Company exclusions

In general, we believe corporate engagement is more effective than divestment in improving the way companies operate, reducing their environmental impact and increasing transparency. However, we apply some company exclusions when investing.

Vision Super only excludes listed companies where we don’t believe engagement can reduce harm, or where we believe there is a long-term risk to our members’ money. Our company exclusions are for tobacco/vaping products and controversial weapons based on information from our ESG service provider. These exclusions are outlined below. Our exposure to fossil fuels in our listed equities portfolio is managed through carbon intensity limits under our carbon budget framework. For further information please refer to our Carbon budget page.

Exclusions framework

Vision Super has an exclusions framework that the Board uses to ensure we make decisions about whether to exclude particular companies in a consistent way, and that doing so is in the long-term financial interests of our members.

As part of this framework, the Board will:

1

Clearly define what is being proposed for exclusion.

2
Assess materiality including impact on portfolio performance and sequencing risk.
3

Define why the category of assets is being proposed for exclusion. This will take into account the values of the Fund.

4
Assess the practicality of excluding these investments from the Fund.
5
Determine under what circumstances the Fund would stop excluding a category of investments and what would need to change.

Excluded security list

Vision Super maintains a list of companies that we consider to be prohibited investments. The list is reviewed regularly by the Vision Super ESG Working Group and Investments team. Using the methodology and definitions of our ESG data provider MSCI we have identified companies that are involved in controversial weapons production and the production of tobacco and vaping products. The list is reviewed at least annually and where new companies are identified for exclusion we seek to divest our holdings within a reasonable timeframe.