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 Principals for Responsible Investment (UNPRI) 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.
The United Nations Principals for Responsible Investment (UNPRI)
Signing up to the UNPRI is an important part of our commitment to investing responsibly.
The principles were developed to provide a framework for the investment community to achieve better long-term returns and more sustainable markets by considering environmental, social and corporate governance issues in their investment decision making.
Visit United Nations Principals for Responsible Investment for more information.
Australian Council of Superannuation Investors
Cbus is a Founding Member of the Australian Council of Superannuation Investors (ACSI), the peak corporate governance body for institutional investors in Australia.
ACSI provides independent research and advice to superannuation funds on the environmental, social and corporate governance risk of companies in which they invest.
Cbus subscribes to ACSI's proxy voting service. Visit the Australian Council of Superannuation Investors for more information.
Investor Group on Climate Change
Cbus is a member and is also on the executive of the Investor Group on Climate Change.
The Investor Group on Climate Change aims to ensure that the risks and opportunities associated with climate change are incorporated into investment decisions for the ultimate benefit of members.
Visit the Investor Group on Climate Change for more information.
Carbon Disclosure Project
Cbus is a signatory to the Carbon Disclosure Project. This is a global project that asks top companies around the world to report information on their carbon emissions.
This information helps investors to assess whether companies have a good understanding of their potential liabilities once regulation to reduce carbon emissions is introduced.
Visit the Carbon Disclosure Project for more information.
ESG Research Australia
Cbus is a member and also on the executive of ESG Research Australia.
This is an organisation that aims to increase the amount of research that brokers and financial analysts undertake on the ways that environmental, social and governance issues impact on the companies we invest in.
Visit ESG Research Australia for more information.