Jun 30, 2026 – 8.00pmIndustry superannuation giant HESTA has told staff it could shut down its sustainable investment portfolio in a few months, fearing it could fail the government’s annual performance test and deliver the $100 billion fund an embarrassing blow.The portfolio, known as Sustainable Growth, has returned 2.7 per cent this financial year to date – far behind other investment options available to HESTA members and also comparable ESG-focused options offered by rivals such as UniSuper, whose sustainable balanced fund has returned more than 6.6 per cent.Subscribe to gift this articleGift 5 articles to anyone you choose each month when you subscribe.Subscribe nowAlready a subscriber? Fetching latest articles
HESTA may close struggling ESG fund before potential test failure
The management has told members of the investment team that its board will vote on whether to close the option at its August board meeting.
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