• Investing responsibly
    Investing responsibly

    We are committed to investing our members’ retirement savings responsibly so that we generate long-term value and work to provide our members with peace of mind and financial security in retirement.

    VicSuper’s 2020 Responsible Investment Strategy aims to build on what we’ve already achieved. It also helps us to demonstrate that we are a responsible corporate citizen and will ensure that the Fund continues to manage emerging environmental, social and governance (ESG) risks and capture innovative opportunities into the future.

    Our responsible investment beliefs sit at the heart of this strategy and are set out in our Responsible Investment Policy (PDF). They are supported by our responsible investment approach which is based on four pillars: ESG integration, Active ownership, Investing in sustainable outcomes and Member Choice.

    VicSuper’s Responsible Investment Strategy

    Responsible investment circle

    ESG integration

    To protect the long term value of our members’ retirement savings we integrate ESG factors into our investment decisions. ESG integration is the systematic and explicit inclusion of environmental, social and governance factors or issues into traditional investment analysis. It requires our investment managers to consider qualitative and quantitative ESG information to inform their economic and industry analysis. Our managers also undertake analysis and engage with companies to better understand how ESG issues may impact on a company’s or an asset’s financial value, costs, revenues and business growth assumptions. Ultimately we believe there is value in integrating ESG factors into investment processes as it enhances investment decision-making.

    Engaging for positive change

    Our objectives
    We have a clearly defined set of objectives for engaging for positive change. These objectives help us to focus on the issues that are most important to us and our stakeholders. They also inform our company engagement, proxy voting, industry collaboration activities and public policy advocacy. Each year we report on how we are progressing against our objectives in our Annual Report.

    Investment strategy table


    Active Ownership
    As a shareholder in thousands of Australian and global organisations we take our ownership responsibilities seriously. As an active owner we vote at company meetings and engage with the companies we invest in to influence improvements in their corporate governance practices and how they manage social and environmental risks. While we made a decision to divest from tobacco production a few years ago, our preference is to engage with the companies we invest in to help them transition towards more sustainable business models. This approach takes more time and effort, but we firmly believe that engagement drives real and tangible change on the issues that are important to us and our members. As companies get better at managing and understanding their risks, they’re better equipped to tackle future challenges and adapt to change. We also believe they can become more valuable.

    Read VicSuper’s Engagement and Proxy Voting Policy (PDF) and find out more about our company engagement and proxy voting activity.

    Industry collaboration
    As a universal investor who invests globally across a range of different sectors and assets, we also have a vested interest in the long term sustainability and stability of the real world economy. We are a signatory to a number of investor organisations and through these organisations we collaborate on large scale social and environmental change initiatives that are aligned with our objectives. Each year we provide an update on these collaborative initiatives in our Annual Report. Find out more about the signatory and membership organisations we belong to.

    Investing in sustainable outcomes

    Climate change
    VicSuper’s 2020 Climate Change and Investments Strategy aims to build on what we’ve already achieved. The Strategy is designed to help us to manage climate risk over the short, medium and long term and capture innovative opportunities into the future. Find out more about our climate change strategy and commitments.

    Socially conscious investing
    Our Socially Conscious investment option gives our members the opportunity to align their superannuation savings with their social and environmental values. It helps our members avoid investing in companies that contribute to climate change, potentially cause social harm or damage human rights, labour rights or the environment. Find out more about the environmental and social objectives, underlying investment methodology, and features of VicSuper’s Socially Conscious investment option.

    Tobacco
    In April 2013, VicSuper’s Board resolved to divest the Fund of tobacco manufacturing stocks1. The Board made this decision by weighing up the potential gains and risks for members, their superannuation holdings and the broader community, both now and in the long term.

    To further strengthen this commitment VicSuper has also formally become a supporter of the Tobacco Free Portfolio initiative. This initiative aims to inform, prioritise and advance tobacco free investment by eliminating tobacco from investment portfolios across the globe.

    Tobacco free supporter badge
    Find out more about Tobacco Free Portfolios.

    1 Where VicSuper invests in pooled trusts this divestment will be on a best endeavours basis, due to cost and implementation difficulties.

    We are committed to investing our members’ retirement savings responsibly so that we generate long-term value and work to provide our members with peace of mind and financial security in retirement.

    VicSuper’s 2020 Responsible Investment Strategy aims to build on what we’ve already achieved. It also helps us to demonstrate that we are a responsible corporate citizen and will ensure that the Fund continues to manage emerging environmental, social and governance (ESG) risks and capture innovative opportunities into the future.

    Our responsible investment beliefs sit at the heart of this strategy and are set out in our Responsible Investment Policy (PDF). They are supported by our responsible investment approach which is based on four pillars: ESG integration, Active ownership, Investing in sustainable outcomes and Member Choice.

    ESG integration

    To protect the long term value of our members’ retirement savings we integrate ESG factors into our investment decisions. ESG integration is the systematic and explicit inclusion of environmental, social and governance factors or issues into traditional investment analysis. It requires our investment managers to consider qualitative and quantitative ESG information to inform their economic and industry analysis. Our managers also undertake analysis and engage with companies to better understand how ESG issues may impact on a company’s or an asset’s financial value, costs, revenues and business growth assumptions. Ultimately we believe there is value in integrating ESG factors into investment processes as it enhances investment decision-making.

    Engaging for positive change

    Our objectives
    We have a clearly defined set of objectives for engaging for positive change. These objectives help us to focus on the issues that are most important to us and our stakeholders. They also inform our company engagement, proxy voting, industry collaboration activities and public policy advocacy. Each year we report on how we are progressing against our objectives in our Annual Report.

     

    Active Ownership
    As a shareholder in thousands of Australian and global organisations we take our ownership responsibilities seriously. As an active owner we vote at company meetings and engage with the companies we invest in to influence improvements in their corporate governance practices and how they manage social and environmental risks. While we made a decision to divest from tobacco production a few years ago, our preference is to engage with the companies we invest in to help them transition towards more sustainable business models. This approach takes more time and effort, but we firmly believe that engagement drives real and tangible change on the issues that are important to us and our members. As companies get better at managing and understanding their risks, they’re better equipped to tackle future challenges and adapt to change. We also believe they can become more valuable.

    Read VicSuper’s Engagement and Proxy Voting Policy (PDF) and find out more about our company engagement and proxy voting activity.

    Industry collaboration
    As a universal investor who invests globally across a range of different sectors and assets, we also have a vested interest in the long term sustainability and stability of the real world economy. We are a signatory to a number of investor organisations and through these organisations we collaborate on large scale social and environmental change initiatives that are aligned with our objectives. Each year we provide an update on these collaborative initiatives in our Annual Report. Find out more about the signatory and membership organisations we belong to.

    Investing in sustainable outcomes

    Climate change
    VicSuper’s 2020 Climate Change and Investments Strategy aims to build on what we’ve already achieved. The Strategy is designed to help us to manage climate risk over the short, medium and long term and capture innovative opportunities into the future. Find out more about our climate change strategy and commitments.

    Socially conscious investing
    Our Socially Conscious investment option gives our members the opportunity to align their superannuation savings with their social and environmental values. It helps our members avoid investing in companies that contribute to climate change, potentially cause social harm or damage human rights, labour rights or the environment. Find out more about the environmental and social objectives, underlying investment methodology, and features of VicSuper’s Socially Conscious investment option.

    Tobacco
    In April 2013, VicSuper’s Board resolved to divest the Fund of tobacco manufacturing stocks1. The Board made this decision by weighing up the potential gains and risks for members, their superannuation holdings and the broader community, both now and in the long term.

    To further strengthen this commitment VicSuper has also formally become a supporter of the Tobacco Free Portfolio initiative. This initiative aims to inform, prioritise and advance tobacco free investment by eliminating tobacco from investment portfolios across the globe.

    Find out more about Tobacco Free Portfolios.

    1 Where VicSuper invests in pooled trusts this divestment will be on a best endeavours basis, due to cost and implementation difficulties.