QSuper’s Socially Responsible investment option: our first Outcomes Report

QSuper’s Socially Responsible investment option includes reporting on its aims for a clear, real connection between the responsible investment aims of members and the impacts their investments have.

A 2019 review by QSuper found members wanted to see tangible, real-world outcomes to environmental and social concerns through our Socially Responsible investment option.

QSuper provides information on the impact of investments through its annual Socially Responsible investment option outcomes report.

How QSuper redesigned the Socially Responsible investment option

In 2019, a review of QSuper members found they wanted to see tangible, real-world outcomes to environmental and social concerns, such as clean energy, green buildings, environmental conservation, waste reduction and recycling, along with food and water scarcity, medical and technological innovation, education, and health care.

As a result, QSuper redesigned our Socially Responsible option, lowered its Standard Risk Measure (SRM) and fees, and took over management of the option in-house.¹

With the option, QSuper aims to target what members tell us they care about, seek investments that have a positive impact on the world and people, and provide information on the impact of these to its members.

Socially responsible impact

For QSuper, aligning investments with our members' preferences is not only about what we buy and sell, it's also about influencing how the companies we invest in do business, for the benefit of members.

It’s important to us that we can report tangible results to members. In 2020-21, after 12 months of managing our redesigned Socially Responsible option, we have experienced an 82% increase in the number of members invested in the option and an increase of 174% in total funds under management in the option over the 12 months to 30 June 2021.

As at 30 June 2021, our Socially Responsible option was designated by SuperRatings² as the fastest-growing option of its kind in Australia.

Socially Responsible results

Much of the data about the impact of QSuper’s Socially Responsible investments is expressed using the United Nations’ Sustainable Development Goals (SDGs), which are 17 areas of action that member states committed to under the 2030 Agenda for Sustainable Development.

Members’ social responsibility preferences are closely aligned to many of the 17 United Nations’ SDGs.

QSuper investments that contributed positively to the SDGs had a combined total of more than $366 million, or 38% of our Socially Responsible option.

The SDG-alignment and value of the assets in QSuper’s Socially Responsible (SR) option, at 30 June 2021, includes:

$41.1m
Zero hunger
SGD2

$90.2m
Good health and well-being
SGD3

$7.3m
Quality education
SGD4

$8.3m
Clean water and sanitation
SGD6

$95.9m
Affordable and clean energy
SGD7

$0.3m
Industry, innovation, and infrastructure
SGD9

$117.6m
Sustainable cities and communities
SGD11

$5.1m
Life on land
SGD15

Socially Responsible investing in action

The QSuper Socially Responsible investment option invests in asset classes from listed and unlisted equities to fixed interest, real estate, and infrastructure.

One of the stand-out achievements for the option during 2020-21 was entering into a custom-designed impact mandate with Swiss fund manager Partners Group, one of the world’s leading investment managers, called the Gondwana mandate.

The investment gives members exposure to private asset classes, such as private equity, infrastructure, and private debt that are often hard for individual investors to access.

Through Gondwana, QSuper has invested in Axia Women’s Health, a US-based provider of integrated women’s health and medical services that focuses on improving wellness and maternity outcomes.

It has also invested in Dimension Renewable Energy, a community solar and grid storage developer that acquires and leases land for solar farms. Dimension has over 600 megawatts under development, 100 projects in its pipeline across the US, and works with communities to address the social and environmental aspects of its projects.

Read our full report

Read the QSuper Socially Responsible Option Outcomes Report

 

1. The Standard Risk Measure (SRM) is based on industry guidance to allow you to compare investment options that are expected to deliver a similar number of negative annual returns over any 20-year period. The SRM is not a complete assessment of all forms of investment risk. For more information, refer to the Investment Choice Guide.
2. SuperRatings Sustainable Balanced fund tables, as at 31 May 2021 issued by SuperRatings Pty Ltd ABN 95 100 192 283 AFSL 311880 (SuperRatings). Ratings are general advice only and have been prepared without taking account of your objectives, financial situation or needs. Consider your personal circumstances, read the product disclosure statement and seek independent financial advice before investing. The rating is not a recommendation to purchase, sell or hold any product. Past performance information is not indicative of future performance. Ratings are subject to change without notice and SuperRatings assumes no obligation to update. SuperRatings uses objective criteria and receives a fee for publishing awards. Visit superratings.com.au for ratings information. © 2021 SuperRatings. All rights reserved.