Cbus set sights on industry governance following BIG appointment

Cbus will work with the Building Industry Group (BIG) to drive due diligence across Victoria's construction supply chain following BIG's decision to retain Cbus as the default fund for its Victorian member union agreements.

Cbus announced it would form a working group with representatives of BIG to promote reforms in a number of key areas.

Teaming up with the Australian Council of Superannuation Investors (ACSI), it plans to establish a responsible contracting policy as part of a broader ESG (environmental, social and governance) program and work to improve local content in line with state and federal government programs.

"As an investor we need to ensure contractors in the supply chain are following the law, and identify any potential risks," he said.

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"That is why Cbus is working closely with ACSI to look at consistent standards across the superannuation industry.

"Similarly, local content provisions are an established feature of state and federal government investment strategies and should be considered by the superannuation industry."

The working group will also be charged with reviewing occupational, health and safety (OHS) monitoring of investment portfolios, and review investment options including investment improvements for members approaching retirement.

Cbus said it would consider the establishment of an Annual Members Meeting when its board meets in June.

Cbus chief executive David Atkin said the industry fund had been at the forefront of best governance practice including transparency and disclosure, and the proposed reforms to improve fund administration were an extension of that.

"Cbus has consistently delivered above-average returns to its members and has invested heavily in the building and construction industry to help create over 34,000 direct jobs and 55,000 ancillary jobs since 2005," he said.