DEFINING RESPONSIBLE INVESTMENT AT ACTIVE SUPER
Active Super recognises that environmental, social and governance (ESG) factors are important considerations in driving long-term investment returns and reducing risk. We incorporate consideration of ESG factors as part of our fiduciary investment management obligation through the responsible investment approach detailed in our Responsible Investment Policy.
For Active Super, responsible investment means:
- Investment restrictions: Neither Active Super nor our external investment managers investing on our behalf, will invest directly in shares of listed companies that contravene our restriction criteria, including companies involved in:1
- Tobacco: companies that derive any revenue directly from the manufacture or production of tobacco products. Does not include paper, packaging or retail sales.
- Controversial weapons: companies that derive any revenue directly from the manufacture or production of land mines, cluster bombs or nuclear weapons.
- Gambling: companies that derive 10% or more of their revenue directly from the provision of gambling services to consumers, or the manufacture, production or hosting of gambling machines. Does not include revenue from food or beverage sales, or from retail sales of lottery tickets.
- Armaments: companies that derive 10% or more of their revenue directly from the manufacture or production of armaments.
- Coal and oil tar: companies that derive 33.3% or more of their revenue directly from coal mining, oil tar sands or coal fired electricity utilities.
- High ESG risks: companies in any sector or industry that the Trustee has determined have a high ESG risk profile and poor management of ESG risks. This determination will be informed by research from specialised ESG data providers, and take into account all relevant factors including a company’s ESG commitments and transition plans.
- Country: companies domiciled in Russia2.
Note that these restrictions apply only to direct investment in listed company shares,either by the Trustee or an external investment manager under a mandate from the Trustee. They do not apply to investments in pooled funds.
Our responsible investment approach covers all of our super and account-based pension products. For more information, please read our Responsible Investment Policy.
1 Developed markets only. Revenue-based restriction criteria apply only to companies that derive revenue directly from the relevant activities, and do not include revenue from the supply of goods, services or materials to those activities.
2 From April 2022. Note that some managers may have residual holdings acquired prior to the restriction coming into effect and that are unable to be liquidated due to international sanctions.