Through numerous partnerships and engagement activities, we participate in the development and implementation of best practice environmental, social and governance (ESG) standards around the world:
- Commonwealth Superannuation Corporation is a founding signatory to the Principles for Responsible Investment (PRI) and participated in its development. We are committed to ensuring that all investment activities we undertake are consistent with these principles, where consistent with our fiduciary responsibility.
- We are a member of the Investor Group on Climate Change (IGCC), a group of Australian and NZ investors who know climate change impacts investment returns. The IGCC partners with the CDP to bring the top 100 Australian and top 50 New Zealand companies into the Carbon Disclosure Project.
- We are a signatory to the Carbon Disclosure Project (CDP) – a project supported by 722 institutional investors worldwide to collaborate on business implications of climate change. Signatories to the CDP and IGCC believe that many issues associated with climate change can and are affecting shareholder value.
- Additionally, we are also a signatory to CDP’s Carbon Action program, Water Disclosure program, and Forest Program. These programs encourage companies to disclose and manage their exposures to carbon, water and deforestation risks.
- We are a member of the Global Institutional Governance Network (GIGN), an international institutional investor forum that allow investors to exchange information on share ownership and opinions on corporate governance issues, with a view to exercise effective and constructive influence to improve long term shareholder value.
- CSC seeded and now maintains a strategic relationship with corporate engagement firm, Regnan*. CSC leverages this partnership to manage and identify ESG risks independently of our external managers. This delivers CSC (and other institutional clients) a source of rigorous and independent research, with a commercial and constructive philosophy around corporate engagement.
*Regnan’s history: Our predecessors – the PSS and CSS Boards – established a joint venture with BT Governance Advisory Service (GAS) (formerly Westpac Investment Management) in 2001. GAS was established as an investment risk management overlay service encouraging Australian companies to improve governance practices for the benefit of all institutional investors and the market overall. In 2003 the United Nations awarded our predecessor ARIA and BT GAS with the first ever Royal Award for responsible and sustainable investment. BT GAS re-emerged in 2007 as a new company – Regnan – founded by our predecessor ARIA, along with seven other institutional investors.
You can read more about our approach to ESG risks from our Environmental Social and Governance Policy [PDF 126 KB].