Responsible investing
The way your money is invested can reflect more than your financial goals.
Invest the way that feels right for you
Responsible investing can involve excluding certain investments or considering environmental, social and governance (ESG) factors when making investment decisions.
Across Smart, our funds take different approaches to responsible investment. This gives you choice alongside other important considerations such as risk, timeframe, diversification and fees.
3 approaches to responsible investing
For investors who want certain companies and activities excluded.
Our principle-based funds apply defined socially responsible investment (SRI) exclusions.
Depending on the fund, these can include controversial weapons, civilian firearms, tobacco and some fossil fuel activities.
Some of principle-based fund have additional responsible investment features. For example, the index tracked by our Overseas Shares funds targets at least a 30% reduction in carbon emissions intensity compared with its parent index.
For investors focused primarily on a fund's investment objectives and strategy.
These are funds do not apply Smart's responsible investment exclusions or ESG screening.
Investment decisions are based on the objectives and investment strategy of each fund rather than ESG criteria.
How responsible investing works
Responsible investment can be applied in different ways.
Socially Responsible Investment (SRI) exclusions are about what a fund avoids. A fund may exclude companies involved in certain activities, such as tobacco, controversial weapons or some fossil fuel activities.
Environmental, Social and Governance (ESG) screening considers factors that may affect a company's long-term sustainability and resilience. These factors could result in excluding, limiting or increasing exposure to certain companies.
These can include greenhouse gas emissions, labour standards, human rights practices or corporate governance.
Responsible investment in practice
Our approach goes beyond choosing investments. We assess the responsible investment practices of external investment managers we appoint and use shareholder voting rights to support responsible corporate behaviour.
