Responsible investing changes
The merger will introduce changes to our approach to responsible investing and environmental, social and governance (ESG) considerations. Responsible investing will continue to form part of the merged fund’s investment approach.
CareSuper will continue to offer a Sustainable Balanced option. Learn more about our Sustainable Balanced option.
CareSuper and Spirit Super share a similar overarching approach and philosophy in relation to responsible investing. We believe that incorporating financially material ESG considerations into investment decision-making can help better manage risk and contribute to stronger investment returns in certain circumstances for our members. Furthermore, we believe that stewardship can assist with the careful and responsible management of our members' retirement savings.
As we bring the two funds together on 1 November 2024, the merged entity will need to assess our combined investment portfolio to ensure a smooth transition of responsible investing considerations, changes and exclusions for the merged fund. As such, CareSuper’s Net Zero Roadmap will not be able to be maintained in its current (pre-1 November 2024) form. CareSuper’s current Net Zero Roadmap targets will not apply from 1 November 2024.
Following the merger, CareSuper’s intention is to assess and determine exclusions, our aggregate investment portfolio carbon emissions baseline, any interim targets and our emissions reduction roadmap to ensure that settings are fit-for-purpose for the merged fund’s investment portfolio.
Determining responsible investing settings for the merged fund’s investment portfolio will take time as, for example, we assess a new starting point (or baseline) for the carbon emissions of the aggregate investment portfolio formed from 1 November 2024. Over the course of 2025, we intend to work on actively developing emissions reduction targets and formulating strategies to help achieve these targets.
Please note it is not intended that the merged entity’s responsible investing targets, strategies and exclusions will apply to the Direct Investment Option (where members choose their own investments) or to investments in a pooled fund or derivatives.
A summary of the key changes from the legacy CareSuper’s responsible investment approach from 1 November 2024 is provided in the following table:
CareSuper up to 31 October 2024 | CareSuper from 1 November 2024 | |
| Net Zero Roadmap targets | Target 1: Achieve a 45% reduction in carbon emissions intensity across our portfolio by 2030 (excluding the DIO). Target 2: Invest at least 3% of funds under management in climate transition-related opportunities by 2030. Target 3: Achieve net zero by 2050. | (Removed) Following the merger, CareSuper’s intention is to assess and determine our aggregate investment portfolio carbon emissions baseline, targets and our emissions reduction roadmap. |
| Exclusions – within Australian and overseas shares asset classes | CareSuper aims to exclude investments in companies that are classified by the GICS as belonging to the “tobacco” sub-industry – defined as manufacturers of cigarettes and other tobacco products1 – from our Australian and overseas listed shares asset classes, for our Managed and Asset class investment options: | No change |
Notes:
1 The merged entity’s external investment managers use data from GICS to identify companies falling within the GICS tobacco sub-industry 30203010 (manufacturers of cigarettes and other tobacco products). More information about the GICS system can be found here.
Important information
Please note that the merged entity’s responsible investing approach that will apply from 1 November 2024 is subject to change. We may provide updated information about the responsible investing approach, including as the merged entity works on developing its approach on our website.
Please also note that CareSuper’s responsible investing approach cannot and does not apply to the Direct Investment Option (DIO), because the DIO allows members to select their own shares, ETFs, listed investment companies and term deposits. As the DIO investments are selected by the member rather than by CareSuper and/or external investment managers, ESG integration and stewardship cannot be and is not undertaken for investments within the DIO.