How we evaluate products
Responsible Investment strategies, processes, practices and disclosures are assessed against the eight criteria for product certification in the Responsible Investment Standard and accompanying Guidance and Assessment Notes.
What this symbol means
General certification: This Symbol signifies that a product or service offers an investment style that takes into account environmental, social, governance or ethical considerations, and that it adheres to the operational and disclosure practices required under the Responsible Investment Certification Program for the category of Product.
Sustainable Plus classification: This Symbol signifies that a product or service has been certified and classified to offer an investment style that takes into account environmental, social, governance or ethical considerations, with embedded, measurable and reported sustainability objectives aligned with portfolio holdings and stewardship practices, adhering to the operational and disclosure practices required under the Responsible Investment Certification Program for the category of Product.
<span class="text-size-xxsmall">The content on this webpage is provided by Responsible Investment Association Australasia Ltd (ACN 641 046 666, AFSL 554110). For more information refer to our Financial Services Guide. Certain content provided may constitute a summary or extract from the offer document of a financial product. Any general advice has been provided without reference to your investment objectives, financial situation or needs. If the advice relates to the acquisition of a particular financial product for which an offer document (such as a product disclosure document) is available, you should obtain the offer document relating to the particular financial product and consider it before making any decision whether to acquire the product. Past performance does not necessarily indicate a financial products’ future performance. To obtain information tailored to your situation, contact a financial adviser.</span>
Themes & Issues
Society
Environment
<span class="text-size-xxsmall">For RIAA’s definitions of the themes included and issues avoided, please view this guide. Product-specific exclusion criteria and practices may vary. You can find these by referring directly to the product provider.</span>
Overview
Sustainable Growth contains a mix of responsible investment approaches including ESG integration, exclusionary (negative), positive and discretionary screening, and active ownership.
Description
Exclusions:
- Environmental Damage: A company identified as materially contributing to environmental issues and environmental controversies
- Fossil Fuels: A company which:
- Owns fossil fuel (thermal coal, metallurgical coal, oil and gas*) reserves
- Derives revenue from
- oil and gas* exploration, production and related activities (pipeline transportation, refineries, and oil and gas equipment and services)
- power generation from thermal coal, oil and gas*
- the leasing, mining and processing of coal and coke; and uranium, radium, and vanadium mining are also excluded.
* includes oil sands and arctic oil & gas
- Unethical supply chain practices: A company identified as materially contributing to human rights and labour rights issues and controversies in their supply chain
- Animal Cruelty: A company involved in commercial factory farming or that conducts testing on animals for non-medical except for regulatory reasons
- Workplace Discrimination and Diversity: A company identified as inadequately contributing to diversity and inclusion in the workplace, and/or inadequately addressing and preventing workplace discrimination
- Remuneration: A company identified as having excessive executive remuneration practices
- Gambling: A company that generates over 5% of revenue from gambling activities
- Palm Oil: A company that produces palm oil or distributes palm oil products (but excluding the manufacture or sale of products that use palm oil as an ingredient)
- Tobacco: A company that generates over 5% of revenue from the retail sales of tobacco and tobacco products (in addition to the tobacco screen applied to the whole of fund).
- Controversial weapons: involved in the manufacture of cluster bombs, landmines, uranium weapons and chemical and biological weapons or their key parts.
- environmental sustainability and resource efficiency;
- equitable societies and respect for human rights; or
- accountable governance and transparency.
Sustainable Growth - Debt
Sustainable Growth will generally apply the same negative ESG screens applied to the Australian and Overseas Shares to corporate bond issuers and the debt allocation will be positively weighted towards green, social and sustainability bonds.
Sustainable Growth - Unlisted Property
Sustainable Growth invests in property investments which have demonstrated a score of at average or above in the Global Real Estate Sustainability Benchmark (GRESB) Real Estate Assessment, a global ESG benchmark and reporting framework for investments in real estate.
Where GRESB is not applicable, Sustainable Growth’s property investments are required to achieve a high environmental rating from a recognised green building
rating tool that is administered by a World Green Building Council (WGBC) member Green Building Council.
Sustainable Growth will favourably consider property investments that are signatories to the World Green Building Council’s (WorldGBC) Net Zero Carbon Buildings Commitment (WorldGBC Commitment).
The WorldGBC Commitment requires that all buildings within direct control of the property portfolio be net zero carbon in operation by 2030.
Sustainable Growth - Unlisted Infrastructure
Sustainable Growth invests in infrastructure assets which integrate ESG factors, contribute to the transition to a low carbon economy or which have limited exposure to climate-related transition risks.
It will exclude infrastructure investments in accordance with the Fossil Fuels screen outlined above in respect to the Australian and Overseas Shares.