BDS Investment Update
UPDATES:
Future Super no longer has any exposure to Alstom SA. You can find information about all of Future Super's investments here.
Future Super’s team has reviewed any investments that have operations in the Occupied Palestinian Territories (OPT).
As part of this work, the team has contacted HP Inc, Expedia, Booking Holdings (which owns Booking.com) and are engaging with them.
Engagement is a process that takes time. We understand that this can be frustrating. Why the process? As a responsible investor for all of our members' retirement savings, the investment team has to follow a thorough process and engage and liaise with multiple stakeholders. This takes time to ensure all actions taken are in the best interest of members.
Screen approach for companies operating in Occupied Territories
Future Super’s investments are subject to a set of clearly documented negative screens. Any companies that fail these are ruled out of potential investment exposure. Some screens that are relevant to this issue include screens that block investment in weapons companies and companies that have documented contracts with military forces that make up a significant portion of their revenues.
Campaigners have flagged four companies Future Super’s investment portfolio is exposed to as having current or historical activities in the Occupied Palestinian Territory (OPT). All four are under active review.
Update: An assessment of these companies
HP Inc. and HP Enterprises
In 2015, HP (Hewlett-Packard) split into two entities: HP Inc. and HP Enterprises.
HP Inc. previously supplied personal computers to military and security agencies. The latest advice from the company is that this contract has been terminated. Future Super only has exposure to HP Inc. and the investment team will continue to monitor and engage with them. Future Super does not have exposure to HP Enterprises.
Expedia and Booking.com are travel companies with a global footprint that have some travel services in certain parts of OPT.
They do not fail the negative screens, however, the team has been engaging with them to gain insight into their approach to operating in conflict zones.
Alstom SA is involved in building trains and railways. Alstom is invested in through a fund that seeks exposure to companies supporting the transition to a net zero economy.
Engagements are planned with Alstom to understand how they are assessing and mitigating risks connected to their current activities.
What is “engaging”?
When we say the investment managers are engaging, we mean they are talking to the company and getting all the facts together. This information is important to make sure Future Super continues to act as responsible investors for members’ retirement savings.
We understand this can be frustrating to hear when you want action, but we need to be sure investment decisions are made in line with these screening processes and in the best interests of our members.
As shareholders, investors have the ability to reach out for information and to apply pressure on companies to make sure their actions align with our values.
Being a shareholder also gives investment managers the power to escalate responses, such as by divesting, if they are assessed to no longer be an appropriate investment. Engaging is the best way to build a full picture of a company’s activities so those decisions can be made.
When our members reach out to us on issues like this, we take it seriously. We’re providing this information about the companies your super is invested in in order to be transparent, and to clear up some misinformation that we understand has been shared on social media.