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 our 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.
Our Responsible Investment Policy
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 (SA). 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.
Climate Transition Plan
Climate change presents significant long-term risks and opportunities for investors. Funds SA’s Climate Transition Plan for our Investment Portfolio is an interim plan to 2030, outlining how we will manage climate-related risks, support real-world emissions reductions and strengthen portfolio resilience, while continuing to focus on delivering long-term investment outcomes for our clients.
The Plan sets out the actions and measures that will support our ambition to achieve net zero financed emissions by 2050. It also provides a framework to monitor progress and guide the portfolio’s transition over time. The Plan replaces our inaugural Climate Risk Response Plan.
Human Rights and Modern Slavery
Funds SA recognises that modern slavery has severe consequences for victims. It may also impact the value of implicated companies.
While Funds SA is not a reporting entity under the Commonwealth Modern Slavery Act 2018, we see it as critical to incorporate modern slavery risk considerations into investment decision making.
Our Human Rights and Modern Slavery Position Statement outlines how we are addressing human rights and modern slavery risks in line with the objectives of the Superannuation Funds Management Corporation of South Australia Act 1995.
Funds SA Human Rights and Modern Slavery Position Statement
The reporting process for an incident of human rights issues, including modern slavery case allegations, is detailed in Funds SA’s Complaint Handling Policy.
Climate Report
The Funds SA Climate Report is an annual report, created in alignment with the Taskforce on Climate-related Financial Disclosures (TCFD) framework. The Report presents our progress against the actions outlined within the Climate Risk Response Plan, Phase 1 and highlights the work undertaken in response to climate risk in our investment portfolio.
Our Stewardship
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 Collaboration
We recognise the importance of a robust and transparent approach to Responsible Investment, which is why we value our membership with the UN-supported Principles for Responsible Investment and the Global Real Estate Sustainability Benchmark.
Our SRI Option
The Socially Responsible Investment (SRI) 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.