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Climate change is important to us

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Pushlished date icon Published on 12 Jun 2020

Climate change is one of the most significant investment issues facing us all today and will have a significant impact on our environment and broad implications for communities and economies. At Prime super, we consider it our responsibility to factor the physical and investment-related risks of climate change into our investment philosophy as the world transitions to a low carbon economy

We work with our investment managers to ensure they consider climate risks in their investment approach. Our investment managers provide us with regular updates on how they engage with investee companies on ESG issues, including climate change.

Prime Super works to protect its investments from the possible future implications of climate change and has engaged experts to help analyse our investment exposure.

Environmental data expert, Sustainalytics, has been commissioned by Prime Super to analyse our exposure to carbon across our portfolio of listed equities.  Climate risk experts, Four Twenty Seven, have been engaged to assess the resilience of our property and infrastructure asset portfolio to climate risks including heat and water stress, floods, sea level rise, wildfires, hurricanes and cyclones. 

The findings of which suggest that Prime Super's total equity portfolio is less carbon intensive and has lower exposure to fossil fuels, when compared with industry benchmarks*.

Our Climate Change Position statement can be found here. And our Climate Change Policy detailing how we integrate climate risk and awareness in our investments and our own operations as a trustee can be found here.

We also offer a choice for our members to fully or partially invest their super into our Sustainable Responsible Investment Balanced (SRI) option which focuses on sustainable investing.

Our Environmental, Social and Governance (ESG) policy does not exclude investments that have climate risks, as we consider it to be a systemic and undiversifiable risk. Instead, we continually analyse and assess risks of our investments, including climate risk, to ensure that the investment decisions we make are in the long-term financial interests of our members. 

We also believe that by being invested, we can support change. For instance, as an investor in Australian companies, we vote on climate change specific resolutions at those companies' annual general meetings. We consider each resolution put forward and cast our votes accordingly in line with our ESG and Proxy Voting Policy. You can view our bi-annual voting history here.

*Benchmark is the S&P ASX 300, MSCI World ex. Australia and MSCI Emerging markets indices aggregated. All data is as at 31 December 2019 and we intend to update this information annually.