We believe that competitive returns and responsible investment can go hand in hand. We seek to optimise members’ retirement savings and incomes in a manner consistent with responsible investment principles.
As a long-term investor, we have a vested interest in the sustainability of the global economy. Ultimately, if our members’ retirement savings are to prosper and grow, the economy, society and the environment need to be healthy and productive. The welfare of our members is also influenced by the state of the environment and society in which they live and retire. As a result, other things being equal, we favour investments which contribute to positive environmental and social outcomes, and avoid investments which have the opposite impact.
We have set ourselves an ambitious target of having $3 billion in investments that contribute to sustainable outcomes by mid-2020. We’ve already made substantial progress towards the goal, and case studies on some of our investments are shown below. For each of these investments we are working to measure the impact of investments, not just through dollars but outcomes.
We are also committed to investing in Victoria and helping to address a range of local social issues. As a result we have committed to investing $100 million in impact investment through our Alternatives portfolio. (Impact investment is investment that intentionally seeks to deliver measurable social and/or environmental outcomes in addition to financial returns.) In doing so we are intentionally seeking to deliver positive outcomes for the Victorian community through private markets, allowing us to make an additional impact that would otherwise not have occurred.