Socially Responsible
Investment (SRI) –
Defensive

Fossil fuels
Companies that own reserves, explore, mine, extract, produce, refine or generate energy from fossil fuels as well as those companies that receive revenue from servicing these sectors through equipment services, pipeline transport or distribution. Seeks to apply a zero-materiality threshold, but dedicated renewable energy generators with backup fossil fuel sources (<5%) may remain investible. Data is supplied by Morgan Stanley Capital International (MSCI) and Institutional Shareholders Services (ISS) Inc.

Companies that breach Human Rights or Labour Rights standards
Companies that breach the United Nations (UN) Global Compact or International Labour Organisation’s (ILO) Core Conventions. Data is supplied by Morgan Stanley Capital International (MSCI).

Companies with very poor ESG policies and systems
Companies with a MSCI ESG rating B or CCC.

Controversial weapons
Companies involved in the development, production, maintenance or sale of controversial weapons (including cluster munitions, antipersonnel mines, depleted uranium, biological weapons, chemical weapons, blinding laser weapons, non-detectable fragment weapons, incendiary weapons and nuclear weapons). Involvement includes companies directly involved as well as prime-contractors, key subcontractors, and suppliers of key components. Data is supplied by ISS.

Uncertified palm oil
Companies involved in growing, processing or using palm oil, that derive >10% of their revenue from these activities and where <50% of the palm oil is Roundtable on Sustainable Palm Oil (RSPO) Certified. Data is supplied by ISS.

Predatory lending
Companies involved in predatory lending, including unfair or deceptive products, excessive interest rates, misleading marketing, inclusion of unnecessary costs and hidden fees and those targeting minority, low income or elderly consumers. Data is supplied by ISS.

For-profit detention
Companies deriving >5% of their revenue from for-profit detention e.g. prisons and immigration detention. Data is supplied by ISS.

Gambling
Companies deriving >5% of their revenue from gambling. Data is supplied by MSCI.

Tobacco production
Companies that manufacture tobacco products, such as cigars, blunts, cigarettes, e-cigarettes, inhalers, beedis, kreteks, smokeless tobacco, snuff, snus, dissolvable and chewing tobacco. This also includes companies that grow or process raw tobacco leaves. Data is supplied by MSCI.

Live animal export
Companies involved in the export of live animals for the purpose of slaughter, husbandry and breeding, including specialised transportation. Data is supplied by ISS.

To develop our Socially Responsible Investment (SRI) options, we partnered with specialist external investment managers. 

Hostplus or its investment managers also source sustainable investment data from external service providers (Institutional Shareholder Services (ISS) Inc and Morgan Stanley Capital International (MSCI)). 

Decisions about the selection, retention or realisation of investments, particularly for listed assets, apply a rules-based approach and may therefore be affected by the accessibility and accuracy of data or an error by an external service provider. This may result in inadvertent holdings, typically over the short-term, in companies or assets the investment options seek to avoid. 

While the options invest with managers through mandates or fund-of-one structures wherever possible in order to adhere fully to the above rules, there will be circumstances where the options invest in pooled funds. In such circumstances, we cannot set the specific filter criteria, but will aim for the closest fit to the criteria in selecting a pooled fund.

More information on our Socially Responsible Investment (SRI) options can be found on our website at hostplus.com.au/about-us/company-overview/investment-governance.