The Vision Super sustainable balanced investment option is "well below benchmark" for companies with no material exposure to controversial weapons, said a statement by the super fund.
In addition, the option has a low exposure to companies involved in fossil fuel exploration and production.
Vision Super chief investment officer Michael Wyrsch pointed to the low cost of the option, at around 12 basis points.
"This new offering fills a gap in the marketplace for people who want the option of low-carbon investment for their super, but are concerned about the high fees and the excess profits generated that usually come with it," Mr Wyrsch said.
"We have one of the most comprehensive environmental and social governance policies in the sector and have been an early adopter of strategies to invest more in renewable energy.
"This month, the Responsible Investment Association of Australasia found that Vision Super is the fourth largest super fund investing in ESG assets," he added.
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