Your Sustainable Balanced investment choice
We understand that sustainable investing is important to our members. That’s why we offer GESB Super, West State Super and Retirement Income Allocated Pension members the choice of a Sustainable Balanced investment option.
While our other investment options aim to exclude companies that manufacture or have ties to tobacco, controversial weapons and nuclear weapons1 the Sustainable Balanced option enhances our responsible investing approach by enabling members to invest through a stricter environmental, social and governance (ESG) lens.
Choosing this option allows members to further manage their exposure to certain industry sectors while invest in companies whose activities aim to support activities and projects that help contribute to a more sustainable future.
About the Sustainable Balanced option
The Sustainable Balanced option is a Diversified option, which means it includes a mix of asset classes selected to meet a set return target. This option is managed by a single investment manager, Pendal.
The exclusions Pendal apply to the Sustainable Balanced option are an extension of those we apply across our whole portfolio. This means that the option invests in industry sectors, companies or issuers based on sustainability characteristics and exclusions that are not generally applied to our other investment options.
The option is available for GESB Super, West State Super and Retirement Income (RI) Allocated Pension members.
Fees and more information
For details on investment objectives, fees and risk information, read the Sustainable Balanced option dashboard relevant for your specific product.
GESB Super Sustainable Balanced dashboard
West State Super Sustainable Balanced dashboard
Retirement Income Allocated Pension Sustainable Balanced dashboard
What the Sustainable Balanced option invests in
The Sustainable Balanced option invests in Australian and International Shares, Australian and International Listed Property, Australian and International Fixed Interest, Cash and Alternative investments.
The sustainability characteristics considered by Pendal may result in some industry sectors, companies or issuers being excluded from the portfolio. These sustainability characteristics and exclusions apply to investments within Australian and International shares, Australian and International Fixed Interest and parts of Alternatives. They do not currently apply to Australian and International property, parts of the Alternatives asset classes and certain financial instruments such as government securities2, derivatives and cash.
The use of exclusions means the Sustainable Balanced investment option manages exposure to companies and issuers with significant involvement in activities considered by Pendal to negatively impact the environment or society.
Exclusions are applied differently across these asset classes.
Download the full list of what the Sustainable Balanced option invests in.
Managing exposures through exclusions
By adopting exclusions, the Sustainable Balanced option aims to exclude some types of companies or issuers that are materially involved in certain activities.
In most cases, materiality is measured by the revenue the company receives from the activity. Pendal uses external data sources to determine this measure.
Below is a summary of the exclusions adopted within our Sustainable Balanced option and how they vary across asset classes.
For full details, including how these exclusions apply to each specific asset class, read the documents below.
- GESB Super and West State Super Sustainable Balanced options:
- RI Allocated Pension Sustainable Balanced option:
Exclusions
The Sustainable Balanced option aims to exclude companies and issuers that:
Australian Shares
- Produce tobacco (including e-cigarettes and inhalers), or
- Derive 10% or more of their gross revenue from the distribution of tobacco (including e-cigarettes and inhalers), or
- Derive 10% or more of their gross revenue from the supply of goods or services specifically related to the tobacco industry (for example, packaging or promotion)
International Equities, Australian Fixed Interest, International Fixed Interest and a portion of Alternatives
- Produce tobacco (including e-cigarettes and inhalers)
Australian Shares
- Manufacture or distribute controversial weapons (including cluster munitions, landmines, biological or chemical weapons, blinding laser weapons, nuclear weapons, depleted uranium weapons, incendiary weapons, non-detectable fragments, and white phosphorous weapons), or
- Supply goods or services specifically related to controversial weapons, or
- Manufacture non-controversial weapons or armaments (including civilian firearms or military equipment), or
- Derive 10% or more of their gross revenue from the distribution or retailing of non-controversial weapons or armaments (including civilian firearms or military equipment), or
- Derive 10% or more of their gross revenue from the supply of goods or services specifically related to non-controversial weapons or armaments
Australian Fixed Interest
- Manufacture controversial weapons (including cluster munitions, landmines, biological or chemical weapons, blinding laser weapons, nuclear weapons, depleted uranium weapons, incendiary weapons and/or nondetectable fragments), or
- Derive 5% or more of their gross revenue directly from the manufacture of non-controversial weapons or armaments
International Shares, International Fixed Interest and a portion of Alternatives
- Manufacture controversial weapons (including cluster munitions, landmines, biological or chemical weapons, blinding laser weapons, nuclear weapons, depleted uranium weapons, incendiary weapons and/or non-detectable fragments), or
- Derive 10% or more of their gross revenue directly from the manufacture of non-controversial weapons or armaments
Australian Shares
- Directly extract or explore for fossil fuels (specifically, coal, oil and gas), or
- Derive 10% or more of their gross revenue from fossil fuel-based power generation, or from fossil fuel refinement or distribution (coal, oil and gas)*, or
- Derive 10% or more of their gross revenue from the provision of supplies or services which relate specifically to fossil fuel extraction or exploration (coal, oil and gas)*
*Please note: there is an exception, as determined by Pendal, where the option may invest in companies that have a Paris Agreement-aligned transition plan in place and are able to produce climate-related financial disclosure annually which in both cases Pendal considers credible.
Australian Fixed Interest
- Derive 5% or more of their gross revenue directly from the exploration, extraction or refinement of fossil fuels (specifically coal, oil and gas)
International Shares
- Extract or explore for fossil fuels (specifically, coal, oil and natural gas), or
- Derive 10% or more of their gross revenue directly from fossil fuel-based power generation, or from fossil fuel refinement or distribution (coal, oil and gas)*
*Please note: there is an exception, as determined by Pendal, where the option may invest in companies that have a Paris Agreement-aligned transition plan in place and are able to produce climate-related financial disclosure annually which in both cases Pendal considers credible.
International Fixed Interest and a portion of Alternatives
- Derive 10% or more of their gross revenue directly from extraction of thermal coal and oil sands production
Australian Shares
- Produce alcoholic beverages, or
- Derive 10% or more of their gross revenue from the distribution or retailing of alcoholic beverages
Australian Fixed Interest
- Derive 5% or more of their gross revenue directly from the production of alcohol
International Fixed Interest
- Derive 10% or more of their gross revenue directly from the production of alcohol
International Shares and a portion of Alternatives
- Derive 10% or more of their gross revenue directly from the production of alcoholic beverages
Australian Shares
- Produce pornography, or
- Derive 10% or more of their gross revenue from the distribution or retailing of pornography
Australian Fixed Interest
- Derive 5% or more of their gross revenue directly from the manufacture or distribution of pornography
International Shares, International Fixed Interest and a portion of Alternatives
- Derive 10% or more of their gross revenue directly from the manufacture or distribution of pornography
Australian Shares
- Directly manufacture, own or operate gambling facilities, gaming services or other forms of wagering, or
- Derive 10% or more of their gross revenue from the indirect provision of gambling (for example, through telecommunications platforms)
Australian Fixed Interest
- Derive 5% or more of their gross revenue directly from the manufacture or provision of gambling facilities
International Fixed Interest
- Derive 10% or more of their gross revenue directly from the manufacture or provision of gambling facilities
International Shares and a portion of Alternatives
- Derive 10% or more of their gross revenue directly from the manufacture, ownership or operation of gambling facilities, gaming services or other forms of wagering
Australian Shares, International Shares and a portion of Alternatives
- Derive 10% or more of their gross revenue from directly mining uranium for the purpose of nuclear power generation
Australian Fixed Interest
- Derive 5% of more of their gross revenue directly from the mining of uranium for the purpose of weapons manufacturing
International Fixed Interest
- Derive 10% of more of their gross revenue directly from the direct mining of uranium for the purpose of weapons manufacturing
Additional exclusions for Australian Equities
The Sustainable Balanced option aims to exclude companies and issuers that:
- Derive 10% or more of their gross revenue from unsustainable forestry or forest products, including non-Forest Stewardship Council certified forest products, or non-Roundtable on Sustainable Palm Oil certified palm oil production
- Directly undertake animal testing for cosmetic products, or
- Directly undertake live animal export
- Directly provide products or services with lending practices that are unfair or deceptive to ordinary borrowers, including small amount short-term loans at higher than commercial rates of interest (for example, payday loans, pawn loans or the use of aggressive sales tactics)
- Pendal considers to have been found in significant breaches of social or environmental norms or regulations, or are subject to serious and substantiated allegations of unethical conduct, which Pendal considers have not been remedied or adequately addressed
Examples
Here are some examples of how the sustainability characteristics may be applied across select asset classes.
International Shares asset class
Within the International Shares asset class, the option aims to align 80% or more of its capital in aggregate with investments that advance the transition to a sustainable economy by supporting positive environmental and/or social change. It may use company revenues aligned to the United Nations’ Sustainable Development Goals, carbon metrics and stewardship activity as indicators of alignment.
Alternatives asset class
Within the Alternatives asset class, the option has a number of investments including a portfolio of Listed Infrastructure investments with an emphasis on operating infrastructure assets in wind and solar, alongside exposure to other diversifying sectors.
Australian Fixed Interest asset class
Within the Australian Fixed Interest asset class, there will typically be a greater focus on Green Bonds, Social Bonds and Sustainable Bonds.
These are the result of incorporating sustainable and ethical criteria into security and credit analysis.
Who might the Sustainable Balanced option be suitable for?
The Sustainable Balanced option might be a suitable investment option for you if you want to invest with a focus on ESG considerations by managing exposure to certain industries and can accept a high level of fluctuation in investment returns from year to year.
It’s important to note that by not investing in certain industries, in those periods that the excluded sectors perform well, your investment option may perform poorly in comparison to other investment options.
How to switch to the Sustainable Balanced option
Before making any changes to your investment option, we recommend that you consult a suitably qualified financial adviser.
Once you’re sure you would like to change your option, you can switch online through Member Online.
More information
- See frequently asked questions about the Sustainable Balanced option
- Download our product information booklets
Need help
- Call us on 13 43 72
- Use Live Chat
1 Refer to the Responsible investing section of our Investment choice brochure for details of how we apply portfolio-wide exclusions.
2 Government securities include securities issued by government, semi-government or supranational entities.
Thank you for printing this page. Remember to come back to gesb.wa.gov.au for the latest information as our content is updated regularly. This information is correct as at 16 June 2026.