Investing for long-term financial performance means taking a long-term perspective on how investments improve the planet and society members will retire into.
Responsible investment is an approach to investing that incorporates the consideration of environmental, social and governance (ESG) risks and opportunities into investment decision making, to generate sustainable, long-term returns that create a positive impact.
To deliver strong financial returns for our members’ financial futures, we must address financial and non-financial considerations and advocate for necessary changes to the financial system.
When HESTA makes investment decisions, we consider:
The HESTA Responsible Investment Policy outlines our principles and commitments in relation to incorporating environmental, social and governance (ESG) strategies into our investment decisions.
Read the HESTA Responsible Investment Policy (pdf) to find out more about HESTA’s approach as we transition our portfolio.
We regard the United Nations Principles of Responsible Investment (PRI) as the key framework for integrating ESG considerations into our investment processes and decision-making and HESTA is a proud signatory to, and an active participant in, the PRI.
The PRI provides a common language that is understood globally by all participants in the investment industry — super funds, fund managers, asset consultants, governments, and non-governmental organisations (NGOs).
We complete the PRI Reporting and Assessment Framework each year. The outputs are available below.
The HESTA PRI Responsible Investment Transparency Reports show our responses to all of the questions in the PRI Reporting Framework.
The HESTA PRI Assessment Reports show PRI's Assessment of how HESTA has progressed in the implementation of the Principles year-on-year and relative to peers across asset classes.
Active ownership (or stewardship) is the means by which investors most directly influence companies, markets, and economies, and in turn society and the environment, as a whole.
We do this as part of our responsibility to protect and enhance long-term investment value for members by promoting sustainable value creation in the organisations we invest in.
As a long-term investor that expects to own an asset for a number of years, we see active ownership as especially important in serving the interests of our members.
We're proud to be a signatory to the Australian Asset Owner Stewardship Code, which consists of six Principles. As a signatory, we've developed a Stewardship Statement (pdf) to explain how we apply each of the Principles.
There are 4 aspects to active ownership at HESTA.
This means entering into a dialogue with companies to help us better understand their business model and influence their performance and practices. It also includes the dialogue we have with our external investment managers to encourage progress in their ESG integration practices.
This means exercising our voting rights in both listed and unlisted markets as a key element of our stewardship activities, and an important link in the chain of accountability between a company and its shareholders (and an investment manager and its investors).
As a large super fund, we recognise our influential position in the market and our responsibility to use our voice responsibly to address systemic issues that are at odds with maintaining and building sustainable financial markets and generating long-term performance. This may involve seeking change, or developing laws, regulations, standards or guidelines to improve long-term performance of markets and reduce market failures.
Advocacy may also focus on raising awareness about ESG issues or practices that will help us achieve sustainable financial markets or better RI Practices.
Read more about how we advocate with influence.
Class actions allow shareholders to claim for losses against a company, where the loss can be shown to be due to breaches of corporate laws or regulations.
HESTA supports class actions to recover losses and encourage better standards of corporate governance and accountability.
Principles for Responsible Investment
Responsible Investment Association Australasia
Australian Council of Superannuation Investors
Investor Group on Climate Change
Climate Action 100+
Transition Pathway Initiative
GRESB - Real Estate and Infrastructure
Carbon Disclosure Project
Australian Sustainable Finance Institute
Better Futures Australia
International Corporate Governance Network
Asian Corporate Governance Association
ESG Research Australia
Advocate with influence
By raising our voice to influence opinion, policy and culture, we’re keeping our promise to be a gutsy advocate for a fair and healthy community.
HESTA Impact & UN SDGs
With the United Nations Sustainable Development Goals (SDGs) as our compass, we’re delivering long-term value for our members, our community and our planet.