Skip to Content
Book icon. read

More about our Sustainable Responsible Investment (SRI) option

Super can be used to invest in good to impact the sustainability of the planet and our quality of life. It’s not a quick fix, but like investing your super for long-term performance, you can also invest in making the world a better place over time.

What is responsible investing?

Responsible investing is an investment approach that takes environmental, social, governance (ESG) and ethical considerations into account. It ensures your investment decisions are more in line with your values and have the potential to create a positive impact on the society and world we live in. 

  • Who manages the SRI option?

    Currently, Pendal Institutional Limited is the appointed investment manager for the SRI option. This option invests in a cross-section of diversified assets with an emphasis on growth from socially responsible investments over the long term.

    Sustainable and ethical investment practices are incorporated by Pendal into the Australian and international shares and the Australian and international fixed interest and the alternative investments components of the SRI option. Exclusionary screens are not applied to property, government securities cash or derivatives.

  • What kinds of investments does the SRI option exclude?

    We will not purchase, and will divest from assets that do not meet the following investment screens (last updated 1 July 2024):

    Australian shares

    Will not invest in companies:

    • directly involved in extracting or exploring for coal, oil, and gas.
    • directly involved in manufacturing, owning, or operating gambling facilities, gaming services, or wagering.
    • involved in producing pornography.
    • involved in manufacturing or distributing controversial weapons, including cluster munitions, landmines, biological or chemical weapons, nuclear weapons, incendiary weapons, and white phosphorous weapons; or supplying goods or services specifically related to controversial weapons.
    • involved in manufacturing non-controversial weapons or armaments, including civilian firearms or military equipment.
    • involved in producing alcoholic beverages.
    • involved in producing tobacco, including e-cigarettes and inhalers.
    • supplying goods or services specifically related to the tobacco industry, such as packaging or promotion.
    • directly involved in animal testing for cosmetic products.
    • directly involved in live animal export.
    • directly providing products or services with unfair or deceptive lending practices to ordinary borrowers, including high-interest short-term loans (e.g., payday loans, pawn loans) or the use of aggressive sales tactics.
    • Pendal considers to have been found to have significant breaches of social or environmental norms or regulations, or are subject to serious and substantiated allegations of unethical conduct, which Pendal considers have not been remedied or adequately addressed.

     

    Additionally, this allocation does not invest in companies deriving 10% or more of their gross revenue directly from:

    • fossil fuel-based power generation, refinement, or distribution (coal, oil, and gas).
    • supplying services related to fossil fuel extraction or exploration (coal, oil, and gas).
    • mining uranium for nuclear power generation.
    • unsustainable forestry or non-certified forest products, including non-Forest Stewardship Council certified forest products or non-Roundtable on Sustainable Palm Oil certified palm oil production.
    • indirect provision of gambling (e.g., through telecommunications platforms).
    • distributing or retailing pornography.
    • distributing or retailing alcoholic beverages.
    • distributing tobacco, including e-cigarettes and inhalers.
    • distributing or retailing non-controversial weapons or armaments (including civilian firearms or military equipment); or supply of goods or services specifically related to non-controversial weapons or armaments.
    International shares

    Will not invest in companies:

    • directly involved in extracting or exploring for coal, oil, and natural gas.
    • involved in producing tobacco, including e-cigarettes and inhalers.
    • involved in manufacturing controversial weapons, including cluster munitions, landmines, biological or chemical weapons, nuclear weapons, blinding laser weapons, incendiary weapons, and/or non-detectable fragments.

     

    Additionally, this allocation does not invest in companies deriving 10% or more of their gross revenue directly from:

    • fossil fuel-based power generation, distribution, or refinement (coal, oil, and natural gas).
    • production of alcoholic beverages.
    • manufacture, ownership, or operation of gambling facilities, gaming services, or other forms of wagering.
    • manufacture of non-controversial weapons or armaments.
    • manufacture or distribution of pornography.
    • uranium mining for the purpose of nuclear power generation.
    Australian Fixed Interest

    Will not invest in issuers:

    • directly involved in producing tobacco, including e-cigarettes and inhalers.
    • directly involved in manufacturing controversial weapons, including cluster munitions, landmines, biological or chemical weapons, nuclear weapons, depleted uranium weapons, blinding laser weapons, incendiary weapons, and/or non-detectable fragments.

     

    Additionally, this allocation does not invest in issuers directly involved in any of the following activities, if these activities account for 5% or more of the issuer's gross revenue:

    • exploration, extraction, or refinement of coal, oil, and gas.
    • producing alcoholic beverages.
    • manufacturing or providing gaming facilities.
    • manufacturing non-controversial weapons or armaments.
    • manufacturing or distributing pornography.
    • mining uranium for the purpose of weapons manufacturing.
    International Fixed Interest

    Will not invest in issuers:

    • directly involved in producing tobacco, including e-cigarettes and inhalers.
    • directly involved in manufacturing controversial weapons, including cluster munitions, landmines, biological or chemical weapons, nuclear weapons, depleted uranium weapons, blinding laser weapons, incendiary weapons, and/or non-detectable fragments.

     

    Additionally, this allocation does not invest in issuers directly involved in any of the following activities, if these activities account for 10% or more of the issuer's gross revenue:

    • producing alcoholic beverages.
    • manufacturing or providing gaming facilities.
    • manufacturing non-controversial weapons or armaments.
    • manufacturing or distributing pornography.
    • mining uranium for the purpose of weapons manufacturing.
    • the extraction of thermal coal and oil sands production.
    Alternative Investments

    Will not invest in companies or issuers:

    • directly involved in producing tobacco, including e-cigarettes and inhalers.
    • directly involved in manufacturing controversial weapons, including cluster munitions, landmines, biological or chemical weapons, nuclear weapons, depleted uranium weapons, blinding laser weapons, incendiary weapons, and/or non-detectable fragments.

     

    Additionally, this allocation does not invest in companies or issuers directly involved in any of the following activities, if these activities account for 10% or more of their gross revenue:

    • producing alcoholic beverages.
    • manufacture, ownership, or operation of gambling facilities, gaming services, or other forms of wagering.
    • manufacturing non-controversial weapons or armaments.
    • manufacturing or distributing pornography.
    • mining of uranium for the purpose of nuclear power generation.
    • Extracting thermal coal and oil sands production.

    All reasonable care has been taken to implement the Fund’s exclusionary screens. We draw on internal and supplementary external research, believed to be accurate, to determine whether a company is subject to the exclusionary screens. As the nature and conduct of businesses may change over time, and publicly available financial or other information is not always comprehensive or up to date, we do not guarantee that the Fund will meet all of these criteria at all times.

  • How do we engage companies within the SRI option?

    As responsible and active investors, Pendal confirms that it engages in regular dialogue with the companies in which they invest to manage risk, effect change and protect value over the long term.

  • Other investment details

    Companies with a climate transition plan may be exempted from Australian and international shares exclusions, provided they have in place a Paris Agreement aligned transition plan and produce climate-related financial disclosures annually, which Pendal considers credible.

    Exclusionary screens are not applied to property, government securities cash or derivatives.