Sustainable Super

Future Group Investment Management (FGIM) defines sustainable super as an approach to superannuation investing that seeks to act in members’ best financial interests by considering sustainability-related risks and opportunities that may affect investment outcomes and the resilience of critical environmental, social and economic systems over time.

FGIM uses responsible investment strategies and tools (including negative screening, thematic investing, and stewardship) to identify, assess and manage investment exposure to risks and opportunities created by long-term changes in these systems.

Impact investments generate positive and measurable social or environmental outcomes in addition to financial returns. FGIM defines impact investments by the following criteria: the positive outcomes are meaningful, additional, and achieved by design; and appropriate metrics and data are used to effectively measure, manage and report the positive outcomes.

FGIM seeks high-quality assets with a focus on long-term financial performance, ensuring all investments work in your best financial interests – even when they deliver broader social and environmental benefits. FGIM also believes that impact investments can help reduce systemic financial risks and increase exposure to long-term growth opportunities.

Fossil fuels are carbon rich, non-renewable materials of biological origin found within the Earth's crust that can be used as a source of energy when burned. The main examples are coal, oil, and methane gas.

The investment manager sets a 0% revenue threshold for fossil fuel companies, meaning all companies found to earn revenue from owning fossil fuel reserves and/or the mining, extraction or burning of fossil fuels are excluded from the portfolio.

The investment manager also invests in climate solutions to contribute to the growth of renewable energy, clean technology and nature-based solutions – proven alternatives to fossil fuels that can be deployed at scale today.

The portfolio is regularly reviewed with relevant screens to ensure compliance.

Please see the Screening Approach and Product Matrix for more information about how FGIM screens the Future Super portfolio.

FGIM defines climate solutions as investments that address climate-related risks by reducing greenhouse gas (GHG) emissions or improving climate adaptation and resilience outcomes. Some, but not all, climate solutions investments meet the criteria of an impact investment.

FGIM draws on recognised frameworks which highlight scalable technologies and practices capable of delivering meaningful emissions reductions, including renewable energy and regenerative agriculture.

FGIM invests in climate solutions to gain exposure to long-term growth opportunities driven by global decarbonisation and help reduce systemic financial risks caused by climate change.

FGIM seeks investments that reduce inequality and improve social wellbeing. This includes investments that improve inclusive access to, and/or the sustainability of, social infrastructure and services (like aged care, healthcare, childcare, education, housing, and connectivity). Some, but not all, social equity and wellbeing investments meet the criteria for an impact investment.

FGIM invests in social equity and wellbeing to gain exposure to long-term growth opportunities driven by global demographic changes, and help reduce systemic financial risks exacerbated by inequality, poor health and wellbeing.

Superannuation is a long-term investment. The investment manager analyses structural changes in the environment, society and the economy (like global decarbonisation and digital transformation) and uses thematic investing to increase exposure to the long-term growth opportunities driven by these megatrends.

FGIM considers industries built for the long term as industries that are consistent with a more sustainable future. This includes investments that pass negative screens (which are designed to exclude investment in industries believed to carry unacceptable risks to your retirement savings and future) and/or support sustainable development outcomes – like inclusive access to renewable energy and affordable housing, gender equality, and a healthy environment.

Future Super is a division of the Smart Future Trust. The fund is legally overseen by Equity Trustees Superannuation Limited (ETSL), a corporate trustee responsible for managing the fund on behalf of members. With a board and dedicated staff, ETSL ensures everything is run with integrity and in line with regulations. Learn more about ETSL here.

Managing a super fund means looking after billions of dollars and thousands of members, while navigating strict rules and responsibilities.

That’s where Future Group Investment Management Pty Ltd (FGIM) comes in. FGIM leads the investment strategy and day-to-day management of the underlying investments supporting the Future Super portfolio.

Want to know more? See who’s involved here.