Socially Conscious diversified investment options

We offer a range of Socially Conscious investment options for members who prefer to limit investments in particular industries and companies considered to have a highly adverse environmental or social impact. These options are invested across a range of asset types (listed and unlisted), investment managers, and investment styles.

Screening criteria

The specifics of how the screens are applied to the options is known as the screening criteria. The screening criteria applied to the Socially Conscious investment options as at 31 March 2025 is setout in the table below and applies to all asset classes, but there are differences in how the screening criteria applies to the private equity asset class, as detailed below. The screening criteria is periodically reviewed by our Responsible Investments team and may be updated from time to time. Investments in companies and other entities involved in the activities described that meet or exceed the thresholds in the table below are excluded from these options.

However, please note that:

· Up to 5% of the private equity asset class maybe invested in companies and other entities not meeting the screening criteria, other than the tobacco, nicotine-alternatives and tobacco-based products, and controversial weapons screens.

· The screening criteria does not apply to the use of derivatives which may have an indirect exposure to these types of investments.

· The application of the screens is undertaken in a manner that means that continuous application of the screens may not be achieved. This may result in inadvertent holdings, typically over the short term, in investments we are seeking to exclude.

· Unless otherwise stated, companies that provide goods or services to companies generating revenue from the activities described, or that are involved in the distribution of these products, are not excluded.

· We do not automatically exclude companies’ subsidiaries, joint ventures or bond issuers; each is assessed on its own verifiable involvement in the relevant activity. For example, if a company is excluded due to its involvement in controversial weapons, its subsidiary will not be excluded unless it is assessed to be verifiably involved in controversial weapons based on its own activities.

We rely on the data provided by ISS STOXX to apply the screening criteria for the Socially Conscious options for the Australian shares, international shares and fixed income asset classes.  For information on the methodology that ISSSTOXX applies in generating their data, please refer to their website. The documents that are most relevant include the ‘Energy & Extractives Screening’, ‘Controversial Weapons Research’ and  ‘Sector-Based Screening’ methodology and research process papers. Note that these document titles may change as ISS may update their website from time to time.

Climate change screens

Ethical screens

1 Nicotine alternatives and tobacco-based products include: (i) electronic nicotine delivery systems as defined by the US Food and Drug Administration (e.g. ‘vaping’ devices, e-cigarettes) alternatively described as nicotine vaping products; (ii) dissolvable and non-combustible tobacco products (e.g. nicotine pouches, snuff); and (iii) shisha and water pipes.

Conventions and controversies-based screens

Exclusion of an investment as a result of the Corporate controversies screen will be based on an assessment by the Aware Super Responsible Investment team. Where available, relevant screens/ scores provided by external ESG data providers will be considered as part of the assessment. Importantly, companies will be assessed not just against minimum allowable legal standards but also against perceived best practice. Examples of negative corporate behaviours that may result in a company being excluded from the Socially Conscious options are provided below.

·        Environmental, ecological and biodiversity wrongdoings: including companies complicit in excessive or unauthorized emissions of CO₂ and other greenhouse gases, companies contributing to worsening water quality and companies with inadequate waste management practices.

·        Bribery and corruption: including both authenticated allegations and convicted violations.

·        A lack of commitment to engagement and cultural sensitivity to indigenous people and local communities.

·        Violation of human rights: including companies not adhering to the UN Guiding Principles for Business and Human Rights, for example by engaging in child labour, or otherwise not upholding international labour standards.

·        Corporate governance failings: including companies that fail to undertake adequate investigations and implement preventative measures in relation to identified corporate governance issues.

·        Serious health and safety failings: including companies that fail to undertake adequate investigations and implement preventative measures in relation to identified health and safety issues

Please read the Aware Super Investment and Fee Handbook for more information regarding how the Socially Conscious options are managed, and for additional information including the option’s investment objective, asset allocation, risk level and fee

Our Balanced Socially Conscious – Future Saver option is managed with specific restrictions and exclusions known as screens. It seeks to avoid investments in industries and companies recognised for having a highly adverse environmental or social impact. It is mostly invested in growth assets like shares and private equity. It has a target split of 75% growth assets and 25% defensive assets.