The cornerstone of our responsible investment approach is understanding and managing a range of environmental, social and governance, or “ESG”, risks and opportunities.

As stewards of working people’s retirement savings, we have identified a number of key areas of ESG risk and opportunity. These areas have the potential to impact investment performance as well as the long term stability of the markets in which we operate and depend upon for our investments to grow over the long term.

Climate Change

Global climate change creates uncertainty and opportunity. We firmly believe that managing its risks and transitioning to a low carbon economy are fundamental to delivering competitive long-term net returns.

Political, regulatory and technological responses to climate change have the potential to adversely impact investment performance. We recognise our responsibility to understand and manage climate change related risk, and to seek ways of harnessing the unprecedented investment opportunities emerging from a decarbonising economy.

We explicitly factor climate change risk into all of our investment decisions. Where we can leverage our size and position to influence positive change, we seek to engage and work with investee companies to support and drive their transition to a low-carbon economy in ways that create positive investment, commercial, environmental and social outcomes.

Workplace Leadership

We know from experience that companies with a strong focus on fair labour practices, employee safety and workplace inclusivity tend to perform better over the long term. Sustainable employment practices can underpin strong economies and inclusive societies, which further help to support long-term investment value and returns.

Through active engagement with the companies in which we invest, we champion these ideals to help enhance their productive capacity, net performance and market reputation, while helping to mitigate long-term risk.

Inclusion and Diversity

We actively engage with the companies in which we invest to promote inclusive workplace cultures that harness the value of diversity to support long-term performance.

In our experience, companies that embrace a diversity of views in their workforce, promote working environments free from discrimination and champion a culture of inclusion tend to perform better over the long term and can contribute to a more inclusive and resilient society.

 

IFM - Responsible Business Report 2021


Responsible Business Report

Read more about how our responsible business activities underpin our financial performance for investors.


Australian Infrastructure Carbon Reduction Initiative

IFM Investors understands the risks and opportunities that climate change poses for our infrastructure assets. During FY2019, we worked closely with our major Australian infrastructure assets and their co-owners to commit to emissions reduction targets and pathways. This important initiative reflects our commitments to managing climate change risk.

These commitments include:

  • Continuing to measure our emissions footprint. (Read our Infrastructure Carbon Footprint reports.)
  • Establishing emissions reduction targets and pathways.
  • Reporting annually on these measures.
  • Undertaking physical and transitional risk assessments.