ESG and responsible investing
We believe that companies that act in a responsible way will perform better over the longer-term.
Because your super is a long-term investment, it makes sense for us, and our investment managers, to consider environmental, social and corporate governance (ESG) issues before we invest in a company.
We consider these issues alongside traditional financial factors when we make investment decisions.
Examples of ESG issues are:
- Environment - climate change (physical implications, emissions trading scheme), water usage, pollution
- Social - labour relations, workplace health and safety practices, community relations
- Governance - board structure and skills, board and executive pay, company transparency and accountability.
Integration of ESG in the investment process
The integration of ESG in the investment process does not mean the exclusion of particular companies on ethical grounds. Instead, integration of ESG requires that the impact of any ESG issues on the value of a company is included in the valuation process.
As part of our ESG responsibilities, Cbus actively engages with companies through voting at their Annual General Meetings and meeting with them to discuss particular issues.
Cbus is part of a broader movement of superannuation funds and fund managers focusing on ESG issues. We are a signatory to the United Nations supported Principals for Responsible Investment (PRI) and the Carbon Disclosure Project.
We are a member of the Australian Council of Superannuation Investors, the Investor Group on Climate Change and ESG Research Australia.
Find out more about the Fund's membership and collaboration on various ESG initiatives.