There is an approach to investment that takes into account not merely financial performance but also whether the investment contributes positively to environmental, social and governance factors (ESG). This ESG philosophy forms part of the GESB's Australian Shares portfolio and is also available as a separate investment plan in GESB Super MY Plan called, Responsible Investment - Australian Shares.

GESB has appointed AMP Capital Investors to manage the ESG segment according to its Sustainable Alpha Investment process.

When deciding whether to buy, hold or sell shares, AMP Capital focuses on labour standards, and environmental, social, governance and ethical considerations. Each company is ranked according to the sustainability of its industry, and the company's own corporate social responsibility performance.

The SRI Philosophy

• Seek out industries of the future which are socially and environmentally sustainable (eg education, health, renewable energy). 
• Exclude industry sectors judged to be socially or environmentally unsustainable. (Currently companies with material exposure to alcohol, strategic armaments, gambling, nuclear power, pornography and tobacco).
• Identify leaders in traditional sectors who take a leading and proactive approach to community, workplace, governance, environmental and business ethics issues.
• Engage constructively with companies to tackle social and environmental challenges.
• Require companies to also meet financial performance criteria to qualify for inclusion.

The Investment Manager manages the research and selection of companies in GESB's Responsible Investment - Australian Shares option. Their stock selection criteria may change at any time without prior notice to members.

What you should consider

Consider a number of factors before you choose this investment plan, including:

• Responsible Investments products have a relatively short track record, particularly in Australia, so they have a limited history of performance compared to traditional share strategies. 
• Responsible Investments require an additional layer of research and monitoring to ensure that they comply with the guidelines, and the size of funds under management in these products is generally low. As a result, higher investment management fees may be charged.

As always, we recommend that you speak to a qualified financial adviser before you make a decision to invest.