sustainable growth

Our Sustainable Growth investment option invests in companies selected and managed according to specific environmental, social and governance (ESG) standards.

invest your super in what you care about

 

    

Excludes
 

Sustainable Growth does not invest in thermal coal mining, tobacco production, uranium, controversial and nuclear weapons and companies who provide the services of asylum seeker detention centres. 

 

 

Thermal coal

 

 

Tobacco

 

 

Asylum seeker detention centre services

 

 

Uranium

 

 

Controversial weapons

 

 

Nuclear weapons

 

 

    

Includes
 

Sustainable Growth invests in companies with superior environmental, social and governance performance. 

 


 

  

Responsible investment performance companies

 

 

Sustainable properties

 

 

Sustainable solutions

 

 

 

 

 

 

 

top performing balanced investment option

 

The HESTA Sustainable Growth option is the best performing balanced super option in Australia over a 15-year timeframe.*

 

 


23.03%

Sustainable Growth option average annual return:
1 year
(as at 30 June 2021)^

 

 

 


11.28%

Sustainable Growth option average annual return:
10 years
(as at 30 June 2021)^

 

 

 

 

 

 

When you invest your super in HESTA Sustainable Growth, you're encouraging companies to respond to community expectations for safer, cleaner, more sustainable performance.

 

exclusions in sustainable growth

 

In addition to our portfolio-wide restrictions and exclusions, we have implemented more extensive ones in Sustainable Growth.

 

 

  Fossil fuels

Sustainable Growth excludes investment in any company that:

  • derives any revenue from the mining of coal, or the extraction, production or refining of conventional and unconventional oil and gas
  • derives more than 15% of revenue from the generation of electricity from fossil fuels or the transportation, distribution or retail of conventional and unconventional oil and gas
  • derives more than 15% of revenue from the supply of equipment or services for the exploration and production of conventional and unconventional oil and gas activities.


  Tobacco

Any company that:

  • produces and/or manufactures tobacco or tobacco related products
  • derives more than 15% of revenue from the manufacture and supply of key products necessary for the production or manufacture of tobacco, tobacco products, or the wholesale or retail of tobacco or tobacco products.

 


  Uranium

Any company involved in the mining or processing of uranium.


Asylum seeker detention centre services

Any company that provides the services of asylum seeker detention centres.


Controversial weapons

Any company that produces whole weapon systems or components developed for exclusive use in cluster munitions, anti-personnel mines, biological or chemical weapons.


 Nuclear weapons

Any company that produces whole weapon systems or components developed for exclusive use in nuclear weapons.

 

 

 

 

 


how we invest

 

The Sustainable Growth investment option aims to invest in companies that seek to deliver strong, long-term performance, while managing a range of environmental issues our members have specified matters to them.

It invests in shares and debt and private equity assets with environmental, social and governance standards, along with some exposure to environmental property investments. With a higher exposure to growth assets, this option may experience high volatility.

The implementation of these exclusions and restrictions may be affected by the accessibility and accuracy of data or an error by an external service provider. This may result in inadvertent holdings, typically over the short term, in companies we're seeking to avoid.

 

Investments in Sustainable Growth - clean technology opportunities

HESTA has been actively investing in low carbon opportunities and currently has around 9% of total assets under management in low carbon or climate resilient investments.

Generation, a private equity manager with whom HESTA partners, construct portfolios of sustainable companies, consistent with a low-carbon, prosperous, equitable, healthy, and safe society.

Read more about these companies and their sustainability impact. 

 

Convoy is a digital freight network that connects shippers to carriers to move hundreds of thousands of truckloads efficiently, saving money for shippers, reducing hassle for carriers and eliminating carbon waste.

Generation believes there is a significant opportunity to address systemic inefficiencies within the trucking industry from decades of fragmentation and antiquated operations, resulting in hundreds of billions of dollars of waste.

By leveraging a centralised, automated and data-based platform, Convoy operates a business model that is fundamentally different from that of a traditional broker and is positioned to offer a set of differentiated services that is unique within the market.
 

Sustainability impact

By improving trucking utilisation, Convoy can deliver higher earnings for carriers, lower shipping costs, and reduce empty miles driven and carbon emissions to the system.

 

 

Gogoro is a Taiwan based provider of electric scooters, replaceable battery packs and battery swapping stations. They have developed an innovative solution to vehicle electrification for dense urban areas.

Electrification of transport vehicles is a significant market trend that will drive tangible environmental efficiencies, with Asian markets especially tuned towards scooter modalities.

Generation believes that Gogoro, with its differentiated product and brand, is well placed to capitalise on the movement towards electrification of mobility solutions. There is significant room for growth in the urban transit electrification market, which is taking place at a rapid pace in Asian cities where scooters are integral modes of transport.
 

Sustainability impact

Electric vehicles are a key mobility solution and offer a low carbon transport option. We estimate that, between 2015 and 2018, Gogoro's operations reduced CO2 emissions by 39,060 metric tons, predominantly due to reduced fuel dependency.

 

 

 

See all Sustainable Growth holdings

You can search through asset classes, or search for a specific holding. Each investment holding will be accompanied by its weighted allocation within Sustainable Growth.

 

See our holdings

 

 

 


Sustainable Growth asset classes
 

Sustainable Growth Equity

The investment process for Sustainable Growth’s active equities component is driven by research focused on integrating ESG factors with fundamental financial analysis in order to identify high quality management teams and businesses. This enables a comprehensive understanding of each company and the ESG risks and opportunities impacting it.

 

Sustainable Growth Fixed Income

Sustainable Growth's active managers in the global debt asset class consider ESG factors and systemic issues as part of the credit analysis and capital allocation decision-making process. They also consider the financial market an asset operates in and the impact of the global economy more broadly. 

 

Sustainable Growth Property

Property investments in the Sustainable Growth option are required to achieve high environmental ratings. These ratings include above average NABERS Energy and NABERS Water ratings and 4 star and above for Green Star As Built (Green Building Council of Australia), where applicable. The property fund also needs to be highly rated by the Global Real Estate Sustainability Benchmark (GRESB).

 

Sustainable Growth Private Equity

The objective of private equity investments in Sustainable Growth, is to seek long-term sustainable outperformance through aligned responsible investments, with a focus on opportunities that have a positive environmental impact.

 

You can learn more about asset classes in Investment choices (pdf)

 

 

sustainable growth investment strategy

Compare Sustainable Growth with our other investment options and see if it suits your risk profile.


 

* SuperRatings’ June 2021 Fund Crediting Rate Survey

^ Average annualised return. Returns shown are for the Sustainable Growth super option. The returns for Sustainable Growth Income Stream option will differ. The returns shown are net of investment fees, indirect costs and taxes.

Product ratings are only one factor to be considered when making a decision.

Investments may go up or down. Past performance is not a reliable indicator of future performance.