Principles for Responsible Investment

Since June 2007, we have been a signatory to the UN-supported Principles for Responsible Investment.

The principles broadly encourage the integration and analysis of environmental, social and corporate governance characteristics within the companies we invest in for our clients

How we apply the principles

We recognise that applying these principles may better align VFMC and our clients with the broader objectives of society. Therefore, where consistent with our fiduciary responsibilities, we commit to the following:

Incorporate ESG

Incorporate ESG issues into investment analysis and decision-making processes

  • Assess potential managers and work with existing managers to ensure Environmental, Social and Governance (ESG) issues are considered as part of their portfolio construction process, operational and management platforms and as a driver of employee behaviour
  • Ensure managers have a commitment to ESG and have appropriate policies and reporting in place either via the PRI or suitable, measurable and disclosable alternatives. Key areas are: compliance, good practice, strategy and management across both investment and operational areas
  • Ensure managers appropriately resource ESG areas
Seek appropriate disclosure

Seek appropriate disclosure on ESG issues by the entities in which we invest

  • Encourage external managers to disclose ESG issues in quarterly reports, annual sustainability reports and in response to market or stakeholder interest
  • Encourage companies to integrate ESG issues within their annual reports
Be active owners

Be active owners and incorporate ESG issues into our ownership policies and practices

  • Exercise our voting rights
  • Work with Regnan to facilitate an active engagement process for our holdings in the S&P/ASX200
  • Require external managers to report on an annual basis on their ESG activities
  • For property portfolios encourage managers to use and comply with sustainability rating systems across property portfolios (eg: NABERS, Green Star, etc)
Promote acceptance

Promote acceptance and implementation of the principles within the investment industry

  • Ask our external managers to report to VFMC on their ESG activities and provide examples of how managers have integrated ESG issues into their investment analysis
  • Incorporate ESG issues into our standard RFPs
Work together

Work together to enhance our effectiveness in implementing the principles

  • Support appropriate industry initiatives designed to promote the consideration of ESG issues
  • Support Regnan in its engagement activities
  • Where appropriate participate in industry, government or community initiatives
Report on our activities

Report on our activities and progress towards implementing the principles

  • Report our proxy voting record to our clients and publish a summary of our voting record on our web site
  • Publish our ESG policy on our web site

We believe that the PRI provides an important universal framework for signatories to work together, learn from each other and provide a collective voice on ESG issues.

We also believe that the PRI will continue to grow as a framework for investors to communicate their expectations on ESG issues to their investee companies.

Participation in PRI Advisory Committees

VFMC is an active participant of the following PRI Advisory Committees:

  • Fixed Income Advisory Committee
  • Infrastructure Advisory Committee.
  • Macroeconomic Risks Advisory Committee.

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