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Responsible investing

Investing for the long-term includes managing ESG risks, like climate change today.

Responsible investing

Investing for the long-term includes managing ESG risks, like climate change today.


As a profit-for-members fund, we believe integrating environmental, social and governance (ESG) factors into our investment processes is consistent with better investment outcomes and contributes to a better future for our members.

To best protect and manage investments for the long-term, ESG impacts, risks and opportunities are considered in our investment decision-making process.

Our ESG approach

Our approach to responsible investing is guided by our fiduciary duty to members, our core investment beliefs, and our Social Licence to Invest framework. In terms of our fiduciary duty to members, we aim to maximise members' real, long-term investment returns without taking undue risk.

We use our influence to encourage companies we invest in to manage ESG issues, and we collaborate with organisations, like Principles for Responsible Investment, GRESB and Climate Action 100+, to improve transparency and ESG practices.

Our ESG policy covers our overarching principles and practices, and our reports offer more detail on our approach.

Choose an option that’s right for you

Our Socially Conscious Balanced option is an ethical investment option that is built for the long-term.

While ESG factors are managed across all our investment options, we offer the Socially Conscious Balanced option for members who want to invest their superannuation according to a wider set of ethical criteria. This option incorporates negative screening, sustainability-orientated investments, impact investing and a responsible approach to environmental, social and ethical considerations, labor standards and governance.

What are environmental, social and governance (ESG) issues?

To ensure the long-term sustainability of returns we consider environmental, social and governance factors in the research, analysis and selection of all our investments. There are many ESG factors to consider including;

 

Environmental Social Governance

Climate change and carbon emissions Health and safety Board independence, structure and diversity

Waste and pollution Human rights Shareholder rights

Energy efficiency Modern slavery and child labour Executive remuneration

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 and creating a more sustainable future for all Australians. We believe that a net-zero greenhouse gas emissions target by 2050 will increasingly be accepted by markets as the base case through which economies will operate. We believe aligning the Sunsuper portfolio to this pathway will help avoid unrewarded risks as businesses and economies transition to a low-carbon future, and result in better outcomes for our members.

Sunsuper’s Climate Action Plan outlines activities we are undertaking to improve our understanding of, and prudently manage, climate-related investment risks and opportunities while delivering on our duty to promote members’ financial interests. The Climate Action Plan includes a commitment to invest and manage the investment portfolio towards achieving a target of net zero greenhouse gas emissions by 2050, which is aligned with the Paris Agreement.

Frequently asked questions

Responsible investing considers environmental, social and governance factors in the research, analysis and selection of all our investments. We see responsible investing as a part of our fiduciary duty to members, to better protect and manage investments for the long-term. As a signatory to the United Nations Principles of Responsible Investing (UNPRI) we manage ESG issues within our investment portfolio in line with the six UNPRI principles.

Read more about our approach to responsible investing in our ESG policy.

Yes. Sunsuper's Socially Conscious Balanced option is a diversified investment option for members who wish to invest with a wider set of ESG criteria.

This option applies additional screening and excludes companies that produce or manufacture tobacco, cluster munitions or landmines. It also does not invest in companies that derive material revenue from the production or provision of services of alcohol, gambling, pornography, live animal exports or nuclear weapons.

This option also excludes companies with a material exposure to the exploration, production, refining, processing of fossil fuels and fossil-fuel power generation (coal, oil and gas).

Our investment team’s expertise and experience help us deliver solid and competitive investment returns over the long-term. View our superannuation performance for the Sunsuper Super-savings account and compare our investment options.