VicSuper Socially Conscious Investment Option

Product Name

VicSuper Socially Conscious Investment Option

Issuer

VicSuper

Category

Superannuation or KiwiSaver product

Type

Superfund option

Target

Retail

Certified Since

2016

Certification Symbol

SRI

Asset Classes

Diversified / Balanced

Markets

Australia

Investment Approaches

Negative Screening, ESG Integration

It Includes

  • Default selected inclusion No specific inclusions

It Excludes

  • Riaa icons 33 Fossil fuels
  • Riaa icons 35 Tobacco
  • Riaa icons 50 Nuclear energy (including uranium)
  • Riaa icons 52 Human rights violations
  • Riaa icons 38 Labour rights violations
  • Riaa icons 36 Armaments
  • Riaa icons 41 Alcohol
  • Riaa icons 42 Gambling
  • Riaa icons 55 Pornography
  • Riaa icons 45 Genetic engineering

Overview

Our Socially Conscious investment Option gives our members the opportunity to align their super savings with their social and environmental values. The Socially Conscious investment option applies a number of exclusionary screens when selecting companies for investment. These exclusionary screens only apply to the Australian and international equities components of the investment option. Investments across the other asset classes apply an ESG integration strategy, with the exception of cash.


Description


VicSuper’s Socially Conscious investment option is what’s known as a socially responsible investment option. It provides our members with the opportunity to invest their super savings in alignment with their social and environmental values. And there’s no compromise for you personally as 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.

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 or whose principal business revenue is derived from direct fossil fuel activities;

  • 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, pornography and genetically modified organisms; and

  • 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.

After applying the exclusions listed above, a best‐in‐class selection process is applied to the remaining companies in the equities universe.

The equities component of VicSuper’s Socially Conscious investment option invests in companies sourced from a custom index designed for VicSuper. An ESG integration approach is applied to investments across other asset classes (alternatives, fixed interest and real assets). No special considerations are applied to cash.

The custom index combines the MSCI Global Fossil Fuels Exclusion Index and the MSCI Global Socially Responsible Index plus an additional fossil fuel direct activity screen. 

The MSCI Global ex Fossil Fuels Index excludes companies that have proved and probable coal reserves and/or oil and natural gas reserves used for energy purposes. 

In addition to the fossil fuel reserves exclusion, the option also excludes companies that operate in the following GICS sub-sectors: Integrated Oil & Gas; Oil & Gas Exploration & Production; Oil & Gas Refining & Marketing; Coal & Consumable Fuels; Oil & Gas Storage & Transportation; Oil & Gas Equipment & Services.

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