Update: Action taken in relation to companies of concern in Occupied Palestinian Territories

At Future Super, our investment approach is informed by strong ethical screens, that seek to ensure our members’ money avoids harmful investments. A key part of this commitment is listening to global human rights concerns.  

In this article, we share how Future Super is responding to companies that have been identified by the United Nations as supporting Human Rights  abuses and/or war crimes in Occupied Palestinian Territories (OPT) - including an update on reviews of these companies and the actions taken to ensure Future Super investments remain aligned with our mandate and the expectations of our members.   

Background on Future Super’s screening approach

A rigorous set of clearly defined negative screens are applied to all Future Super investments, this includes screens relating to: weapons, military sales, and human rights abuses.  

Companies that fail to pass Future Super screens are excluded from the investment holdings. Thanks to these ethical screens, Future Super members have no exposure to the vast majority of companies commonly identified by UN human rights bodies as being complicit in human rights abuses or war crimes in OPT.   

Companies of concern

Most of the companies that are listed in the UN Human Rights Commissioner (OHCHR) current database have never been included in Future Super’s investment portfolio.   

Campaigners have identified five companies of concern, either currently or previously held in Future Super’s portfolio. 

Future Super is concerned by the actions of all five of these companies and flagged all for review. Below is a summary of the review process and the current status of each company.      

HP Inc. and HP Enterprises    

HP split into two companies in 2015. Future Super has no exposure to HP Enterprises. HP Inc. previously supplied personal computers to military/security agencies, but through our engagement with them they have advised this contract has ended. We are currently satisfied that they don’t breach our weapons screen and that their current practices do not warrant divestment. We continue to monitor the company.  

Our current position: Satisfied with response of HP Inc. Not invested in HP Enterprises. Will continue to monitor.   

Airbnb  

Airbnb is a travel company with listings in OPT. Our Investment Managers have had extensive discussions with Airbnb and remain dissatisfied with their stance. At one point they announced plans to remove listings in settlements on OPT land but reversed this after legal and political pressure. They have stated that they now donate profits from West Bank listings to humanitarian organisations, however this does not address our core concerns.   

Our current position: Unsatisfied with response. None of your super is invested directly with this company and a process of engaging with third party fund/s that hold this asset indirectly has been initiated by our investment managers.  

Expedia  

Expedia is a travel company with listings in OPT. Our Investment Managers have actively engaged with Expedia to understand their position and express our concern.    

Our current position: Unsatisfied with response. None of your super is invested directly with this company and a process of engaging with third party fund/s that hold this asset indirectly has been initiated by our investment managers.   

Booking.com  

Booking.com is a travel company with listings in OPT. Our Investment Managers have actively engaged with Expedia to understand their position and express our concern.  

Our current position: Unsatisfied with response. None of your super is invested directly with this company and a process of engaging with third party fund/s that hold this asset indirectly has been initiated by our investment managers.   

Alstom SA  

Altom SA is involved in building trains and railways, and involved in light rail connecting Jerusalem to the OPT.   

Our current position: None of your super is invested, directly or indirectly, in this company. We have fully divested.   

Why hasn’t Future Super fully divested from some of the companies listed above?   

Some of your super is invested directly into companies and some is held in managed funds and/or ETFs.   When funds are invested directly a divestment decision is made solely by Future Super’s Investment Managers. As stated, none of your super is directly invested in the five companies mentioned above.    

However, investments that are held through third party managed funds and ETFs are exposed to some of the companies listed above.   A process has now begun to engage with the managers of these funds.   

Divestment from investments held through third-party funds is a longer process, as it must be reviewed, decided, and carried out by the fund managers of those funds.   

We understand that this may disappoint some of our members, however please be assured we are focused on this issue.   

While Future Super members continue to be exposed to these three companies of concern, we are continuing to engage with them.   

What is “engaging”?    

When we say the investment managers are engaging, we mean they are in discussions with the company, this may include: gathering facts, expressing concern about existing practices, and/or warning them that divestment may occur before a divestment process is initiated.    

This process is important to make sure the Investment Manager continues to act as a responsible investor for Future Super members’ retirement savings and that we meet our ethical screening investment mandate.    

Engagement also helps ensure that the issue remains on the radar of the companies we speak with. It is a powerful signal for them to consistently hear that their investors are concerned and care deeply about this matter.     

We understand how important this topic is to many of our members. That’s why we want to be as transparent as possible about the processes we are undertaking.