Responsible Investing
Responsible Investing
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We understand our members are increasingly interested in how their superannuation is invested and are concerned with how those investments impact our broader community. Responsible investing is important for all of Super SA’s investment options.
Our investment partner
The Super SA Board is responsible for the administration of South Australian public sector superannuation funds, and South Australia’s specialist investment manager, Funds SA, is responsible for the control and management of those funds.
An integral part of Funds SA’s investment process is incorporating responsible investing to support long-term outcomes. Funds SA defines responsible investment as a financial outcomes-focused approach that complements traditional investment analysis through consideration of Environmental, Social, and Governance (ESG) factors in investment analysis and investment Stewardship.
Consideration of Environmental, Social, and Governance factors
ESG Integration is the process of explicitly considering ESG issues and opportunities in investment analysis and decision making. The materiality of an ESG issue is determined by the potential impact of the issue on investment returns.
The way in which ESG issues can be integrated into investment analysis and decision making is described below.
Environmental
Considering how companies impact the environment. For example, recognising that climate change presents a systemic risk impacting potential investment returns over the coming decades.
- Climate change
- Resource use
- Biodiversity and nature impacts
- Environmental regulations
- Physical risks to business operations
Social
Examining how a company is looking after the interests of employees, customers, and the broader community to protect investment value.
- Human rights
- Human capital and labour practices
- Employee safety, health
- Understanding of the supply chain
Governance
Analysing the governance procedures and policies to ensure that the interests of shareholders are aligned with company management.
- Corporate behaviour
- Governance structure
- Bribery and corruption
- Code of conduct
Investment stewardship
Investment Stewardship is the responsible oversight and management of investments. It is an important component of Funds SA’s approach to responsible investment and focuses on Funds SA’s responsibility to take actions that protect and create long-term value. Funds SA does this through various means including proxy voting, engagements, and class actions.
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Proxy voting is exercising voting rights at company meetings to formally express approval (or disapproval) on relevant matters such as remuneration, director elections, and corporate activity.
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Engagement is interactions between Funds SA, its investment managers, and companies, in order to improve ESG practices.
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Class actions are where Funds SA participates in proceedings against a company to recover losses incurred if a company has breached applicable law.
View Funds SA's Responsible Investing policy to find out more about how ESG factors and Stewardship are integrated into its investment process.
Climate change
Funds SA recognises that climate change presents a systemic risk impacting potential investment returns over the coming decades. Across the globe, economies are decarbonising, and this brings significant risk and opportunity for investors. View Funds SA's Climate Change Position Statement.
Funds SA acknowledges that its approach to climate change risk will evolve as science, policy, and investment markets develop a greater understanding of climate-resilient investment portfolios. Funds SA has developed a Climate Risk Response Plan that outlines the initial actions it will take to meet its goal of managing the long-term financial risks and opportunities of climate change, and the transition of its investment portfolio towards Net Zero Emissions by 2050.
To achieve its commitment to Net Zero by 2050, Funds SA will take action across its 5-Pillar Climate Risk Response Plan Framework to support a 45% reduction in global emissions by 2030, consistent with the goals of the Paris Agreement.
Principles of responsible investing
Funds SA is a signatory to the United Nations-supported Principles for Responsible Investment (PRI).
The PRI is a global network of asset owners, managers, and service providers working towards putting responsible investment into practice. The Principles provide a framework for integrating ESG considerations into investment decision-making and responsible ownership practices.
The PRI is complementary to Funds SA’s Responsible Investment approach and brings it in alignment with many of its external investment managers who are also PRI signatories. PRI membership supports Funds SA in maintaining awareness of global responsible investment practices and building its capability, networking, and access to industry tools/guidance.
Socially Responsible investment option
Learn more about responsible investing
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This information has been prepared in good faith by Funds SA. However, Funds SA does not warrant the accuracy of the information and to the extent permitted by law, disclaims responsibility for any loss or damage of any nature whatsoever which may be suffered by any person directly or indirectly through relying upon it whether that loss or damage is caused by any fault or negligence of Funds SA or otherwise. The information is not intended to constitute advice and persons should seek professional advice before relying on the information.
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