Responsible Investment

We integrate ESG considerations into investment decisions and undertake stewardship activities to support long-term outcomes.

Funds SA defines responsible investment as a financial outcomes focused approach that complements traditional investment analysis through Environmental, Social and Governance (ESG) integration and stewardship.

As part of investment due diligence process, Funds SA explicitly considers ESG issues and opportunities in investment analysis and decision making, through the activities of our external managers and across our total portfolio. Funds SA requires investment managers to provide information on their ESG processes to establish how each investment manager:

  • incorporates the assessment of ESG risks into due diligence activities,
  • integrates ESG considerations into investment decision making, and
  • monitors ESG risks within the portfolio.

Investment Stewardship is the responsible oversight and management of investments. It is an important component of Funds SA’s approach to responsible investment and focuses on Funds SA’s responsibility to take actions that protect and create long-term value for its clients. Funds SA does this through various means including proxy voting, engagements, and class actions.

Our Responsible Investment Policy outlines how our responsible investment program is implemented in line with the objectives of the Superannuation Funds Management Corporation of South Australian Act 1995. Funds SA is also a signatory to the UN-supported Principles for Responsible Investment.

Funds SA Responsible Investment Policy

Climate Change

Funds SA recognises that climate change presents a systemic risk impacting potential investment returns over the coming decades. In 2021, we published our Climate Change Position Statement that outlines our approach to addressing climate change risks in line with the objectives of the Superannuation Funds Management Corporation of South Australia Act 1995.

Funds SA Climate Change Position Statement

Our approach to climate change risk will evolve as science, policy, and investment markets develop a greater understanding of climate resilient investment portfolios. We have developed a Climate Risk Response Plan, in which we outline the initial actions we will take to meet our goal of managing the long-term financial risks, the opportunities of climate change, and the transition of our portfolio towards Net Zero Emissions by 2050.

To achieve our commitment to Net Zero by 2050, we will take action across our 5-Pillar Climate Risk Response Plan Framework to support a 45% reduction in global emissions by 2030, consistent with the goals of the Paris Agreement.

Funds SA Climate Risk Response Plan

Socially Responsible Investment Option

In our Socially Responsible investment option, underlying investment managers actively incorporate the consideration of ESG factors in their investment decisions. The option invests in line with socially responsible investment criteria established by Funds SA, which includes a focus on renewable energy and social infrastructure, restrictions on investments in areas of high negative social impact and a ‘best-in-class’ approach to target the best companies in each economic sector according to external ESG ratings. The strategy is implemented by engaging external investment managers to provide investors with exposure to a portfolio of diversified asset classes, with an emphasis on growth assets (such as shares and property).

The investment managers within this investment option include:

Asset classInvestment manager
Cash
Funds SA - Cash
Fixed Interest
Funds SA - Fixed Interest
Property
Funds SA - Property
AMP Capital Ethical Leaders Private Assets Fund
Australian Equities
DWS
International Equities
DWS
Diversified Strategies Growth
AMP Capital Ethical Leaders Private Assets Fund
AMP Capital Community Infrastructure Fund
Palisade Renewable Energy Fund
LGT Capital Partners

To view investment managers within Funds SA asset classes, click here.