Responsible Investing

Perpetual has a long-standing commitment to responsible investment. In 2009, we became a signatory to the United Nations-supported Principles for Responsible Investment (PRI).

Our Responsible Investment Policy applies to our employees responsible for making active investment decisions. These include investment analysts and portfolio managers, across strategies that cover Australian equities and other asset classes. It is our policy that consideration of environmental, social and corporate governance (ESG) factors are incorporated into our:

  • investment analysis and decision making; and
  • ownership practices.

More information can be found in our Responsible Investment Policy.

Our Corporate Governance and Proxy Voting Policy provides further detail on our corporate governance principles and the corporate engagement and voting activities we undertake in respect of companies in which we invest.


RESPONSIBLE INVESTMENT REPORTING

Perpetual Investments Voting Record 2016/2017

Perpetual Investments Voting Record 2015/2016

Perpetual Investments Voting Record 2014/2015

Perpetual Investments Voting Record 2013/2014

Perpetual Investments Voting Record 2012/2013

PRI Public Transparency Report – Perpetual Investments 2017 

PRI Public Transparency Report – Perpetual Investments 2016

PRI Public Transparency Report – Perpetual Investments 2014/2015 

PRI Public Transparency Report - Perpetual Investments 2013/2014

 

Other related responsible investing resources

Responsible Investment Association Australasia

Investors Group on Climate Change

Responsible Investment is important to us

United Nations Principles for Responsible Investment

In 2009, Perpetual Investments became a signatory to the United Nations-supported Principles for Responsible Investment (PRI). This commits us to incorporate environmental, social and governance (ESG) factors into our core investment processes.

The PRI acknowledges that the funds management industry must continue to improve our understanding of how ESG factors impact investment returns and the broader economy.

As at June 2017, there were over 1700 PRI signatories worldwide, responsible for over US$70 trillion in assets under management, demonstrating a clear shift towards responsible investment across the global funds management industry.


We are committed to the United Nations Principles of Responsible Investment, which are:

  • We will incorporate ESG issues into investment analysis and decision-making processes.
  • We will be active owners and incorporate ESG issues into our ownership policies and practices.
  • We will seek appropriate disclosure on ESG issues by the entities in which we invest.
  • We will promote acceptance and implementation of the Principles within the investment industry.
  • We will work together to enhance our effectiveness in implementing the Principles.
  • We will each report on our activities and progress towards implementing the Principles.

Our Responsible Investment Framework

Perpetual’s proven investment philosophy is the foundation of our investment business. While the consideration of environmental, social and governance (ESG) factors was implicit in our philosophy prior to 2009, our approach had been informal. We spent considerable time before becoming a signatory to the United Nations-supported Principles of Responsible Investment (PRI), confirming that the principles were consistent with our philosophy and assessing whether a more explicit approach to ESG would add value to our investment processes.

To do this, we started by understanding what responsible investment (RI) meant to us and imagining what an effective approach to RI would require. We not only looked at our competitors and the PRI to develop this vision, we also considered what investing in a world with a changing climate, significant demographic shifts and resource constraints would demand of us as investors. This work later became the heart of our RI framework and policy.

The role of Perpetual's Manager - Responsible Investment is to design, implement and maintain an RI framework that embeds our approach and philosophy to responsible investment within our existing investment practices as well as working more effectively with other investors and reporting on our progress.

We report our progress on the PRI annually and disclose our progress publicly. If you have any questions about our responsible investment policy or implementation framework please email: richard.morris@perpetual.com.au

a) FRAMEWORK STREAMS

  1. ESG investment stream (PRI 1)
  2. 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.

  3. ESG engagement stream (PRI 2 and 3)
  4. 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.

  5. Industry collaboration stream (PRI 4 and 5)
  6. The industry collaboration stream implements all activities associated with the development and promotion of ESG practices across the financial service industry.

  7. ESG reporting stream (PRI 6)
  8. The ESG reporting stream implements all reporting requirements including the United Nations, our clients and the broader public.

b) FRAMEWORK ELEMENTS

The framework is underpinned by five key elements, which set the goals and standards that all of our responsible investment workstreams must work towards and be judged against:
  1. Document policies that 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.
  5. Implement governance, reporting and feedback systems which assess and improve our approach to ESG integration