responsible investment

HESTA recognises that environmental, social and governance (ESG) factors are important to an investment’s long-term value.

Responsible investment or investment considering ESG factors help us to more fully understand an investment’s risks and opportunities particularly over the longer-term.

Some examples include:

Environment Social
Governance

Climate change

Greenhouse gas emissions

Biodiversity loss

Resource scarcity

Pollution and waste

Workplace health and safety

Human rights

Supply chain labour standards

Ageing populations

Community engagement

Board structure and independence

Executive remuneration

Corruption

Business ethics

Risk management

Transparency

 

Why does ESG matter?

ESG factors are important because they can affect the value of an individual asset, whether it be a company, property, infrastructure asset etc. And so, can impact long-term returns to members.

These impacts could include things like loss of reputation and share value, fines from regulators, or changing regulatory standards.

ESG factors are particularly important for super funds for two key reasons:

  1. We invest in assets over a very long time-frame. This makes issues such as climate change and the associated government regulation important in terms of impact on investment value.
  2. We are broadly invested across the markets, and therefore the health and resilience of the economy as a whole is important. 

 

active ownership

We believe that good corporate governance is critical to protecting the value of our investments.

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Key ESG Issues

We focus on key environmental, social and governance (ESG) risks that impact investment returns.

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HESTA Eco Pool

When you choose Eco Pool, you're investing your super based on a range of ESG criteria.

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