Socially Responsible

When you invest in our SRI – Balanced option, you can be confident that your super or pension seeks to reduce exposure to the following industries: 

Fossil fuels
Companies that own reserves, or explore, mine, extract, produce, refine or generate energy from fossil fuels, as well as companies that receive revenue from servicing these sectors through equipment services, pipeline transport or distribution. 

A zero-materiality threshold is applied, but dedicated renewable energy generators with backup fossil fuel sources (less than 5%) may remain investible. Data is supplied by MSCI and ISS.  

Controversial weapons 
Companies involved in the development, production, maintenance or sale of controversial weapons (including cluster munitions, anti-personnel mines, depleted uranium, biological weapons, chemical weapons, blinding laser weapons, non-detectable fragment weapons, incendiary weapons and nuclear weapons). This includes companies directly involved, as well as prime contractors, key subcontractors and suppliers of key components. Data is supplied by Institutional Shareholder Services (ISS).

For-profit detention
Companies that derive more than 5% of their revenue from for-profit detention, such as prisons and immigration detention. Data is supplied by ISS.

Gambling
Companies that derive more than 5% of their revenue from gambling. Data is supplied by MSCI.

Human rights or labour rights breaches
Companies that breach the United Nations Global Compact or International Labour Organization’s (ILO) Core Conventions. Data is supplied by MSCI.

Live animal export
Companies involved in the export of live animals for the purpose of slaughter, husbandry and breeding, including specialised transport companies. Data is supplied by ISS.

Predatory lending
Companies involved in predatory lending, including unfair or deceptive products, excessive interest rates, misleading marketing, unnecessary costs and hidden fees, and those targeting minority, low-income or elderly consumers. Data is supplied by ISS.

Tobacco
Companies that manufacture tobacco products, such as cigars, blunts, cigarettes, e-cigarettes, inhalers, beedis, kreteks, smokeless tobacco, snuff, snus, dissolvable and chewing tobacco. This also includes companies that grow or process raw tobacco leaves. Data is supplied by MSCI.

Uncertified palm oil
Companies involved in growing, processing or using palm oil that derive more than 10% of their revenue from these activities and where less than 50% of the palm oil is Roundtable on Sustainable Palm Oil (RSPO)-certified. Data is supplied by ISS.

Very poor environmental, social and governance (ESG) policies and systems
Companies with an MSCI ESG rating of B or CCC.

To develop our investment approach for the SRI – Balanced option, we partnered with specialist external investment managers and sourced sustainable investment data from external providers. 

Australian and international shares
We invest in listed Australian and international (developed market) share portfolios via an investment manager. The manager excludes the relevant investments, then seeks to maximise the Sustainable Development Goal (SDG) score of the portfolio. Data is supplied by ISS.

Cash
We invest in cash products that are managed by investment managers with responsible investment processes. We apply the relevant exclusions listed above when selecting products for inclusion in this option. 

Diversified fixed interest 
We invest in passively managed Australian and global bond ESG funds whose processes most closely match our exclusions. 

The investment manager applies rules-based exclusions to non-government securities associated with fossil fuels, alcohol, tobacco, gambling, adult entertainment, genetically modified organisms, military weapons, civilian firearms and nuclear power. For the global bond funds, treasury and government-related issuers with an MSCI ESG government rating below ‘BB’ are also excluded. Definitions for exclusions are based on the Bloomberg Barclays Index exclusion methodology.

Infrastructure
We invest in infrastructure assets including renewable energy, water utilities and social infrastructure. We apply the relevant exclusions listed above when selecting assets for inclusion in this option. 

Private equity
We invest in a diversified mix of funds that have been identified as including companies that contribute towards achieving one or more SDG, or are managed by an investment manager that has stronger-than-average responsible investment processes relative to peers within the same asset class. We apply the relevant exclusions listed above when selecting funds for inclusion in this option. 

Property
We invest in diversified property funds that have been identified as leaders at the overall, regional or strategy level by their Global Real Estate Sustainability Benchmark (GRESB) score and ranking. We apply the relevant exclusions listed above when selecting funds for inclusion in this option.