Aware Super offers two investment options for members who want greater certainty about the environmental, governance and social (ESG) impact of their investments.
Many people like to know that their super is invested according to socially responsible values. It's why we offer our members socially responsible investment (SRI) options that balance community accountability with strong long-term investment returns.
We offer two SRI options:
- a Diversified SRI option, and
- an Australian Equities SRI single asset class option.
How the SRI options are managed
Ourapproach integrates environmental, social and governance (ESG) considerations into our investment process for all of our investment options.
A key feature of the SRI investment options, however, is that they exclude investments considered to have a highly adverse environmental or social impact, as identified by our screening criteria.
This means that the investments for the SRI options are selected and managed according to extra, and more specific, restrictions and exclusions (i.e. "screens").
To manage the screening process, we’ve partnered with specialist external investment managers, that have a robust ESG framework in place for selecting, retaining and selling investments. This framework also seeks to give an increased allocation of the portfolio in these options to companies with better ESG practices.
We also manage a portion of the Diversified SRI option in house, using similar guiding principles. All investments are required to meet the rigorous screening criteria, in order to be considered for inclusion in the SRI options. The SRI screens are applicable to all asset classes within these options, albeit with some differences for the private equity asset class.
Note that the screening criteria does not apply to the use of derivatives which may have an indirect exposure to these types of investments. Additionally, on or after 1 December 2021, up to 5% of the private equity asset class may be invested in companies and other entities not meeting the screening criteria.
The investments within the SRI options are periodically reviewed to ensure they continue to meet the criteria for inclusion.
For more information on how we manage the SRI options please read the Member Booklet
Diversified SRI – a broad range of assets
In our Diversified SRI option, you have exposure to a broad range of asset classes, diversifying your exposure while still investing in assets that meet our screening criteria.
Our investments include:
What we rule out – ‘screens’
Our screens are broken down into three categories:
- Climate Change screens
- Ethical screens
- Conventions and controversies-based screens
In addition, the SRI options have Discretionary exclusions, where a company may be identified as being unsuitable for these options for factors outside the formal ‘screens’ criteria.
Climate change screens
- Coal-fired power generation
- Oil and gas (conventional / unconventional)
- Fossil fuel transportation
- Fossil fuel supply chain and services
- Fossil fuel reserves
- Nuclear power
- Civilian firearms
- Live animal exports
Conventions and controversies-based screens
The SRI options also seek to exclude companies consistently involved in severe incidents/corporate controversies, or that are at a high risk of being involved in serious incidents in the future.
Corporate controversies - companies consistently involved in severe incidents/corporate controversies, or that are at a high risk of being involved in serious incidents in the future.
Controversial weapons - including chemical weapons, cluster munitions, land mines and depleted uranium.
A company may be identified as being unsuitable for the SRI options for factors outside the formal criteria above at the discretion of the Aware Super Responsible Investment team.
A description of each exclusion and the exclusion threshold can be found in the Member Booklet Supplement: Investments (for super members), the (for Transition to Retirement Income Stream members) or the (for retirement income stream members).
Want to change your investment option?
You can invest all or part of your account balance and future contributions in either of these options by logging into youror completing the form below.
Super advice at no extra cost
Want to know what the right investment option is for you? Our superannuation advisers can help. They can also talk you through the basics of managing your super and help you get more out of your membership with us.
Simple advice is already included in the cost of your membership – so you don’t have to pay anything upfront.