For most Australians, super is our single biggest financial investment – often worth more than our homes. In fact, superannuation funds are Australia’s single biggest investor, with assets worth $2.6 trillion dollars in 2018. Many of us are taking a closer look at our superannuation funds and realising we can make decisions about the kinds of investments that are made in our name. It’s reassuring to learn that, not only can our retirement savings plan be a powerful force for good, but also that making decisions about sustainable investment can deliver good returns.
Aside from just doing the right thing, it’s a smart decision to check your investments are going into high quality shares. Today’s market has a low tolerance for companies that don’t behave ethically, or that cause pollution or treat their workers poorly. These companies risk large fines, consumer boycotts and reduced long-term profits and pose a poor investment risk.
NGS Super is committed to sustainable investment
Every year, NGS Super calculates its carbon footprint and then offsets that through environmental projects. As a member of the Australian Council of Superannuation Investors (ACSI), NGS Super works to improve environmental, social and governance (ESG) performance and is committed to sustainable investment practices.
One of the ways the Fund demonstrates this commitment is through its partnership with organisations like Social Ventures Australia (SVA) that deliver socially responsible projects. One recent SVA project, the Resolve Social Benefit Bond, will fund a community-based mental health program run by leading mental health service, Flourish. The program aims to reduce the amount of time participating mental health patients spend in hospital. The savings in government expenditure generated through the reduced consumption of government-funded health services will deliver returns to investors like NGS Super.
NGS Super’s approach to Environmental, Social and Governance (ESG)
Everything NGS Super does follows its Responsible Investment Policy, which shapes the Fund’s approach to managing Environment, Social and Governance (ESG) issues in its investments.
As a member of the Investor Group on Climate Change, NGS Super sees enterprises whose operations contribute to climate change as posing a long-term investment risk. Ditto for organisations that either contribute to environmental degradation or don’t manage their environmental impacts. That’s why if you’re a member of NGS Super, you won’t find your super invested in fossil fuel producers, or companies with a track record of high pollution or deforestation.
The Responsible Investment Policy also means that the Fund steers clear of investing in companies with a bad track record with their labour market practices, their occupational health and safety or the safety of their products – because these issues can pose very substantial reputational and regulatory risks.
With NGS Super, not only is your super in safe hands – it’s also in good hands.