#1 fund for weathering market ups and downs3
SuperRatings' Pension of the Year three years in a row4
During the many virtual events QSuper hosts throughout the year such as the Annual Members’ Meeting, the Annual Investment Update and regular seminars, members will sometimes raise questions regarding QSuper’s approach to investing and climate change.
With approximately 600,000 members and more than $120 billion in funds under administration, QSuper has risk-balanced investment strategy with the objective of helping our members achieve strong long-term returns with less risk. Balancing risk means considering investment risks holistically, including climate-related risk.
"We see climate change risk as an investment risk that can impact the achievement of our investment objectives for our members. As a Board we believe that the transition to a low carbon world economy, as envisaged in the Paris agreement, is necessary to address and manage climate change."
QSuper Annual Members’ Meeting 2020
Walter Ivessa, QSuper Trustee
QSuper’s Climate Change policy states the following:
"QSuper is committed to using its strength as an investor to directly influence the reduction of carbon emissions that contribute to climate change.
This commitment includes aligning the QSuper portfolios to a decarbonisation path consistent with achieving net-zero carbon emissions by 2050 in line with the Paris Accord. It will support this approach both through enhanced disclosure of its own activities and use of its influence as an asset owner.
This is consistent with our fiduciary duty to act in the best financial interests of members and with our risk-balanced strategy of maximum diversification.
Our views are informed by science. Warming of the climate system is unequivocal, and human influence on the climate system is clear. Observational climate data demonstrate climate change is happening. Continued emissions of greenhouse gases will cause further warming and long-lasting changes in all components of the climate system, creating risks for the economies and markets QSuper invests in. Achieving the temperature limits set out in the Paris Accord is considered the least-cost pathway for the real economy and therefore supports the best investment outcomes for our members.
QSuper will integrate transition and physical risks into its consideration of all investment risks across asset classes and the portfolio as a whole.
We will use our voice as a large asset owner to advocate for effective policy and business responses on climate that seek to achieve a smooth transition to a low-carbon economy and increase resilience to transition and physical risks.
We will also disclose our progress in line with global best practice, including through a report that adheres to the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD) for the year ending 30 June 2022.
QSuper will incorporate the carbon emissions targets of the Paris climate accord into a robust approach to investment decision making which will assess climate change risks and opportunities.
We believe that aiming for the Paris targets implies support for "net zero emissions" by 2050, an outcome necessary to meet an end-of-century cap on global warming. The Paris accord aims to keep the global temperature rise this century to well below 2 degrees above pre-industrial levels."
QSuper also recently brought in-house the investment management of the Socially Responsible investment option. This change was in response to our members’ requests for a more holistic socially responsible investment option that targets a positive impact on certain environmental and social issues, while avoiding investments that have a negative impact.
In late 2019 we surveyed more than 1600 current and previous members in the existing Socially Responsible option as well as a random sample of QSuper members – and non-members – which gave us a clear idea about the issues most important to many investors. This informed the development of our option.
The Socially Responsible option invests in assets such as clean energy, health care and education, and has minimal or no exposure to assets that have negative environmental or social impacts such as fossil fuels, gambling or adult entertainment.
Some of the benefits of bringing the investment management in-house include:
Read more about the Socially Responsible investment option.
QSuper investment options
Annual Members Meeting Q&A
Investment strategy & philosophy
How your money may be helping in the fight against COVID-19 through QSuper’s investments.
Actions to measure and manage climate change risk
For over 100 years, QSuper has been there for members – in the good times and the tough ones. As one of Australia’s largest and oldest superannuation funds, QSuper is here to grow our members’ super.
See the changes to super mooted to come into effect in July 2021