Actions we take today should not compromise the outcomes received by investors tomorrow.
We recognise that we must be increasingly mindful of the footprint our investments make in markets, communities and on the environment.
We believe that poor management of long term environmental, social and governance (ESG) related risks by a company not only impact our investments but can potentially harm the broader community and environment as well.
We require management to be focused on long-term and sustainable value creation.
Our approach to responsible investing
As stewards of our members’ retirement savings, we have a duty to act in their best interests and to protect and grow the real value of their assets.
A critical part of this is a responsibility to monitor and engage with companies in which we invest, directly and through the fund managers we appoint. This is more than just voting. Activities may include monitoring and engaging with companies on matters such as strategy, performance, risk, and capital structure.
Perhaps most importantly, we have an obligation to ensure that the companies we invest in on behalf of members are governed in a way which will enhance their performance over the longer term.
We believe that good governance is essential to being able to generate the best financial outcome for members. We generally support boards that have a majority of independent directors and that contain a diverse set of experience and skills appropriate to the business.
Additionally, we take an interest in the environmental and social practices of the listed companies in which we invest. We believe companies that take a sustainable approach to the environment and to the community, including their own workforce, will perform better over the long term.
An interview with our Head of Responsible Investing (Liza McDonald)
and CFA Societies Australia:
Recognition for our approach
