The new fund, Elevate Super, has an investment approach promising to prioritise both profitability and sustainability analysis.
Based on a ranking from the company’s sustainability data provider, Sustainable Platform, the ASX 200 would have an SDG score of 50 out of 100, while Elevate Super’s balanced and growth portfolios both score 63.
The SDGs, which were agreed upon by 193 countries in 2015, aim to help end poverty, reduce inequality and combat climate change.
AtlasTrend chief executive and founder Kent Kwan said his firm is aiming to go one step ahead of ESG investing.
“ESG typically focuses on the exclusion of controversial industries such as tobacco and weapons. What we do is go beyond that with an investment portfolio that aims to have a higher net positive contribution to sustainability,” Mr Kwan said.
“We believe contribution towards the SDGs is the best mechanism to measure the social, environmental and economic impact of investments.”
According to the Responsible Investment Association of Australia’s Super Study for 2019, five funds reference the UN goals as a formal part of their responsible investing (RI) strategy at the time of research, with nine noting they would reference the SDGs in reference to their RI targets and measurement processes.
Local Government Super measured specific SDGs in unlisted assets to assess social objectives, Australian Ethical used a range of objectives in company and portfolio assessment, such as measuring revenue from company activities contributing to the goals, and AustralianSuper was working towards engaging with companies on the basis of their contributions to the UN goals.
Other funds that refer to the SDGs included VicSuper, NGS Super, HESTA, UniSuper, Cbus and Commonwealth Superannuation.
But according to AtlasTrend, many super funds have no independent sustainability frameworks and funds may invest in industries such as tobacco, weapons and gambling without members knowing, unless they proactively exclude segments in their portfolio.
The tone of the Elevate Super’s branding speaks to younger consumers, with Mr Kwan adding it is his “generation’s turn to shape the world”.
He has urged Australians to review their super and switch if they fail to align with their values.
“It is not currently mandatory for Australian super funds to provide enough detail to know whether the investment of your super aligns with your core values,” Mr Kwan said.
“Australians, particularly younger Australians, tend to view super an unimportant and ineffective asset. The reality is, our combined super investment is impactful and it’s vital that we’re comfortable our super is being used to support industries which align with our core values, while delivering competitive returns.”
