While Catholic Super will always strive to achieve the best investment returns, it will do so responsibly.
Our approach to responsible investment:
Catholic Super was one of the first to adopt the Principles of Responsible Investment (PRI).
To achieve these objectives, the Fund works with other investors to establish a constructive dialogue with corporations to ensure that they are properly managing their environmental, social and governance (ESG) risks. Being mindful of ESG principles lowers the overall level of risk and helps ensure long-term sustainability. Some of these risks include:
Climate change risks and opportunities
The Fund believes that climate change is a major, systemic risk that could destabilize global economies and investment markets to a significant degree. In addition to systemic risk, there will be winners and losers at the national, regional and individual company and asset level. Consequently, institutional investors like us need to be vigilant and proactive in assessing and managing these risks as part of their fiduciary duty to members.
Public policy action is needed to achieve the global policy commitments and efforts to limit the increase in global world temperatures to no more than 2 degrees Celsius above the pre industrial average. Indeed, the Fund believes that a +2 degree outcome would still pose a significant economic, social, environmental and investment risk and is supportive of more ambitious targets and efforts by policy makers to stay below this level.
The Fund believes that the global climate change mitigation (emissions reduction) commitments from governments, companies, investors and civil society will support ongoing actions around the world to reduce carbon emissions and improve energy efficiency, with a high degree of variability and uncertainty as to the outcomes of these actions across different regions, countries, asset classes and companies that will need to be assessed and managed.
We manage these risks and capture the opportunities through a number of ways, including:
Collaboration and ESG engagement
In Australia we are members and support the engagement and research efforts of
Internationally, Catholic Super utilises the Reo engagement service provided by the Bank of Montreal (formerly F&C)