Taking action toward companies of concern in Occupied Palestinian Territories

At Verve Super, part of our sustainable investment approach is via applying  screens that seek to ensure our members’ money avoids investments that are incompatible with a sustainable future. A key part of this commitment is listening to global human rights concerns. 

In this article, we share how Verve Super is responding to companies that have been identified by the United Nations as operating in the Occupied Palestinian Territories (OPT) - including an update on reviews of these companies and the actions taken to ensure Verve Super investments remain aligned with our sustainable investment approach and the expectations of our members.  

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

Companies that fail to pass Verve Super screens are excluded from the investment holdings. Thanks to these negative screens, Verve Super members have no exposure to the vast majority of companies commonly identified by UN human rights bodies as operating in OPT.  

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

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

Verve Super undertook a review of these companies against our sustainable investment screening criteria. Following engagement and assessment, Verve Super concluded that four companies no longer align with these criteria. As a result, members' superannuation is no longer invested, either directly or indirectly, in the following companies:

1. Airbnb

2. Expedia

3. Booking Holdings

4. Alstom SA

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

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 Verve Super members’ retirement savings and that we remain confident that our investments continue to meet our screening criteria.   

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.