Aware Super offers two investment options for members who want greater certainty about the environmental and social impact of their investments.
We embed environmental, social and governance (ESG) considerations into our investment processes across all our investment options and asset classes. Our SRI options are designed for members who want to avoid particular industries and companies, so these investments are selected and managed according to additional and more specific restrictions and exclusions (i.e. screens).
We offer two SRI options:
- Australian Equities Socially Responsible Investment (SRI)
- Diversified Socially Responsible Investment (SRI)
Separating the wheat from the chaff
Separating the wheat from the chaff Investing in options which give you greater certainty about the environmental and social impact of your investments does not mean you have to sacrifice returns.
We integrate ESG considerations into our investment activities across all our investment options, however the investments in Aware’s SRI options are required to meet rigorous screening criteria and are selected and managed according to additional and more specific restrictions and exclusions.
Ruling out companies and industries considered to have a highly adverse environment or social impact has not prevented Aware’s SRI options from delivering strong long-term returns. For example, their Diversified SRI option has delivered 7.1% per annum over 10 years to 30 September 2022.
Helping members invest in ways which align with their values
Aware Super integrates ESG factors into all their investment decisions, but investments in the SRI options are selected and managed according to extra, and more specific restrictions and exclusions, or screens.
There are three categories of screen:
- Climate change screens, which include coal, oil & gas, fossil fuel supply and services and coal-fired power generation
- Ethical screens, which include tobacco, nicotine alternatives1 and tobacco-based products, gambling, live animal exports and civilian firearms; and
- Conventions and controversies-based screens, which include controversial weapons and corporate controversies, including companies consistently involved in very severe incidents or at high risk of being involved in incidents or controversies in the future.
We also have Discretionary exclusions – that is, where a company may be identified as being unsuitable for the SRI options for factors outside the formal ‘screens’ criteria.
See our Member Booklet Supplement (Product Disclosure Statements) for the latest information on the screens for the SRI options, including descriptions of each screen and thresholds.
Understanding the landscape
Patricia Perez, Aware Super’s Business Development Manager, says it is important for advisers to understand the different approaches being used across the investment landscape to invest responsibly or ethically as they can mean very different things.
“There are many different terms used and quite often each manager is doing something different,” she says.
“Once you understand the landscape then it’s important to really find out from clients what responsible investing means to them, why they want to invest responsibly, and if there are specific areas they want to screen out.”
Aware Super offers a broad range of expert services to help grow your advice business. To find out more, please click here.