OUR SUSTAINABILITY:

Our sustainability journey

The Fund’s commitment to ESG considerations is integral to our operations. We are dedicated to improving lives for our members, customers, and communities by anticipating and managing ESG matters. Our goal is to drive meaningful action on sustainability, setting a standard for fostering a thriving society and promoting economic growth for a greener future.

As a Public Interest Entity, the Fund is uniquely positioned to demonstrate its purpose beyond providing annual returns. This has led to a comprehensive review of our sustainability actions and reporting, necessitating a cultural shift towards a long-term, impactful view on sustainability.

Voluntary disclosure

The review of the Fund’s sustainability journey within the reporting ecosystem revealed that the Fund falls in the category of Voluntary disclosure. This commitment to transparency enhances our understanding of ESG performance and allows us to report our activities effectively. With a growing awareness, the Fund has placed significant emphasis on building capacity to strengthen the reporting ecosystem.

Key areas of focus

To support our ESG initiatives, we focus on several key areas:

Governance, policies, and processes: Implementing robust governance structures and policies that align with our sustainability goals.
Holistic ESG integration: Integrating ESG factors comprehensively across all aspects of our operations.
Sustainability across the investment value chain: Embedding sustainability considerations into our investment processes.
Measurement and reporting: Developing systems to measure sustainability risks, impacts, and performance, and producing high-quality annual sustainability reports.
Partnerships: Collaborating with peers and international initiatives to enhance our ESG efforts.

Advisory engagement

To further guide our journey, we engaged with an external advisor to explore sustainable practices. This engagement focused on:

Review of values and mission: Advising on new terminology and frameworks reflecting our sustainability commitment.

Strategic plan evaluation: Identifying opportunities to drive our sustainability agenda.

Governance and policy development: Supporting the creation of policies and processes for effective implementation of sustainability initiatives.

Investment value chain integration: Advising on integrating sustainability throughout our investment activities.

ESG core team formation: Establishing a dedicated team to manage ESG efforts.

Measurement metrics: Developing metrics to assess ESG risks, impacts, and performance.

Sustainability reporting: Assisting in creating an annual sustainability report to document our ESG activities and progress.

Methodology and findings

Our review utilised various sustainability reporting frameworks, standards, and protocols, focusing on ESG themes. The process involved:

Phase 1 - Baselines and materiality assessment:

Reviewing existing documents and conducting a materiality assessment to identify key sustainability issues. This phase included literature reviews, interviews, and discussions to understand the ESG landscape and benchmark against global practices.

Phase 2 - Setting goals and targets:

Engaging with our team and Board to define goals and targets, refining our sustainability blueprint based on identified issues and emerging insights.

Phase 3 - Strategic road map:

Synthesising findings to develop a strategic framework for sustainability, aligning with our long-term goals and objectives.

Understanding the sustainability reporting ecosystem

To navigate the reporting ecosystem, we identified its components:

Frameworks: High-level guidelines for identifying, assessing, and reporting sustainability issues. Examples include the Global Reporting Initiative (GRI), Sustainability Accounting Standards Board (SASB), and Task Force on Climate-related Financial Disclosures (TCFD)
Standards: Detailed guidelines building on framework principles, outlining precise requirements for reporting specific sustainability topics
Protocols: Tools, methodologies, or instructions for measuring, monitoring, and reporting sustainability performance in line with frameworks and standards

Integrating frameworks, standards, and protocols enhances the credibility, transparency, and impact of our sustainability reporting.

Reporting recommendations

Adopt the Integrated Reporting Framework with ISSB standards (IFRS S1 and IFRS S2) for subsequent reporting
Conduct a comprehensive materiality assessment using the double materiality concept, engaging stakeholders to measure performance based on set targets
Focus on impact rather than activity or input to refine our sustainability blueprint
Ensure our materiality assessment covers all potentially relevant ESG topics

Way forward

Next steps	Action	Progress to date	To be completed by
1. Target Setting	Refine sustainability targets and objectives through further discussions across departments	Scorecard setting commenced FY24-25	June 2025
2. Materiality assessments	Conduct comprehensive assessments every two to three years, with periodic reviews	Internal assessment complete	External assessment to be completed during the next 12 months
3. Training and development	Enhance knowledge and skills related to sustainability for our Board and team	In the next 12 months	June 2025
4. Process and governance design	Develop streamlined processes and governance structures to support sustainability efforts	In the next 12 months	June 2025
5. Central ESG team	Create a dedicated team to coordinate and innovate sustainability initiatives	In the next 12 months	June 2025
6. Performance Metrics	Establish specific metrics to track and manage sustainability performance	Scorecard setting commenced FY24-25	June 2025

By focusing on these areas, the Fund aims to create a significant positive impact through our sustainability efforts, ensuring effective contributions to our communities and environment while maintaining transparency and accountability in our reporting.

A NEW DAY - CREATING SHARED VALUE FOR SUSTAINABLE GROWTH

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