Why responsible investing is important
We believe companies that are well-governed and manage Material1 environmental, social and governance (ESG) risks and opportunities in their operations and supply chains, such as those that impact employees, suppliers, customers, communities and the environment, will protect assets and grow our members’ retirement savings over the long term.
The basics of responsible investing
Watch our short video to learn more about how we approach responsible investing.
Read transcript
At CBUS Super, our responsible investment approach is part of our investment strategy. We aim to consider environmental, social, and governance risks and opportunities that could affect investment performance as one input in the investment decision-making process. We call these Material ESG risks and opportunities.
These risks and opportunities will be different for every investment. They can include environmental.
This is about considering how a company's impact on the environment may affect their performance and includes things like the effects of climate change. We also consider how we are investing in the energy transition.
Social. This is about how a company treats its employees, suppliers, customers, and communities and includes things like modern slavery risks and workplace health and safety. Governance.
This is about how a company is run and includes things like management practices, executive remuneration, and shareholder rights. Our focus also aims to reduce the impacts of climate change and invest in opportunities, identify modern slavery risks, and help improve workplace health and safety practices.
When investing in sustainable buildings through Cbus property, investing in renewable energy like solar or wind farms, or working to improve safety practices, our aim is to help grow our members retirement savings over the long term. And we've been recognized for our responsible investing approach.
Visit our website to learn more about how we invest and about our awards and ratings.
Our approach
At CBUS, responsible investment means considering Material ESG risks and opportunities as one input in the investment decision making process (integration), using active stewardship (voting and engagement) to protect and preserve value for our members, and playing a role in shaping the systems we operate and invest in, through policy and regulatory advocacy.
Our Responsible Investment Policy (PDF) applies across most of the Fund’s investment portfolio; it doesn’t apply to certain investments, including cash and cash-like investments, derivatives, securities lending and any similar financing arrangements, and overlays.2 How we apply this approach varies by investment strategy, asset class and whether investments are managed internally or externally through a mandate or pooled vehicle. Our approach is designed to evolve over time as risks, markets and regulatory expectations change.
We are guided by the Board Governance Framework.
Through integration
ESG integration is the inclusion of Material ESG risks and opportunities into investment analysis as one input into investment decision-making.
Given the diverse nature of investing, there are several ways to incorporate the consideration of Material ESG risks and opportunities into investment analysis. Consistent with this, we adopt a nuanced approach to ESG integration, which varies depending on the nature of the investment and the relevant investment strategy.
Read about our approach to integration.
Through stewardship
We use stewardship, which is informed voting, purposeful engagement with companies and advocacy on policy settings that may shape the systems we operate and invest in, to help protect assets and grow our members’ retirement savings.
Read about our stewardship activities.
We partner
We recognise that partnership and collaboration help us share knowledge and learnings. It also helps manage resources more effectively and respond to systemic risks that may affect our portfolio.
Read about our partners and how we work with them.
Our approach to climate change
We believe that climate change is one of the most significant challenges facing society today.
Read more about our work on climate change.
We share our approach with members
1 Material ESG risks and opportunities are those that are likely to affect business or investment performance.
2 For details on what these terms mean, see section 1.1 of our Responsible Investment Policy (PDF).