VicSuper's investment approach takes into account more than just investment in best-of-sector companies, it also requires active company engagement and proxy voting. In addition to best-of-sector screening, exercising these shareholder rights and responsibilities is part of the VicSuper philosophy of integrating sustainability into our investing.
VicSuper has been a signatory of the Principles for Responsible Investment (PRI) since 2006. These are a set of principles to guide the implementation of responsible investment. Signing up to the Principles is just another way that we're cementing our commitment to sustainability. Since 2007, VicSuper has voluntarily completed annual surveys measuring our performance against the PRI and relative to our peers.
As a part-owner of companies we also have the opportunity to collaborate and share knowledge with other institutional investors on major investment related risks and opportunities such as climate change, corporate governance and business ethics.
VicSuper continues its commitment to collaborative engagement initiatives including the Carbon Disclosure Project (CDP), the Forest Footprint Disclosure (FFD) Project, the Natural Value Initiative (NVI), and the CDP Water Disclosure Project.
Since 2004, VicSuper has been a signatory to the Carbon Disclosure Project, which seeks company disclosure of investment relevant information about climate change management strategies.
VicSuper has been a signatory of the FFD since 2009. The Forest Footprint Disclosure Project was created to help investors identify how an organisation's activities and supply chains contribute to tropical deforestation, and link this 'forest footprint' to their value. It is a UK government-supported initiative that is modelled on the CDP, aiming to create transparency, promote awareness of investors' reliance on ecosystem services and seek ways to monetise the risk and opportunity presented by companies' cash flows from forest ecosystems.
Similar to the CDP, participating companies are asked through a questionnaire to disclose how their operations and supply chains are impacting forests worldwide, and what is being done to manage those impacts responsibly. The disclosure information is reported annually.
VicSuper continues its participation in the Natural Value Initiative commenced in 2009. The NVI is a collaboration between Fauna & Flora International and the UNEP FI to evaluate and benchmark the status of biodiversity and ecosystem services risk and opportunity management in listed companies.
VicSuper became a signatory to the CDP Water Disclosure Project in early 2010. This initiative is a new program for institutional investors modelled on the CDP framework. It aims to enable investors to better understand the business risks and opportunities associated with water scarcity and other water-related investment drivers by increasing the public availability of high quality data and information on this issue. VicSuper continued as an active member of the IGCC, attending regular meetings and providing input into research and advocacy on investor-related climate change issues. The IGCC now represents 61 institutions with approximately A$700 billion in assets under management.
VicSuper participated in the Global Investor Survey, which formed part of the Global Investor Survey on Climate Change 2011 Annual Report. This is the second global survey of investment practices, of asset owner and asset managers, coordinated by the three investor networks on climate change - the IIGCC, based in Europe, INCR, based in North America and the Australia/New Zealand IGCC. The report provides an overview of the leading investment practices around the world on climate change and analyses the drivers for those practices.
- VicSuper's response to the 2011 questionnaire (1.19MB)
- Read the report with the findings of the 2011 survey (49KB)
VicSuper Fund is a founding shareholder of Regnan Governance Research & Engagement. Regnan aims to identify and assess sustainability and corporate governance risks to long-term shareholder value in listed Australian companies. As a founding member and shareholder, VicSuper encourages other investment funds to join Regnan.