Our environmental, social and governance (ESG) approach
Our approach to sustainable investing is guided by our legal duty to members, our core investment beliefs, and our Sustainable Investment Policy.
We use the following as part of our approach to sustainable investment:
- ESG integration
- Stewardship (engagement and proxy voting)
- and, in limited cases, screening (exclusions).
We believe integrating ESG factors into our investment processes alongside other traditional financial considerations helps us make better long-term decisions for our members' retirement outcomes. Our Sustainable Investment Policy covers our over-arching principles.
How does that work?
We invest the majority of the Fund's portfolio through external investment managers. Therefore, ESG integration is predominantly executed through the selection, appointment, and monitoring of new and existing managers.
We undertake stewardship activities through engagement and proxy voting. The number of our holdings means we cannot engage all the companies in which we are invested. Where we do engage our investee companies, we use the following methods; directly, collaboratively, or through a service provider.
Where possible, we will endeavour to vote at all company meetings on resolutions for which we are eligible to vote, with some exceptions, detailed in our Sustainable Investment Policy.
Our Sustainable Investment Report 2024-25 provides further details of our approach and the outcomes and achievements for the financial year ending 30 June 2025.
Exclusions
We apply screening (exclusions) in limited circumstances.
There are some occasions however, where it may be considered appropriate to exclude certain investments.
Details of the exclusions for applicable investment options including the exceptions to these exclusions are outlined in our Super Savings Investment Guide and QSuper Investment Guide.
What are ESG factors?
Examples of ESG factors that we may consider as part of our investment process are:
| Environmental | Social | Governance |
|---|---|---|
| Climate change | Health and safety | Board independence |
| Biodiversity | Human rights and modern slavery | Board and company diversity |
| Waste and pollution | Labour standards | Shareholder rights |
| Energy efficiency | First Nations | Executive remuneration |
Our approach to climate change
Climate change represents one of the most significant challenges of our time, and as global investors we’re committed to doing our part towards investing in a low-carbon economy.
Our Sustainable Investment Policy outlines our approach to managing climate-related investment risks and opportunities in the investment portfolio. We have adopted a target of a net zero greenhouse gas emissions investment portfolio by 2050.1
Our Net Zero 2050 Roadmap
We recognise the importance of enhancing our disclosures for our members and other stakeholders. Our Net Zero 2050 Roadmap outlines our current plan to transition towards a net-zero greenhouse gas emissions investment portfolio by 20501 and accelerate actions towards our target. It establishes the guiding principles, our approach to setting interim targets and the 2-year action plan for our investment portfolio.
To demonstrate progress on our commitments, we will report on an annual basis in accordance with voluntary or mandatory requirements.
Choose an option that’s right for you
While we consider sustainable investment approaches across all investment options (except the Cash option), we offer the Socially Conscious Balanced option for members who prefer to invest in an option which has additional exclusions and an additional approach to sustainable investing.
The sustainable investment approaches of integration and stewardship also apply to this option, as relevant to the asset class and investment style. Thematic investing, where investments are selected to access specific trends, such as investment in climate-related opportunities, may also be used when selecting external investment managers for this option.
Frequently asked questions
1. Scope 3 category 15 (investments) emissions. PCAF (2022). The Global GHG Accounting and Reporting Standard Part A: Financed Emissions. Second Edition.