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
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