NGS Super's Active ownership and engagement policy outlines our position and approach to active ownership. This includes proxy voting, company engagement and advocacy activities, and shows our commitment to ESG and responsible investing principles.

Ownership

The Fund believes that active ownership is essential to its investment strategy and seeks to cover the entire portfolio under this policy.

NGS Super has defined a set of objectives to focus our active ownership activities, with the 17 UN Sustainable Development Goals (SDG) in mind. Each year1 the Fund will report on its progress against these objectives and its contribution to the SDGs.

ObjectiveRationaleUN SDG

Exclusions

The Fund has a zero tolerance for stocks within our portfolio that are on our exclusion list which restricts:

  • holdings in companies whose primary business is in the production and/or manufacture of tobacco, armaments and controversial weapons
  • holdings with companies that generate more than 30% of their revenue from the distribution, power generation, or extraction of thermal coal.

These exclusions are deemed by the Trustee as not in line with responsible investment. Managers are bound contractually to ensure these stocks are not within our portfolio.

Sustainable Development Goal 3 Sustainable Development Goal 13

Sustainable Development Goal 16

Climate change

Climate change presents material medium to long-term risks for investors (physical and transitional risk). Therefore we will support the objectives outlined in the Paris agreement and the transition to a low-carbon world.

Sustainable Development Goal 13

Human rights

We support and promote the protection of human rights in our investment supply chain. The Fund is committed to assessing its supply chain and complying with the Commonwealth Modern Slavery legislation (Modern Slavery Act 2018 (Cth))

We support and promote the protection of Aboriginal and Torres Strait Islander rights.

Sustainable Development Goal 1 Sustainable Development Goal 2

Sustainable Development Goal 3 Sustainable Development Goal 4

Sustainable Development Goal 8 Sustainable Development Goal 10

Governance

We promote and advocate for best practice corporate governance in the companies we own. Poor corporate governance diminishes long-term investment outcomes.

Sustainable Development Goal 16 Sustainable Development Goal 17

Pollution

We will promote the respectful treatment of our environment. Pollution of the environment can affect long-term value creation.

Sustainable Development Goal 6

Gender equality

We will promote gender equality, diversity and inclusion.

Sustainable Development Goal 5

Engagement

The Fund’s active ownership objectives shape the key ESG issues whereby the Fund or its appointed specialist partners will engage. If an ESG issue falls outside the agreed objectives, the Fund or its appointed specialist partners will engage as deemed appropriate.

ObjectiveRatingRationale

Exclusions

Critical2

The Fund has a zero tolerance for stocks within our portfolio that are on our exclusion list which restricts:

  • holdings in companies whose primary business is in the production and/or manufacture of tobacco, armaments and controversial weapons
  • holdings with companies that generate more than 30% of their revenue from the distribution, power generation, or extraction of thermal coal.

The Trustee will use best endeavours to refrain from investing in any company whose core business is engaged in a criminal offence under Australian law.

These exclusions are deemed by the Trustee as not in line with responsible investment. Managers are bound contractually to ensure these stocks are not within our portfolio.

Climate change

Critical2

Climate change presents material medium to long-term risks for investors (physical and transitional risk). We support the objectives outlined in the Paris agreement and the transition to a low-carbon world.

Human rights

Critical2

We support and promote the protection of human rights in our investment supply chain. The Fund is committed to assessing its supply chain and complying with the Commonwealth Modern Slavery legislation (Modern Slavery Act 2018 (Cth)).

Governance

Very important3

We promote and advocate for best practice corporate governance in the companies we own. Poor corporate governance diminishes long-term investment outcomes.

Pollution

Very important3

We will promote the respectful treatment of our environment. Pollution of the environment can affect long-term value creation.

Gender equality

Important4

We will promote gender equality, diversity and inclusion.

Proxy voting

In the interest of good governance and our commitment to our Active ownership and engagement policy, NGS publishes real time interactive proxy voting history. This includes:


  • the name of the company
  • the meeting date
  • the country where the vote took place
  • the nature of the resolutions and
  • how the Fund voted.

Committing to a better and more sustainable tomorrow

NGS takes a continuous improvement approach in responsible investment. We are now evaluating our investment portfolio's impact on and contribution to the United Nations (UN) Sustainable Development Goals (SDGs).

The United Nations developed the 17 SDGS to promote a better, more sustainable future for all people. Read on to find out how NGS Super is addressing them.

Policies and principles

We invest over $11.7 billion on behalf of our members and we take our capital stewardship seriously. We believe that investing to provide good financial returns to members, as well as positive social impacts, is a win-win.

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1 This policy was created July 2019. The first report against objectives will be for the year ended June 2020.

2 Contractual or legal obligations surround the objective, or presents significant short to medium-term risks to the portfolio.

3 Areas the Fund believes, if not proactively addressed, could affect long-term value creation and compromise its commitment to responsible investment.

4 Issues that are values-based and important to the Trustee and Fund members.

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