we invest with purpose

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

 

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.

 

Smarter investments. Strong long-term returns.

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:

 

Planet People
  • Climate change
  • Affordable and clean energy
  • Innovative low carbon solutions
  • Management of natural resources
  • Clean water
  • Reducing pollution and waste
  • Good health and wellbeing
  • Workplace health and safety
  • Gender equality
  • Human rights
  • Decent work and labour standards
  • Affordable housing
  • Sustainable cities and communities
  • Indigenous rights and cultural heritage

 

 

How we invest responsibly

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.

 

Responsible investment integration in the investment process

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).
 

The 6 Principles for Responsible Investment
  1. We will incorporate ESG factors into investment analysis and decision-making processes.
  2. We will be active owners and incorporate ESG factors into our ownership policies and practices.
  3. We will seek appropriate disclosure on ESG issues by the entities in which we invest.
  4. We will promote acceptance and implementation of the Principles within the investment industry.
  5. We will work together to enhance our effectiveness in implementing the Principles.
  6. We will each report on our activities and progress towards implementing the Principles.


We complete the PRI Reporting and Assessment Framework each year. The outputs are available below.
 

HESTA PRI Responsible Investment Transparency Report

The HESTA PRI Responsible Investment Transparency Reports show our responses to all of the questions in the PRI Reporting Framework.


HESTA PRI Assessment Report

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.

  • HESTA PRI Full Assessment Report (pdf)
    *Note: the front page of this report states 2018, however this report is based on HESTA's PRI Responsible Transparency Report for the period ending 30 June 2017.

 

 

active ownership

 

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. 


How does active ownership work?

There are 4 aspects to active ownership at HESTA. 

1. Engagement

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.

2. Voting

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).

 

We use voting to send a message and influence change.

We aim to vote on all the shares we hold, subject to legal requirements.

 

We hold shares in close to 2,500 companies outside of Australia. To help us manage our active ownership commitments, we partner with Federated Hermes Equity Ownership Services, who vote on shares and undertake company engagement on our behalf.

 

Reporting period Voting summary and analysis Detailed voting record Engagement Summary
1 Apr to 30 Jun 2021 HERMES share voting report Share voting record Engagement report
1 Jan to 31 Mar 2021 HERMES share voting report Share voting record Engagement report
1 Oct to 31 Dec 2020 HERMES share voting report Share voting record Engagement report
1 Jul to 30 Sep 2020 HERMES share voting report Share voting record Engagement report
1 Jan to 30 Jun 2020 HERMES share voting report Share voting record Q1 Engagement report
Q2 Engagement report 
1 Jul to 31 Dec 2019 HERMES share voting report Share voting record Engagement report
1 Jan to 30 Jun 2019 HERMES share voting report Share voting record Engagement report
1 Jul to 31 Dec 2018 HERMES share voting report Share voting record Engagement report
1 Jan to 30 Jun 2018 HERMES share voting report Share voting record Engagement report
1 Jul to 31 Dec 2017 HERMES share voting report Share voting record Engagement report
1 Jan to 30 Jun 2017 HERMES share voting report Share voting record Engagement report
1 Jul to 31 Dec 2016  HERMES share voting report Share voting record Engagement report
1 Jan to 30 Jun 2016 HERMES share voting report Share voting record Engagement report
1 Jul to 31 Dec 2015    HERMES share voting report Share voting record Engagement report
1 Jan to 30 Jun 2015 HERMES share voting report Share voting record Engagement report
1 Jul to 31 Dec 2014 HERMES share voting report Share voting record  n/a
1 Jan to 30 Jun 2014 HERMES share voting report Share voting record  n/a
1 Jul to 31 Dec 2013 HERMES share voting report Share voting record  n/a
1 Jan to 30 Jun 2013  HERMES share voting report  n/a
 n/a
1 Jul to 31 Dec 2012 HERMES share voting report  n/a
 n/a
1 Jan to 30 Jun 2012  HERMES share voting report  n/a
 n/a
1 Jul to 31 Dec2011 HERMES share voting report  n/a
 n/a
1 Jan to 30 Jun 2011 HERMES share voting report  n/a
 n/a

For more information on Hermes EOS including voting and engagement policies visit Hermes Investment Management.

 


3. Advocacy

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.


4. Class actions

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.

 

 

Our team collaborates with a range of organisations in the investment community

 

Principals for Responsible Investment logo

Principles of Responsible Investment

Responsible Investment Association Australia logo

Responsible Investment Association Australasia 

Australian Council of Superannuation Investors logo

Superannuation Investors

Federated Hermes logo

Federated Hermes

Regnan logo

Regnan

Investor Group on Climate Change logo

Investor Group on Climate Change

Climate Action 100+ logo

Climate Action 100+

Transition Pathway Initiative logo

Transition Pathway Initiative

Global Real Estate Sustainability Benchmark logo

GRESB - Real Estate and Infrastructure

Carbon Disclosure Project logo

Carbon Disclosure Project

Australian Sustainable Finance Initiative logo

Australian Sustainable Finance Initiative

Better Futures Australia logo

Better Futures Australia

International Corporate Governance Network logo

International Corporate Governance Network

Asian Corporate Governance Association logo

Asian Corporate Governance Association

ESG Research Australia logo

ESG Research Australia

 

 

 

 

learn more about HESTA Impact

 


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.



More on advocate with influence >

 


Lead by example

We’re committed to reducing our environmental impact today for a better tomorrow.





More on lead by example >

 


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.



More on the HESTA Impact &UN SDGs >

 

 

 

 

 

 

 

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