UniSuper, as a regulated superannuation fund and fiduciary, takes seriously the duty incumbent upon it to avoid the permanent loss of member capital and to invest member funds in a pragmatic manner.
UniSuper's investment approach is informed by its Investment Beliefs, Investment Guiding Principles and Responsible Investment and Proxy Voting Policy.
UniSuper's approach to ESG and RI, can be categorised as follows:
1. Active ownership - as a large investor we have a duty to responsibly exercise our ownership rights. We do so via extensive engagement with investee companies and by voting at company AGMs.
2. ESG integration and investment due diligence - We continually strive to assess and consider ESG risk as part of the investment management and decision making process.
3. Member choice (sustainable options) - ESG considerations are integrated into all investments (UniSuper was one of the first Australian super funds to screen tobacco from all portfolios in 2011). UniSuper also provides for member choice and provides its members with three dedicated options which apply more extensive screens and pursue relevant thematics. Specifically, UniSuper has two Sustainable options (Balanced and High Growth) and a Global Environmental Opportunities (GEO) option. All three of these options exclude alcohol, gaming, weapons and fossil fuels. The two Sustainable options then seek to target investments in companies that perform well from a sustainability perspective (i.e. positive screening), noting also that the Sustainable Balanced option also has a significant green bond allocation. The GEO option targets investments in companies that derive >50% of their revenues from clean energy, energy efficiency, clean water, green buildings and waste / pollution control.
4. Collaboration and advocacy - In order to demonstrate our commitment and pursuit of improved ESG / RI standards and performance we also participate in a broad range of collective / collaborative initiatives. This collaborative work is both informal with peers and via a range of formal avenues (e.g. PRI, ACSI, RIAA, IGCC, ACGA, ESG RA).