our commitment

We're committed to changing futures. That requires long-term thinking, aiming for best possible performance while minimising risk - and investing in the future of our planet and its people.

We believe that investing responsibly is important to an investment’s long-term value. Understanding how an investment impacts on people and planet helps us understand an investment’s risks, opportunities and long-term sustainability.

 

Our commitment

We’re committed to responsible investing, and we’ve explained why and how in a number of policies.

 

Responsible investment

The HESTA Responsible Investment Policy (renamed June 2017 from 'ESG Policy') outlines our principles and commitments in relation to incorporating environmental, social and governance (ESG) considerations into our investment processes, decision-making and active ownership (share voting, company engagement, and advocacy activities).

 

Stewardship and active ownership

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 to explain how we apply each of the Principles.

 

Our Active Ownership Policy outlines our principles and commitments to being an active owner and incorporating ESG issues into our ownership policies and practices including share voting, company engagement and advocacy activities. Go to Active ownership for more information.

 

Climate change

The HESTA Climate Change Policy outlines our principles and commitments in relation to the incorporation of climate change considerations into investment processes and decision-making. For more information on our climate change program go to Responsible Investment - Climate Change.

 

UN backed Principles for Responsible Investment (PRI)

We regard the PRI as the key framework for integrating ESG considerations into our investment processes and decision-making and so, 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 principles are:

  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.

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.

For more information on the PRI visit unpri.org

 

TO DELIVER ON OUR COMMITMENTS, OUR TEAM COLLABORATES WITH A RANGE OF ORGANISATIONS IN THE INVESTMENT COMMUNITY IN ADDITION TO THE PRI:

 

AUSTRALIAN COUNCIL OF SUPERANNUATION INVESTORS (ACSI) 

HESTA is a founding member of ACSI, which provides a collective voice on environmental, social and governance (ESG) issues on behalf of Australian and international asset owner members. 

ACSI is our proxy advisor and engagement provider for Australian-listed companies and also conducts policy advocacy and research on ESG issues.

 

REGNAN

Regnan is an ESG research and engagement provider that focusses on the long term performance of companies through identifying ESG risks and opportunities. It provides us with engagement with Australian-listed companies.

 

HERMES EOS

Hermes EOS aims to protect the value of financial assets by engaging with companies on long term ESG risks. It provides proxy voting, ESG engagement and public policy advocacy services across our International equities investments.

 

INVESTOR GROUP ON CLIMATE CHANGE (IGCC)

The IGCC is a collaboration of Australian and New Zealand institutional investors focussing on the impact that climate change has on the financial value of investments. 

The IGCC aims to encourage government policies and investment practices that address the risks and opportunities of climate change for the ultimate benefit of superannuation members.

HESTA was a founding member of IGCC and maintains active involvement in the organisation.

 

ESG RESEARCH AUSTRALIA

We were a driving force behind the establishment of ESG Research Australia (ESG RA). This body supports stock-broking analysts and investment managers to research how ESG factors affect investments.

 

GRESB

GRESB is an investor driven organisation assessing the sustainability performance of real asset sector portfolios and assets. HESTA encourages all property and infrastructure fund managers to report annually to GRESB so we can assess the ESG risks and opportunities of these asset classes. 

 

INTERNATIONAL CORPORATE GOVERNANCE NETWORK (ICGN)

HESTA is a member of ICGN, a global membership organisation of institutional investors based in 50 countries with a mission to raise standards of corporate governance worldwide. 

 

ASIAN CORPORATE GOVERNANCE ASSOCIATION (ACGA)

HESTA is a member of ACGA, an independent, non-profit membership organisation dedicated to working with investors, companies and regulators in the implementation of effective corporate governance practices throughout Asia. 

INTERNATIONAL CORPORATE GOVERNANCE NETWORK (ICGN)

HESTA is a member of ICGN, a global membership organisation of around 600 leaders in corporate governance based in 50 countries with a mission to raise standards of corporate governance worldwide. ICGN members are largely institutional investors who collectively represent assets under management in excess of US$26 trillion. Further information on ICGN may be found at icgn.org

 

ESG RESEARCH AUSTRALIA

We were a driving force behind the establishment of ESG Research Australia (ESG RA). This body supports stock broking analysts and investment managers to research how ESG factors affect investments. Read more about ESG RA at esgra.org.au

 

INVESTOR GROUP ON CLIMATE CHANGE (IGCC)

The IGCC is a collaboration of Australian and New Zealand institutional investors focussing on the impact that climate change has on the financial value of investments. IGCC members represent a combined funds under management of approximately $2 trillion, and also includes others in the investment community interested in the impact of climate change on investments. The IGCC aims to encourage government policies and investment practices that address the risks and opportunities of climate change for the ultimate benefit of superannuation members.

HESTA was a founding member of IGCC and maintains active involvement in the organisation . Key members of our Investment Strategy team sit on the IGCC Management Committee and Chair the IGCC Low Carbon Finance Working Group. Find out more at igcc.org.au

 

AUSTRALIAN COUNCIL OF SUPERANNUATION INVESTORS (ACSI)

HESTA is a founding member of ACSI which undertakes corporate governance, policy, research and engagement work on behalf of its members. Read more at acsi.org.au