Investment Highlights - Environmental, Social and Governance (ESG)

Listen to TelstraSuper Investment Compliance Analyst James Spencer explain what ESG is and how TelstraSuper approaches responsible investment.

  • Transcript
    Hi, my name is James and I’m part of the Investment Operations team here at TelstraSuper.

    While TelstraSuper considers many things before we invest your money, today I’m sharing a quick overview as to how we approach responsible investment – what we call ESG considerations.

    You might have heard the term ESG before:
    • E stands for environmental – so the effect a company has on the natural environment
    • S stands for social – such as how a company manages relationships with its employees and the wider community
    • And G stands for Governance - such as the company’s leadership team, audits and shareholder rights

    We believe thinking about ESG is not only important to be a good corporate citizen, but it’s also important to our investment returns. This is because companies that act in a responsible way tend to succeed financially better than those that don’t.

    TelstraSuper considers ESG factors for the life of our investment. We also require external fund managers we use to do the same – and we have a process to regularly check that they do.

    TelstraSuper also has a number of other measures in place to assist us in being a responsible investor. This includes:

    • Deciding not to invest in certain industries that we feel have poor ESG credentials – for example tobacco manufacturing companies, or companies making controversial weapons such as cluster bombs and land mines.
    • Actively investing in industries that we feel do have good ESG credentials. For example we hold significant investments in clean energy such as solar and wind farms.

    We’re working hard so that our investment approach remains consistent with our beliefs on responsible investment to help achieve the best financial outcomes for you.