RIAA welcomes APRA’s renewed expectations of super funds in prudential guidance SPG 530 Investment Governance.

We make the following recommendations to further strengthen and clarify draft SPG 530:

1. Clarify ESG terminology in line with global norms: Define key ESG-related terms and use this terminology consistently.
2. Relocate guidance on ‘Additional ESG impacts’: Include the guidance on impact investing and stewardship within the section on ‘Formulating the investment strategy’.
3. Clarify stewardship guidance: Define ‘stewardship’ and substitute principles-based guidance linking stewardship to superannuation funds’ best financial interests duty to members.