Our approach Our approach to responsible investment is to ensure that we consider the long-term risks and opportunities of our investments to safeguard and enhance our Human, community, Climate change members retirement savings. and labour rights We take a ‘whole of fund’ This is the second year that Cbus Key actions: approach and apply the same has reported against the Modern responsible and sustainable Slavery Act which aims to increase • appointed a dedicated resource principles to all investment business awareness of and reduce to aid in developing proprietary decisions regardless of whether modern slavery risks, in the production research and undertake much it is managed internally by the and supply chains of Australian goods of our climate modelling internally Cbus Investments Team or and services. The Act focuses on • reinforced our support for the through an external fund manager. transparency and aims to inform Paris Agreement with the setting external stakeholders like our of two targets which is to reduce Our areas of progress members, about what we are doing absolute portfolio emissions Some of our most significant to mitigate the risk of slavery. by 45% by 2030 and to achieve progress has been achieved in net- zero emissions by 2050 relation to our management • joined the Investor Group on of climate change risks and Key actions: Climate Change (IGCC) Climate opportunities, increasing our • Cbus joinedInvestors Against League 2030 which is a ten-year focus on direct engagement with Slavery and Trafficking Asia Pacific initiative to support and act towards companies and the enhancement (IAST APAC) which is an investor-led a further Australian emissions of our approach to integration. initiative that has been convened to reduction of at least 230 million Some of our key areas of engage with companies in the Asian tonnes a year by the end of focus are: Pacific region to promote effective the decade action among them to find, fix and • conducted scenario analysis prevent modern slavery, labour to enhance understanding exploitation and human trafficking of climate change risks and • Cbus is co-chair for Australian opportunities and address asset Council of Superannuation Investors' stranding. This work will be used (ACSI) Rights and Cultural Heritage to identify how the Cbus portfolio Workplace safety Risk Management Working Group. might decarbonise over time Over the past year the focus of the • setting and measuring our working group has been on educating baseline emissions, so that we can Key actions: ourselves and other investors, measure our progress over time • we engaged directly with a range engaging with stakeholders and • i ncreased our allocation to of companies on safety disclosures, better understanding existing climate opportunities with further including where companies do not practices and challenges across investment made disclose any information about safety the market. The aim is to create tools • improved risk management performance and where they had for improved risk management for investors and those we invest in. • continued to exercise our voting disclosed a fatality within the last rights and engagewith our highest two years carbon emitters through Climate • we actively engaged an external Action 100+, ACSI and Federated infrastructure manager to better Hermes EOS globally. understand the circumstances of any fatalities and receive reports on significant safety incidents, and worked collaboratively to identify areas for improvement and share knowledge. Annual Integrated Report 2021 49