State Super considers the integration of ESG information throughout mainstream investment analysis to be essential, and therefore promotes integration of material ESG issues into investment decision-making by its fund managers. State Super expects its fund managers to exercise its ownership rights including proxy voting and engagement with company management and to manage investments on behalf of State Super with long-term investment performance in mind.
State Super includes assessment of the ESG capabilities of fund managers as part of due diligence in manager selection and in periodic reviews of incumbent managers. State Super ensures that all investment management agreements cover investment restrictions. State Super commends the Australian Council of Superannuation Investors (ACSI) Corporate Governance Guidelines to its fund managers for use when engaing with companies on ESG issues. In relation to State Super’s unlisted investments, State Super will always aim for board representation and negative control, which are used to control the risks of the investment including from an ESG perspective.