Managing risk to generate sustainable, long-term returns.
Our goal at MTAA Super is to grow and protect your retirement savings over the long-term.
Environmental, social and governance (ESG) risks and opportunities can have a material impact on investment outcomes. How a company is managed, how it operates, and how it impacts the environment and society all affect a company’s likelihood of long-term and sustainable success.
Some ESG factors include, but are not limited to:
natural resource conservation
health and safety
product safety controls
conflicts of interest
risk management regulatory compliance
Monitoring and managing ESG risks allow us to exert a greater influence on how companies are managed and operate. This means we can make better risk-based decisions to protect and grow the value of our investments — and by extension, your retirement savings.
It can also lead to better outcomes for the environment and your community.
Our approach to managing ESG risks
We take an integrated approach to ESG risk management. We consider ESG risks, impacts, and opportunities throughout the entire life of our investment process. This includes how we select, retain, and realise investments.
To do this we:
engage with companies we invest in to improve their operations (see Active ownership)
vote at shareholder meetings to influence company governance (see Share voting)
While we don't offer investment options based solely on socially responsible investment considerations, our integrated approach applies equally across all our investment options.
Currently, and in line with many of our industry peers, the only companies we exclude from our portfolio are companies that produce tobacco products. In addition to the removal of tobacco products from the Fund’s portfolio, we have signed up to the Tobacco-Free Finance Pledge.
Generally, we do not exclude or screen-out companies with poor ESG attributes. Instead, we prefer to engage with these companies to enhance their ESG performance, which can lead to improved returns over the long term.
Key ESG risks we currently consider when investing include climate change, diversity, governance, and remuneration.
Our Investment Committee is responsible for ensuring that ESG issues are considered when making investment decisions. For more information, see our ESG Policy.
We consider climate change to be one of the most important ESG risks facing our investment portfolio.
We are committed to:
managing the risks and taking advantage of the opportunities associated with climate change
ensuring that climate change risks are considered by our advisors and investment managers
ensuring that climate change risks are analysed as part of the due diligence process when considering new investments
Through our membership of the Australian Council of Superannuation Investors (ACSI), we engage with companies to ensure they are addressing climate risk sufficiently. By working collectively with like-minded investors, we can have a greater influence on how companies manage climate change issues.
ACSI’s climate change focus is on engaging companies to improve their reporting and disclosures, and to make available reliable and comparable climate-related information. This will allow investors to better manage climate risks when making investment decisions.
ACSI also works with and on behalf of its members to develop long-term public policy certainty around climate change. This includes collaborating with groups like the Investor Group on Climate Change (IGCC), who focus on improving government policies and investment practices for the benefit of super fund members.