HESTA recognises that investing responsibly - for people and planet - is important to an investment’s long-term value.
Looking at an investment's impact on people and planet helps us to more fully understand its risks and opportunities, particularly over the longer term.
Some examples include:
Greenhouse gas emissions
Pollution and waste
Workplace health and safety
Supply chain labour standards
Board structure and independence
Impacts on planet and people are important because they can affect the value of an individual investment, whether it's a company, property, infrastructure or another type. And that can affect long-term returns to members.
These impacts could include things like loss of reputation and share value, fines from regulators, or changing regulatory standards.
Responsible investing is particularly important for super funds for two key reasons.