VicSuper Socially Conscious Investment Option

Product Name

VicSuper Socially Conscious Investment Option

Issuer

VicSuper

Category

Superannuation

Type

Superfund/Pension

Target

Retail

Certified Since

2016

Asset Classes

Diversified / Multi-asset

Markets

Australia

Investment Approaches

Negative Screening, ESG Integration

It Includes:

    It has some level of screening for:

    • Riaa icons 41 Alcohol
    • Riaa icons 36 Armaments
    • Riaa icons 33 Fossil fuels
    • Riaa icons 42 Gambling
    • Riaa icons 45 Genetic engineering
    • Riaa icons 50 Nuclear power
    • Riaa icons 99 Pornography
    • Riaa icons 35 Tobacco

    It fully excludes:

    • Riaa icons 52 Human rights abuses

    Overview

    Our Socially Conscious investment option gives our members the opportunity to align the way their super savings are invested with their social and environmental values. If you’d like to take action on climate change, minimise social harm and protect human rights, labour rights and the environment, this could be the investment option for you. The fees are comparable to a typical Balanced investment option, and you still have access to all the benefits and services of a large super fund. VicSuper’s Socially Conscious investment option incorporates a wide range of explicit social and environmental objectives. The Socially Conscious investment option aims to help our members: • take action on climate change by not investing in companies that hold fossil fuel reserves used for energy purposes; • minimise social harm by not investing in companies that are materially involved in activities that potentially cause social harm, for example tobacco production, alcohol, gambling, military weapons, civilian firearms, nuclear power, adult entertainment and genetically modified organisms; • protect human rights, labour rights and the environment by not investing in companies that have been involved in severe incidents and/or controversies, or have been found to not be adhering to widely accepted global conventions.


    Description


    The objectives are achieved by applying a number of exclusionary screens when selecting companies for investment. These exclusionary screens only apply to the equities and fixed interest components of the investment option. We may introduce additional screenings in the future. Investments across the other asset classes apply an environment, social and governance (ESG) integration approach, with the exception of Cash, which is not subject to ESG integration.

    Take action on climate change
    Excludes investment in companies:
    • with coal, oil and/or gas reserves used for energy purposes.
    • deriving 5% or more revenue from mining of thermal coal or thermal coal based power generation.
    • whose principal business revenue is derived from direct fossil fuel activity in the following GICS sub-industries: Integrated Oil & Gas; Oil & Gas Exploration & Production; Oil & Gas Refining & Marketing; Coal & Consumable Fuels; Oil & Gas Storage & Transportation; Oil & Gas Drilling; Oil& Gas Equipment & Services
    Minimalise social harm
    Excludes investment in companies materially involved in:
    • Tobacco
    • Alcohol
    • Gambling
    • Civilian Firearms
    • Military Weapons (cluster munitions, landmines, depleted uranium, biological/chemical, nuclear, conventional)
    • Nuclear Power
    • Adult Entertainment
    • Genetically Modified Organisms 


    Protect human and labour rights and the environment
    Excludes companies that have been involved in significant ESG controversies, or are predicted to have a high risk of being involved in such incidents in future. Controversies include incidents pertaining to society and the community, employees, the environment, business ethics, and the operations, products, and services of the company.

    The fixed interest component of VicSuper’s Socially Conscious investment option invests in a range of securities. For Australian fixed interest, where the option invests in company issued securities, VicSuper is invested in an ESG Australian bond index fund. For international fixed interest, VicSuper is invested in an ESG Global bond index fund. Both funds implement customised indices. The ESG Australian bond index fund uses a Bloomberg Barclays MSCI Australia 100mn ESG weighted SRI Select Index. The ESG Global bond index fund uses a Bloomberg Barclays MSCI Global Aggregate SRI Select ex-Fossil Fuels Index (AUD hedged). Both apply very similar exclusions those applied to equities investment including non-government securities associated with fossil fuels, alcohol, tobacco, gambling, adult entertainment, genetically modified organisms, military weapons, civilian firearms and nuclear power, as well as companies with an MSCI controversies score of 0. In addition, the ESG Global bond index fund excludes Treasury and Government-related issuers with an MSCI ESG Government rating below BB.


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