Creating lasting value: IFM Investors releases its Responsible Business report for 2020/21

IFM Investors has today released its Responsible Business Report 2021, reporting on its performance, as well as its actions and commitments on climate change, workplace safety and conditions, and inclusion and diversity for 2020/21.

The report shows the industry-fund owned global fund manager continued to exceed benchmarks for investors during another pandemic year, while investing responsibly and helping deliver on our purpose, which is to protect and grow the long-term retirement savings of working people.

The report details IFM’s investment performance, which delivered for its investors and their members and beneficiaries in 2020/21, with key highlights including:

• Funds under management increased by 8.5% to A$172.2 billion

• 70% of our reference strategies for investor portfolios across all our asset classes (infrastructure, debt, listed equities and private equity) outperformed client objectives on a rolling 5-year basis, after fees and taxes.

• The number of institutional investors increased by 18% from 470 to 555 globally

IFM Investors says its positive 2020/21 results are underpinned by its focus on managing investment risks and opportunities in ways that contribute responsibly to communities and the environment, as well as the economy.

IFM took a number of steps over the past twelve months to manage and mitigate the risks of climate change, including:

• Committing to reducing greenhouse gas emissions across our asset classes, targeting net zero by 2050.

• Setting a scope 1 and 2 emissions reduction target of at least 1.16 million tonnes of CO2e for our infrastructure portfolios by 2030 - the equivalent of a 40% reduction from a 2019 baseline.

• Deploying almost half of the US$875 million in infrastructure debt globally in 2020/21 in renewable energy assets, including solar, wind and hydro.

• Becoming the first institutional investor to take up the Commonwealth Bank of Australia’s Green Term Deposits, which are used to invest in assets that support the transition to a low carbon economy.

• Investing, along with IFM portfolio companies, in global renewable energy assets, including Nala Renewables and Swift Current Energy.

• Setting targets in the Private Equity business for the first time for carbon neutral certification for each portfolio company.

IFM’s Responsible Business Report details measures undertaken during 2020/21 to promote and improve inclusion and gender diversity through investment.

IFM also commissioned work in 2020/21 to better understand the impacts of COVID-19 on women’s participation in the labour market, and how applying a gender lens might help drive economic growth and build gender equality as part of the post-pandemic economic recovery.

Other highlights of IFM’s 2020/21 Responsible Business activities include:

• Confirmation that the safety performance of IFM’s combined Australian and Global ex-Australian infrastructure portfolios significantly exceeds representative benchmarks, with the lost time injury frequency rate (LTIFR) for employees and direct contractors 59% below a comparable representative industry benchmark.

• The expansion of IFM’s Infrastructure Community Grants program, which supported 9 projects globally with up to A$40,000 funding each

• 1400+ resolutions voted on by our Australian listed equities team in line with our ESG Policy.

• The launch of the Special Situations Credit strategy – a broad investment mandate designed to support capital constrained borrowers, such as growth businesses and those impacted by COVID-19.

The 2021 Responsible Business Report can be accessed here: https://www.ifminvestors.com/insight-article/2021-responsible-business-report

Quotes attributable to IFM Investors Chief Executive David Neal

“Our investment performance and our sustained success as a business are a testament to our hardworking team, underpinned by our responsible business approach – such an approach continues to help us deliver on our purpose, which is to protect and grow the long-term retirement savings of working people.”

“This disciplined focus has not wavered through the pandemic, which has reminded us again of the fundamental interdependence of communities, environments and economies where we invest and operate.”

Quotes attributable to IFM Investors Executive Director, Responsible Investment, Chris Newton

“This report provides a comprehensive summary of the actions IFM has taken over the past twelve months across our asset classes and on a range of issues, including climate change, workplace safety, inclusion and diversity.”

“Our responsible business approach recognises that the quality of the returns for long-term investors is a function of the quality and sustainability of the economy and financial system, now and in the future.”

For media queries, please contact: Phil Davey +61 414 867 188.

 

---

 

About IFM Investors:

IFM Investors was established more than 25 years ago with the aim to protect and grow the long-term retirement savings of working people. Owned by a group of Australian pension funds, the organisation has A$179 billion under management as at 30 September 2021. Because IFM is owned by industry pension funds, we prioritise the interests of over 500 like-minded investors worldwide by focusing on assets that aim to combine excellent long-term risk/reward characteristics with broad economic and social benefits to the community. As a signatory to The United Nations-supported Principles for Responsible Investment, IFM actively engages on ESG issues with the companies in which we invest with the aim of enhancing their net performance while minimising investment risk. Operating globally from offices in Melbourne, Sydney, London, Berlin, Zurich, New York, Hong Kong, Seoul, Amsterdam and Tokyo, IFM manages investments across infrastructure, debt, listed equities and private equity assets. For more information, visit www.ifminvestors.com

 

Important Disclosures

The following disclosure applies to this material and any information provided regarding the information contained in this material. By accepting this material, you agree to be bound by the following terms and conditions. The material does not constitute an offer, invitation, solicitation, or recommendation in relation to the subscription, purchase, or sale of securities in any jurisdiction and neither this material nor anything in it will form the basis of any contract or commitment. IFM Investors (defined as IFM Investors Pty Ltd and its affiliates) will have no liability, contingent or otherwise, to any user of this material or to third-parties, or any responsibility whatsoever, for the correctness, quality, accuracy, timeliness, pricing, reliability, performance or completeness of the information in this material. In no event will IFM Investors be liable for any special, indirect, incidental, or consequential damages which may be incurred or experienced on account of a reader using or relying on the information in this material even if it has been advised of the possibility of such damages.

Certain statements in this material may constitute “forward looking statements” or “forecasts”. Words such as “expects,” “anticipates,” “plans,” “believes,” “scheduled,” “estimates” and variations of these words and similar expressions are intended to identify forward-looking statements, which include but are not limited to projections of earnings, performance, and cash flows. These statements involve subjective judgement and analysis and reflect IFM Investors’ expectations and are subject to significant uncertainties, risks, and contingencies outside the control of IFM Investors which may cause actual results to vary materially from those expressed or implied by these forward-looking statements. All forward-looking statements speak only as of the date of this material or, in the case of any document incorporated by reference, the date of that document. All subsequent written and oral forward-looking statements attributable to IFM Investors or any person acting on its behalf are qualified by the cautionary statements in this section. Readers are cautioned not to rely on such forward-looking statements. The achievement of any or all goals of any investment that may be described in this material is not guaranteed.

Past performance does not guarantee future results. The value of investments and the income derived from investments will fluctuate and can go down as well as up. A loss of principal may occur. This material may contain information provided by third parties for general reference or interest. While such third-party sources are believed to be reliable, IFM Investors does not assume any responsibility for the accuracy or completeness of such information. This material does not constitute investment, legal, accounting, regulatory, taxation or other advice and it does not consider your investment objectives or legal, accounting, regulatory, taxation or financial situation or particular needs. You are solely responsible for forming your own opinions and conclusions on such matters and for making your own independent assessment of the information in this material. Tax treatment depends on your individual circumstances and may be subject to change in the future. This material is confidential and should not be distributed or provided to any other person without the written consent of IFM Investors. Investing based on sustainability/ESG criteria involves qualitative and subjective analysis. There is no guarantee that the determinations made by the adviser will align with the beliefs or values of a particular investor.

Companies identified by an ESG policy may not operate as expected and adhering to an ESG policy may result in missed opportunities. An infrastructure investment is subject to certain risks including but not limited to: the burdens of ownership of infrastructure; local, national and international economic conditions; the supply and demand for services from and access to infrastructure; the financial condition of users and suppliers of infrastructure assets; changes in interest rates and the availability of funds which may render the purchase, sale or refinancing of infrastructure assets difficult or impractical; changes in environmental and planning laws and regulations, and other governmental rules; environmental claims arising in respect of infrastructure acquired with undisclosed or unknown environmental problems or as to which inadequate reserves have been established; changes in energy prices; changes in fiscal and monetary policies; negative economic developments that depress travel; uninsured casualties; force majeure acts, terrorist events, under insured or uninsurable losses; and other factors beyond reasonable control.

Investments in fixed income securities are subject to the risks associated with debt securities generally, including credit, interest rate, call and extension risk. Private equity investments are speculative, highly illiquid, involve a high degree of risk and have high fees and expenses that could reduce returns; they are, therefore, intended for experienced and sophisticated long-term investors who can accept such risks. Furthermore, restrictions on transferring interests in private equity funds may exist so prospective investors should be prepared to retain their investments in the fund until the fund liquidates. Private equity funds may borrow money or use leverage for a variety of purposes, which involves a high degree of risk including the risk that losses may be substantial. Lastly, the possibility of partial or total loss of a private equity fund's capital exists, and prospective investors should not subscribe unless they can readily bear the consequences of such loss. There can be no assurance that the private equity fund sponsor’s or the fund’s investment objectives will be achieved or that investors will receive a return of their capital. Australia Disclosure.

This material is provided to you on the basis that you warrant that you are a “wholesale client” or a “sophisticated investor” or a “professional investor” (each as defined in the Corporations Act 2001 (Cth)) to whom a product disclosure statement is not required to be given under Chapter 6D or Part 7.9 of the Corporations Act 2001 (Cth). IFM Investors Pty Ltd, ABN 67 107 247 727, AFS Licence No. 284404, CRD No. 162754, SEC File No. 801-78649.

Netherlands Disclosure

This material is provided to you on the basis that you warrant that you are a Professional Investor (professionele belegger) within the meaning of Section 1:1 of the Dutch Financial Supervision Act (Wet op het financieel toezicht). This material is not intended for and should not be relied on by any other person. IFM Investors (Netherlands) B.V. shall have no liability, contingent or otherwise, to any user of this material or to third parties, or any responsibility whatsoever, for the correctness, quality, accuracy, timeliness, pricing, reliability, performance, or completeness of this material.

United Kingdom Disclosure

This material is provided to you on the basis that you warrant that you fall within one or more of the exemptions in the Financial Services and Markets Act 2000 (“FSMA”) [(Financial Promotion) Order 2005] [(Promotion of Collective Investment Schemes)(Exemptions) Order 2001, or are a Professional Client for the purposes of FCA rules] and as a consequence the restrictions on communication of “financial promotions” under FSMA and FCA rules do not apply to a communication made to you. IFM Investors (UK) Ltd shall have no liability, contingent or otherwise, to any user of this material or to third parties, or any responsibility whatsoever, for the correctness, quality, accuracy, timeliness, pricing, reliability, performance, or completeness of the information in this material.

Switzerland Disclosure

This Information is provided to you on the basis that you warrant you are (i) a professional client or an institutional client pursuant to the Swiss Federal Financial Services Act of 15 June 2018 ("FinSA") and (ii) a qualified investor pursuant the Swiss Federal Act on Collective Investment Schemes of 23 June 2006 ("CISA"), for each of (i) and (ii) excluding high-net-worth individuals or private investment structures established for such high-net worth individuals (without professional treasury operations) that have opted out of customer protection under the FinSA and that have elected to be treated as professional clients and qualified investors under the FinSA and the CISA, respectively.