We have a legal and fiduciary obligation to our members to aim to maximise their financial outcomes within the constraints applicable to each investment option.
Investment and divestment decisions are based on judgements on the financial sustainability of an asset. However, this decision-making process involves a robust investment analysis, and takes into account the financial implications of a range of factors including environmental and social considerations. For example, we’ve decided not to invest in companies considered manufacturers of cigarettes and tobacco products for any of our investment options due to the financial risks those businesses face.
We understand some members would like options that specifically screen out certain sectors. The Sustainable Balanced and Sustainable High Growth options screen out companies with material exposure to fossil fuel exploration and production, alcohol, gambling, weapons and tobacco.
Because it only invests in companies with a specific focus, the Global Environmental Opportunities option doesn’t have exposure to companies involved in tobacco, alcohol, gambling, weapons or fossil fuel exploration and production.
The screening parameters were decided after reviewing industry practices and norms and consulting various parties including knowledgeable members who are passionate about these issues.
See the ‘Responsible investing’ section of our website or read our Chief Investment Officer’s commentary on UniSuper's divestment approach for more detailed information.