australian Council of Superannuation Investors (ACSI) and CGI Glass Lewis and occasionally by direct engagement as an investor.
More broadly, we work with leading industry bodies to press for positive change on ESG issues.

Proxy voting
We aim to vote at shareholder meetings of the companies we invest in and generally publish our decisions on our website before the meetings take place.

Disclosure
We disclose information on our website about our holdings, proxy voting and responsible investment practices so members can see where and how their money is invested.

Investment restrictions with revenue thresholds

To limit our exposure to certain industries and activities, we apply investment restrictions across the Active Super listed equities portfolios. Some of our investment restrictions are based on revenue thresholds.

We do not invest in listed company shares in developed markets that derive the following percentage or more of their gross revenue from the activities detailed below.

Activities	Revenue thresholds^*
Companies directly involved in the manufacture and/or production of tobacco products**, nuclear weapons, cluster bombs, or land mines	0%
Companies that derive more than the revenue threshold from gambling***, armaments, uranium mining or nuclear power	10% or more
Companies that derive more than the revenue threshold from coal mining, oil tar sands mining, coal-fired electricity generation	33.3% or more

For more information on our investment restrictions, please read our responsible investment definition and our Responsible Investment Policy.

^#Does not include revenue from the supply of goods, services or materials to tobacco producers (such as paper, packaging and logistics), or revenue from the sale or distribution of tobacco products.

*10% and 33.3% thresholds are calculated by MSCI based on gross revenue. Thresholds apply only to revenue derived directly from the relevant activities and do not include revenue from the supply of goods, services or materials to companies involved in those activities.

** Tobacco products include cigars, blunts, cigarettes, e-cigarettes, inhalers, beedis, kreteks, smokeless tobacco, snuff, snus, dissolvable and chewing tobacco. Does not include paper or packaging, sales or distribution.

*** Gambling means the provision of gambling services, the manufacture or production of gambling machines, and the hosting of gambling machines. Does not include food and beverage sales.