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.
<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
Description
1. ESG integration, which is the inclusion of ESG factors into the investment process for risk/return reasons. Mercer scores managers abilities to integrate ESG factors into their strategies using their ESG Ratings criteria between an ESG1 (best) and ESG4 (worst). The portfolios aim to employ managers ESG3 and above where practical, with the aim of improving the portfolios overall ESG score over time.
2. Active ownership, Mercer's Sustainable Investment Manager runs a dedicated direct company engagement program with the top twenty Australian holdings, over and above the engagement managers are doing with companies, and the engagement we undertake with our managers and through collaborative initiatives.
3. Sustainability-themed exposures: The growth oriented KiwiSaver products with have a allocation to the SR Overseas Shares fund which has managers that incorporate the Sustainable Development Goals as a direct input to their portfolio construction process. The KS products with exposure to Unlisted Infrastructure and Unlisted Property which endeavour to invest in assets with sustainable attributes
4. Excluded investments include the following:
• Tobacco - Companies involved in the manufacture and/or production of tobacco products (regardless of revenue), including subsidiaries and joint ventures, as well as any other company that derives 50% or more of revenue from other tobacco-related business activities such as packaging, distribution and retail of tobacco products.
• Controversial weapons: Companies that manufacture whole weapons systems, or delivery platforms, or components that were developed or are significantly modified for exclusive use in cluster munitions, anti-personnel landmines, biological or chemical weapons, as well as companies involved in the production and retailing of automatic and semi-automatic civilian firearms.
• Russian securities*, which include:
- Shares – By country of incorporation. For publicly held companies within the country of incorporation where the security also has a primary listing in Russia plus subsidiary mapping.
- Fixed income – Issuers captured in shares screening (as above) plus Russian sovereign bonds and bonds issued by Russian government-related entities (Rouble or foreign currency denominated).
- Cash holdings in Russian currency.
- Russian FX exposure.
- Sanctioned Russian entities and related entities of sanctioned entities.
- Private markets assets domiciled in Russia.
- All secondary issues of excluded securities.
- Derivatives having Russian asset as primary exposure.
*We have instructed our appointed investment managers to divest any existing exposure to Russian securities as market conditions allow and to prohibit any new investments in Russian securities.