Our framework for responsible investment

We implement our Responsible Investment Policy and the United Nations Principles of Responsible Investment (UNPRI) through our responsible investment framework, managed by a full-time Manager, Responsible Investment and Sustainability.

The UNPRI is made up of six principles (see below) which we use to integrate environmental, social and governance (ESG) factors into our investment decision-making and ownership practices. Our responsible investment framework divides the six principles into four work streams and sets the standards which each workstreams must meet. It also sets out governance arrangements and roles and responsibilities.

Our responsible investment framework provides a clear picture of the activities required to apply the principles in practice.

We report our progress on the UNPRI annually and publish an annual update on our website. (expected Feb 2011)

If you have any questions about our responsible investment policy or implementation framework please email PRI@perpetual.com.au

Framework streams

1. ESG investment stream (UNPRI 1)
The ESG investment stream implements all activities associated with the consideration of ESG factors in investment decision-making. The responsibility for this work stream rests with our investment managers. The focus of the ESG investment stream is on developing training, tools and processes to assist investment managers in assessing and analysing ESG factors impacting on our investment decisions.

2. ESG engagement stream (UNPRI 2 and 3)
The ESG Engagement stream implements all activities associated with active asset ownership practices, for example, influencing boards and management of companies in which we invest. The target stakeholders for this stream of work are the companies in which we invest.

3. Industry collaboration stream (UNPRI 4 and 5)
The industry collaboration stream implements all activities associated with the development and promotion of ESG practices across the financial service industry. The target stakeholders for this stream are our clients and peers in the financial services industry.

4. ESG reporting stream (UNPRI 6)
The ESG reporting stream implements all reporting requirements including to the United Nations, our clients and the broader public. The stream also manages the internal monitoring and reporting of our progress. The target stakeholders for this stream of work are internal and external parties interested in our policies and progress.

Framework elements

The framework is underpinned by five key elements which set the goals and the standards that all of our responsible investment workstreams must work towards and be judged against:

1. Documented policies which define Perpetual’s approach to ESG integration.

2. Create or source high quality information and develop key relationships which will influence relevant stakeholders.

3. Design and implement processes and tools which support ESG integration (and monitoring).

4. Design and implement monitoring processes which test and demonstrate the success of ESG integration for internal and external reporting requirements.

5. Implement governance, reporting and feedback systems which continuously assess and improve our approach to ESG integration. 

View diagram of our responsible investment framework