Carbon Intensity and Divestments
Recently the focus towards holding companies responsible for their actions environmentally has gained momentum, resulting in an increase in sustainable investments.
Vision Super’s approach to carbon intensity and divestments is informed by the peer reviewed scientific evidence in this area. While we’re not experts on climate science, we are happy to report that our Australian equites investment option weighted CO2 intensity for aggregated managers was 6.7% lower than the benchmark, and our international equities weighted CO2 intensity for aggregated managers was 49.7% lower than the industry benchmark.
Investing in line with community values is not a new initiative for Vision Super. In 2015 the decision was made not to invest in companies that derive material revenue from controversial weapons. And in 2018, the Vision Super Board also determined that in keeping with Fund’s community values, not to invest in companies that derive material revenue from the mining of thermal coal, tar sands or tobacco manufacturers.
Vision Super believes it is important to vote, on behalf of our members, on all our shares to protect their interests. We take advice on voting, but we do not outsource this important task to other parties.
The Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry findings were at the forefront of our voting recommendations in the second half of 2018 Australian proxy season. Vision Super remained vigilant during this period and evaluated proposals, especially about remuneration on a case by case basis. And over this time, we commenced disclosing our voting cards more frequently for all our equity shareholdings. Voting can be located at the following link on our website: visionsuper.com.au/investments/active-ownership
Other Collaborative Initiatives
Vision Super joined the PRI Collaborative Engagement on Corporate Tax Responsibility with the objective of encouraging companies to extend their public tax reporting to segmentation by jurisdiction to ensure they are paying their fair share of tax.
Vision Super is a support investor to the Climate Action 100+ initiative which will be conducted over a 5-year period. The initiative aims to secure commitments from boards and senior management of companies to improve governance of climate-related risk and opportunity, develop a credible transition plan to curb emissions in line with the Paris Agreement and strengthen climate-related financial disclosures.
Our aim is to help every member achieve a comfortable and financially secure life in retirement through consistent investment performance. Please note that superannuation is a long-term investment and we cannot guarantee investment returns as markets can be volatile and as such, returns can be positive or negative. Past investment performance is not a reliable indicator of future performance.