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.
We’re committed to responsible investing, and we’ve explained why and how in a number of policies.
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).
Other important statements outlining HESTA’s positions are:
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 Responsible Investment 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.
The HESTA Climate Change Statement outlines our principles and commitments in incorporating climate change considerations into investment processes and decision making.
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:
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 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.
EOS at FEDERATED 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 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.