We use ESG factors to assess the risks and opportunities of investments, particularly over the longer-term. We believe this delivers better long-term financial performance to our members.
We have governance structures in place to assess investment risks, such as the ESG Policy, our Risk Management Framework and oversight from the Board and its committees. We also work closely with our investment consultant and investment managers to ensure ESG issues are considered across the broad investment portfolio, which includes both direct investments and investments through external professional investment managers.
We take climate change into account as we consider the ESG factors associated with any new investment, and we continue to evaluate its effects as part of our stewardship of our assets. ESG factors are also taken into account in any consideration to divest an investment. Climate change is a significant consideration in all our investment decisions.
We report on how our members super is exposed to climate risks and opportunities associated with climate change in our annual Climate Change Risk Report. The structure of this report is based on the four reporting areas recommended by the Task Force on Climate-related Financial Disclosures: governance, strategy, risk management, and metrics and targets.