Collaborating to advance responsible investment principles globally

At IFM, collaboration is an important element of our responsible business approach. Via our active involvement in organisations and initiatives that promote responsible investment principles globally, we are part of collective efforts that aim to advance responsible investment practices, outcomes and transparency in relation to a range of themes, including climate change, gender diversity, modern slavery and environmental, social and governance (ESG) data and disclosures.

As we increasingly focus on contributing to the health of the broader social, environmental and economic systems in which we operate, we know that a collaborative approach will help to bring faster and more impactful positive change.

In the 12 months to June 2022, we actively participated in a number of collaborative initiatives, including the following examples drawn from our 2022 Responsible Business Report.

International Investor Group on Climate Change (IIGCC): We signed up to IIGCC with the aim of strengthening our influence and collaboration in the UK and EU. We are active participants in two key initiatives. The first is the development of the sustainability disclosure standards, as first discussed at COP26, which aim to streamline global reporting initiatives and frameworks. The second initiative is the Paris Aligned Investment Initiative (PAII) working group, which focuses on designing a climate change adaptation framework. In June 2022, the PAII published draft sector guidance for Infrastructure portfolios. IFM’S Executive Director, Responsible Investment, co-led the working group that developed and produced the guidance, which is intended to become the sixth asset class covered by the Net Zero Investment Framework (NZIF).

Australian Sustainable Finance Institute (ASFI): We are a founding member of ASFI, which aims to realign the finance sector to create a sustainable and resilient financial system, which can be achieved by directing capital to support greater social, environmental and economic outcomes consistent with the Australian Sustainable Finance Roadmap. IFM serves on the ASFI taxonomy project steering committee. Building on work done on sustainable finance taxonomies internationally, ASFI is working with experts and stakeholders across the Australian financial system to determine what a sustainable finance taxonomy should look like in Australia to help ensure international credibility and interoperability.

Modern slavery engagement with ASX100 companies: We continue to work closely with the Australian Council of Superannuation Investors (ACSI) and other investors to monitor compliance and quality of modern slavery reporting across ASX 200 companies, as applicable. We also collaborate with industry peers through Investors Against Slavery and Trafficking Asia-Pacific (IASTAPAC). Through this initiative, we lead engagement with various large retailers.

We look forward to continuing to work closely with our investors and other like-minded stakeholders as we pursue our purpose to protect and grow the long-term retirement savings of working people.

To read the full Responsible Business Report, click here.