2025 Annual Member Meeting questions and answers

If GESB is moving to a net zero investment policy, will it cease holding Woodside shares?

Our commitment to achieving net zero carbon emissions by 2050 does not currently involve divesting from companies solely because of their involvement in oil and gas projects, including Woodside. Our approach focuses on managing climate-related financial risks by gradually reducing our exposure to carbon emissions within our investment portfolio while acting in the best financial interests of our members.

When assessing exposure to oil and gas, we use the Global Industry Classification Standard (GICS) for Oil, Gas and Consumable Fuels. This classification includes companies engaged in oil and gas exploration and production, as well as coal and other consumable fuels used for energy generation. Companies such as Woodside fall within this category, while diversified miners like BHP Group do not. As at 30 June 2025, approximately 3% of our combined Australian and International Shares portfolio was invested in companies within this GICS classification.

We recognise that climate change poses material risks to long-term investment returns, including transition risks such as stranded assets. These risks arise as the global economy moves toward decarbonisation, which can reduce the attractiveness of carbon-intensive assets. Our strategy to manage these risks involves gradually reducing the carbon intensity of our investment portfolios, while maintaining strong financial outcomes for members.

Earlier this year, GESB agreed to a phased reduction in thermal coal exposure by 2030. The implementation of this strategy has commenced via an investment manager within our Australian shares portfolio. Thermal coal is considered one of the most carbon-intensive sectors, and transitioning away from it aligns with a net zero pathway. This applies to companies deriving 15% or more of revenue from thermal coal mining. As at 30 June 2025, our exposure to these companies was 0.6% of our Australian Shares portfolio.

We will continue to evolve our approach to climate risk and portfolio decarbonisation, guided by our commitment to act in members’ best financial interests. For more details on our climate strategy and actions, please read Our climate change actions.

Is GESB moving away from holding shares in oil and gas companies?

Will GESB commit to cease funding for fossil fuel industries such as the expansion of gas extraction from WA's Northwest Shelf recently extend till 2070 requiring companies like Woodside to raise more funds. Climate change aside, from a purely economic point of view, gas extraction (like coal today) will be a stranded asset in the not too distant future. How will GESB protect their superannuation customers from stranded assets and the financial losses that will occur from global efforts to de-carbonize?

I would like to ask if GESB has plans to divest from pokies related investments, including manufacturing, and if not, how does GESB justify to its members that investments in pokies meets ESG and responsible investment policy?

GESB does not have a portfolio-wide exclusion to avoid investments in companies involved with the gambling or gaming industry.

Our ESG and Responsible Investing Policy outlines our beliefs and approach to considering ESG factors within our investment process – including what factors we take into account when determining whether to exclude a particular company or industry.

Across our entire portfolio, we do not currently invest directly in tobacco companies, controversial weapons and nuclear weapons (through the ownership of shares and bonds). The policy provides details on how we define each of these industries.¹

We will only exclude a company or issuer if it meets the definition stated in either the policy or relevant disclosure documents. Thresholds for each industry exclusion have been adopted only after careful consideration of investment diversification and risk to ensure investments in the plan continue to meet stated objectives.

Where an ESG factor is relevant to an investment, we expect our appointed investment managers to understand and assess the associated risks and opportunities when evaluating an investment, and to engage with company management to ensure that ESG issues are managed effectively and good ESG practices are in place.

Our Sustainable Balanced investment plan applies a broader range of exclusions, including gambling. This is because exclusions form a key part of its investment strategy. The plan aims to avoid exposure to companies whose business activities negatively impact the environment and society.

For more information, including the specific exclusions applied to the Sustainable Balanced plan, please read the Sustainable Balanced investment choice page.

What percentage % of investment by GESB is focused on renewable energy companies?

We recognise the importance of a responsible transition to a low-carbon economy and the investment required to support this.

This will come in many forms – it may be through investing in:

• Technologies that are going to help us transition
• Sectors that are already part of the solution, such as renewables
• Solutions that will help us adapt and mitigate the risks of climate change, such as energy efficiency initiatives

Investments will only be made when it is in the best financial interest of members.

Our portfolio has exposure to various opportunities in the Listed Securities and the Corporate Bonds we invest in, as well as the Unlisted assets we own.

Within our Unlisted Infrastructure asset class, we invest in wind, solar, renewable natural gas and investments in energy transition projects that use more efficient technologies, promoting energy savings and supporting the use of low-carbon alternative fuels, such as renewable natural gas (biofuels).

For example, our investment in Morrison Infrastructure Partners portfolio has 6% (approximately $37 million of GESB’s portfolio) invested in Chrysalis Renewables.

What gave the Board the mandate to peruse net zero investment strategies and how is this in the best interests of maximising members returns?

The Board is responsible for the overall governance, compliance and performance of the investment portfolio, including setting the overall approach to managing climate change risks and opportunities.

We believe that committing to net zero aligns with the Board’s role and responsibility to manage assets for our members’ long-term financial benefit.

Our consistent and competitive long-term investment returns² demonstrate that the Board is acting in members’ best financial interests.

Annual stress testing continues to show that climate risks could impact financial outcomes if not managed. Our net zero goal helps us focus our investment activities to manage this risk, in a considered way.

In the past few months there has been a parabolic rise in the price of gold. A number of global investment companies have stated that, given a reduction in confidence in fiat currencies, they are recommending a rebalancing of investment portfolios to include exposure to gold. What is GESB’s view of this?

Across our Readymade plans, we invest in a range of assets that aim to achieve our investment objectives. This includes defensive assets.

Our portfolio does have an indirect exposure to gold through gold companies, and a range of risk-mitigating strategies such as holding cash, bonds and a diversified exposure to other assets.

We invest in line with Treasurer’s Prudential Guidelines for Investments, which does not include physical gold in the kinds of investments the Board can make.

Given that the Gold State super fund is over funded, what options does the government have in terms of using this surplus for the benefit of its members. Secondly, why did the government decide not to allow for partial withdrawals from the Gold State Scheme for retired members (deferred scheme)?

Gold State Super is a lump sum defined benefit scheme. The benefit payable to members is prescribed in the State Superannuation Regulations 2001 and is guaranteed by the State Government, which means obligation and liability lies with the State. The assets managed by GESB support the State’s Gold State Super liabilities.

Although the funded portion of the scheme is currently in surplus, the Gold State Super scheme is not over funded; the funded portion is in surplus and within a buffer range to manage investment risks. Each year, an actuarial evaluation of the Gold State Super scheme is undertaken to ensure that the size of any surplus in the funded portion of the scheme remains appropriate over time.

As Gold State Super was designed to be a lump sum benefit scheme, it has never provided for partial withdrawals after retirement. This is because it is not a retirement product.

However, members may transfer their lump sum benefit to an accumulation scheme, like GESB Super, or a retirement product, such as GESB’s Retirement Income (RI) scheme, to make partial withdrawals. As a retirement product, GESB’s RI scheme also provides a tax-free pension.

Deferred members who are still working in the WA public sector (at least 10 hours a week) can make partial withdrawals from the age of 65.

Will there be an option in the future to open child accounts?

This is not something GESB has explored and there are no immediate plans to conduct a feasibility assessment on this type of enhancement.

We want to make sure any new product features benefit the majority of our members, so will only assess changes that we believe to be in the best financial interests of members.

When does GESB expect to advise members on the impact of the revised DIV296 superannuation tax proposal? Despite the legislation not yet passing, there should be enough information available now to at least provide some guidance, which is particularly necessary for those with one or both of the untaxed funds GESB offers, i.e. Gold State (both active and deferred) and West State Super, both individually and in combination.

Consultation with the Australian Government, GESB and other public sector funds is ongoing to determine the impact to GESB members.

Once the Australian Government has finalised its position with regards to untaxed schemes, GESB will provide information and guidance to Gold State Super and West State Super members.

We understand members need to be kept informed of these changes and will update you when we can.

Can my non-government employed children join GESB?

Unfortunately, no. To join GESB, you need to be a WA public sector employee or the spouse of a member. This is due to legislation and scheme design.

Is there a capital gains tax event when switching between Create your own mix plans and Readymade plans?

No. Switching investment plans does not trigger a capital gains tax event.

Unit prices are calculated net of investment fees and taxes, so you do not need to pay any additional tax.

Does GESB have a policy on family and domestic violence and extra support for victims?

GESB has a Vulnerable Members Policy, which includes support for victims of family and domestic violence.

Our dedicated reception service is designed to help members in vulnerable situations and can provide one-on-one, face-to-face support. This includes assisting members in applying for financial hardship payments and helping to protect the privacy of their superannuation information.

Our member services consultants are trained to identify, support and engage with someone who is experiencing family and domestic violence.