Our trustee believes the integration of sustainable investing concepts, sometimes referred to as environmental, social and governance (ESG) factors, to have an influence on the long-term investment outcomes of the fund. We therefore consider these factors when determining the fund’s investment strategy.

As the trustee outsources the implementation of its investment strategy to external investment managers, it is expected that each investment manager will have regard for ESG factors, if they believe they will have a meaningful impact on investment performance.

Each investment manager may have its own policy on the extent to which labour standards or environmental, social and ethical issues are taken into account when making investment decisions. The policies of each individual manager are considered when selecting managers and monitoring their management of ESG factors and risks.

Investment exclusions

When considering the fund’s investment strategy, the trustee has determined that it will not invest in (i.e. apply a negative screen to) companies whose primary purpose is tobacco manufacturing or production of controversial weapons, based on the trustee’s agreed screening application.

The trustee’s decision not to invest in these companies is for both financial and social reasons. These exclusions apply to the fund’s direct holdings in listed shares and fixed interest portfolios. For indirect holdings, such as derivatives, unit trusts and structures like exchange traded funds, the trustee does not maintain the same degree of control over individual investments, therefore these exclusions may not apply to these investments.

Climate change position statement

*The following Climate Change Position Statement was reviewed and approved by the Trustee Board in October 2017.

Commonwealth Bank Group Super accepts the scientific consensus that climate change is occurring and that it is expected to have an impact on members’ superannuation as the regulatory, environmental, economic and social impacts of climate change grow over time.

We believe we have a part to play in limiting climate change to below two degrees Celsius in line with the Paris Agreement, and support the global transition to net zero emissions by 2050.

We believe climate change and the transition to a low carbon global economy will lead to both risks and opportunities in relation to the fund’s investments. We will build our understanding and capability of climate change implications in relation to the fund’s investments to ensure we manage the associated risks and opportunities.

To play our role in addressing climate change, we aim to:

  • integrate climate change risks and opportunities into our investment decision-making
  • integrate climate change into the management of our investment partners, including investment managers and consultants
  • measure and monitor portfolio exposures including carbon emissions from our investments and analyse scenarios and stress test our investment portfolio resilience
  • participate in public reporting such as the Asset Owners' Disclosure Project
  • commit towards keeping members informed and enhance our disclosure regarding climate change.