Responsible investing: a new era
Think investors need to give up returns in exchange for responsible investments? Think again.
Colonial First State was accepted as a signatory by the independent body that encourages investors to use responsible investment as a way to enhance returns and better manage risks. Colonial First State’s commitment to the Principles for Responsible Investment (PRI) is just one of a number of activities associated with the implementation of Commonwealth Bank’s Wealth Management Responsible Investing Framework.
The PRI seeks to understand the investment implications of environmental, social and corporate governance (ESG) factors and to support its network of investor signatories in incorporating these into their investment and ownership decisions.
Signatories have a duty to act in the best long term interests of their beneficiaries and believe that environmental social and corporate governance issues can affect investment performance.
As a signatory, Colonial First State will adhere to the PRI’s six principles which include incorporating ESG issues into investment analysis and decision-making processes; being active owners; and seeking appropriate disclosure on ESG issues by the entities in which it invests.
Colonial First State will also have the opportunity to collaborate and participate in PRI co-ordinated company engagements on ESG issues, and will have the ability to better influence company activities in relation to their management of ESG and climate change matters.
Colonial First State’s Head of Investments, Scott Tully, commented: “For Colonial First State, responsible investing is about taking into account ESG and climate change risks in our investment process. The acceptance of CFS as a signatory is another step in our responsible investing journey.”
Senior Manager, Corporate Responsibility, Jodie Tapscott said as a PRI signatory, Colonial First State is required to report and communicate with its members.
“This will formalise our commitment to being transparent with our members on how ESG risks and issues are being managed on their behalf. It will also provide an opportunity to share engagement and voting outcomes so that our members have comfort that we are listening to their concerns on the environment and human rights.”
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Colonial First State Investments Limited ABN 98 002 348 352, AFS Licence 232468 (CFSIL) is the issuer of super, pension and investment products. This document may include general advice but does not take into account your individual objectives, financial situation or needs. The Target Market Determinations (TMD) for our financial products can be found at www.cfs.com.au/tmd and include a description of who a financial product is appropriate for. You should read the relevant Product Disclosure Statement (PDS) and Financial Services Guide (FSG) carefully and assess whether the information is appropriate for you and consider talking to a financial adviser before making an investment decision. The PDS and FSG can be obtained from www.cfs.com.au or by calling us on 13 13 36.