The $24 billion superannuation fund has hit its target to deliver $3 billion in sustainable outcomes a year ahead of schedule.
Releasing its annual report earlier this week, VicSuper revealed it reached the "ambitious" target - which represents about 12% of its entire portfolio - a year early, while also claiming to have aligned member outcomes to eight of the United Nations' Sustainable Development Goals (SDG).
The announcements form part of VicSuper's attitude towards transparency, which includes reporting on how the fund contributes to "broader societal outcomes" such as action on climate change.
The fund can now show members how their retirement savings support the SDG goals, including a dollar contribution on each SDG across the fund's equity portfolio and several assets, such as low carbon equities and solar.
|Sponsored by MetLife Insurance|
Do your clients understand how commissions work?
VicSuper chief executive Michael Dundon said that as community expectations grow, super funds need to have a clear strategy to not only deliver on their goals, but also to report on their achievements .
"Transparency is essential. It's no longer enough to talk to your process - funds need to talk to outcomes," Dundon said.
"With the superannuation sector managing close to $3 trillion, its essential funds report on where that money is invested, what impact those investments are having on society, and whether that meets our community's growing expectations of responsible investment.
"As our funds under management grows, so does our responsibility to the broader society, above and beyond providing our members with the best possible retirement outcomes. We can do both."
According to the fund, the combination of its "rigorous ESG process" and active company engagement and voting approach prove investing for sustainable outcomes can provide consistent and competitive returns.