Responsible Investment
What is Responsible Investment?
Like many institutional investors, the Guardians invest with a long-term focus. We recognise that environmental, social and governance (ESG) matters are long-term factors that can be highly relevant to investment performance. ESG matters present regulatory, market, reputational and operational risks and opportunities shareholders need to consider to fully understand the companies in which they are invested.
Responsible Investment (RI) is the integration of ESG considerations into investment management practices, in the belief that these factors can have an impact on financial performance.
The Guardians believe ESG analysis should be integrated into traditional investment analysis across asset classes, and mainstreamed into the investment process.
We see an opportunity in developing the investment strategy for the Fund to systematically consider ESG issues, with the objective being to better manage long-term risks and maximise investment opportunities. This aligns with our two core RI beliefs, part of our investment beliefs:
- Responsible asset owners who exercise best-practice portfolio management should have concern for ESG matters of companies; and
- Improving ESG factors can improve the long-term financial performance of a company.
The Guardians have appointed a Head of Responsible Investment, reporting to the General Manager Corporate Strategy, to help develop and implement the Guardians' policy, standards and procedures for responsible investment and corporate governance.
Below we provide further detail on how we pursue our Responsible Investment approach.
