Energy Super is always thinking ahead when it comes to our investment strategy, it’s all about the balancing of the short-term and long-term and ensuring we are considering investment opportunities for our members in a sustainable way to help our members enjoy a better retirement.
OUR SHARED VALUES
“Energising a brighter future for Australia by supporting our members to become financially secure through responsible investment stewardship and responsible operations”
It’s important to not only look at the investment results of your super but also the impact your super will have on the future, for example, looking at the external impacts and what that means for your generation and the generations of the future. Climate change, ethical work practices and being socially aware are even more important today as we look forward.
What is ESG?
ESG stands for Environmental, Social and Governance and these factors play an important view on how Energy Super invests your money. It’s about making sure that we consider the impact our investments have on the environment, for example how the businesses we invest in treat employees, customers, suppliers and the community, how their Board is comprised and as well as their supply chains and diversity policies. It is also important we consider all of these things for our own business at Energy Super.
The table below outlines in more depth what areas fall under ESG.
Conservation of the natural world
Consideration of people & relationships
Standards for running a company
|Climate change and carbon emissions||Customer satisfaction||Board composition & structure|
|Air and water pollution||Data protection and privacy||Audit committee structure|
|Biodiversity||Gender and diversity||Bribery and corruption|
|Deforestation||Employee engagement||Executive compensation|
|Energy efficiency||Community relations||Lobbying|
|Waste management||Human rights||Political contributions|
|Water scarcity||Labour standards||Whistleblower schemes|
Why should we consider ESG?
At Energy Super we believe ESG is important to consider in investment decisions and can be integrated into investment decisions without sacrificing investment returns. We also believe there is a significant financial risk in ignoring some ESG factors such as Climate Action.
All of our external managers have ESG integrated into their investment process. We can have a positive impact on the sustainability of the world while still carrying out our fiduciary duty and acting in the best interest of members.
What is Energy Super doing?
We consider responsible investment under a Shared Value Framework. This framework is defined as a way of conducting business which aims to profitably solve social issues rather than either via traditional philanthropy, or a one-way transactional donation. We want to contribute to society as well as improve returns for members.
At Energy Super we have a dedicated ESG resource within our investment team, Fiona Mann. Fiona comes with over 15 years investment experience and has a passion for ESG. Fiona will be responsible for driving ESG integration within Energy Super from an investment and corporate perspective, and developing and implementing our Shared Value Framework across the business.
How are we doing this?
We have several pillars that we are focused on to provide our members with the knowledge that we are building an investment strategy that is sustainable for the long-term:
- ESG integration – All investment managers apply an ESG lens to investing on behalf of members. This is about ensuring that the ESG factors are considered and managed and integrated into investment process and investments made.
- Socially responsible investment (SRI) – our SRI option has been reinvigorated, offering a ‘values’ based offering for members. This product actively remove sectors that are not considered socially responsible (e.g. alcohol, gambling, fossil fuels, weapons, palm oil, tobacco) from its Australian and International Shares – click here to find out more.
Our investment areas are focused on socially responsible investments here are some great examples:
European Diversified Infrastructure Fund (EDIF): An investment in an infrastructure fund with assets in renewable energy specifically in wind and solar in Portugal and waste to energy in the UK.
QIC Global Infrastructure Fund (QGIF): Is an infrastructure fund who has an investment in PoWAR (Powering Australia Renewables) a renewable energy investment vehicle designed to drive development of large-scale renewable energy projects across Australia. PoWAR is a strategic partnership that is the first of its kind, and since its establishment, has successfully invested in four assets (solar and wind) with a total capacity of 808MW. It is now the largest wind and solar generator in the Australian market.
QIC Property Fund (QPF): A property fund primarily invested in shopping centres. These centres have implemented a number of initiatives (water management, waste management, climate risk) across various shopping centres to improve their environmental footprint. For example, Robina Town Centre has solar panels and is operating on renewable energy, has initiatives in place to ensure water waste is protecting waterways and has bees on the roof! Not just for the honey but the biodiversity.
Pearl Global: This local Queensland based business utilises proprietary technology and processes to recycle tyres into a number of products as well as producing energy in the process. Their process allows tyres to be broken down into four main components – oil, carbon, steel and gas. Each component can then be sold off to end markets or used in the recycling process.
We’re here to help
Or call our friendly team on 1300 436 374 for more information, we’re available from 8am to 6pm, Monday to Friday (excluding national public holidays).