ESG Management

We believe environmental, social and governance factors are material to long-term investment returns. For this reason, in order to achieve our goal of maximising returns without undue risk, we actively manage the long-term risks and opportunities that environmental, social and governance issues present to the Fund. In line with our mandate of best practice portfolio management, we are also committed to global best practice and domestic leadership in responsible investment.

In recent years, investors around the world have begun to place a much higher emphasis on responsible investment and the effective management of environmental, social and governance risks. Maintaining a global best practice approach will therefore require constant improvement on our part.

Global benchmarking

UNPRI assessments

We benchmark our responsible investment practice through annual United Nations Principles for Responsible Investment (UNPRI) assessments. In the 2015 UNPRI Assessment Report we received an A+ rating for our overall approach to responsible investment.

The UNPRI is the internationally accepted benchmark for how institutional investors should manage environmental, social and governance issues. The 2015 report follows a redesign of the UNPRI’s assessment and reporting methodology, and is therefore the first public UNPRI report on the Fund’s responsible investment performance since 2011. Under the previous UNPRI reporting methodology, the Fund also did well, rating in the top quartile of a group of 198 asset owners across all six UNPRI principles (2011).

Investor Group on Climate Change

In 2012 we completed the IGCC's third annual Global Investor Survey on Climate Change. This survey allows participants to compare their climate change activities with peer funds. In 2013 Mercer published a report summarising the survey responses and providing examples of best practice.

To find out more:

Further information about our approach to responsible investment is available in the How We Invest section.