The Board is responsible for approving the Investment Governance Framework and Investment Objectives. In this role, it approves our Risk Appetite Statement, Climate Change Position Statement and climate change work program, including climate strategy and other initiatives.
Our responsible investing Board governance framework
Our responsible investment decision making is guided by governance frameworks. At Cbus, responsible investment means considering Material1 Environmental, Social and Governance (ESG) risks and opportunities as one input in the investment decision making process (integration), using active stewardship (voting and engagement) to protect and preserve value for our members, and shaping the systems we operate in through public policy and regulatory advocacy.
1 Material ESG risks and opportunities are those that are likely to affect business or investment performance.
Board governance framework
The Board governance framework for responsible investment (RI) is outlined below:
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The Investment Committee (IC) is responsible for approving the Investment Strategy, and monitoring our climate change work program, including actions within the climate strategy.
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At least annually, responsible investment risks, including climate change, are formally reviewed by the Risk Committee.
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Formal reporting to the IC on climate strategy progress occurs on a 12-monthly basis. The IC are also regularly updated on other RI matters in respect of climate change such as company engagement, voting and advocacy related work.
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The CIO has delegation to commit to external advocacy that aligns with the Climate Change Position Statement and the Responsible Investment Policy. The CIO is ultimately accountable for climate change matters.
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The Board is highly engaged and attends various training and conferences to increase their knowledge of responsible investment issues.
Management governance framework
The management governance framework has also been established to coordinate the development and implementation of responsible investment initiatives, including climate change work, across the portfolio.
The Responsible Investment Policy (PDF) provides guidance on managing responsible investment including ESG matters and climate change in Cbus investments and within the organisation.
The Forum for Investment Risk Management monitors and reviews the development of ESG-related key risk indicators, the Responsible Investment Forum reviews and supports the development of ESG integration initiatives, and the Climate and Nature Advisory Committee brings together key leaders from across the Investment Team and Fund to guide and shape the strategic direction of Cbus’ response to climate change and nature and biodiversity loss.