Guiding our approach

Our investment decision making is guided by governance frameworks that are outlined below. These frameworks ensure we incorporate ESG risks and opportunities, including climate change, into the investment decision-making process.

Board governance framework

 

The Board governance framework for responsible investment is outlined below. A key component is the measurement and monitoring of the effectiveness of the risk measures by the Audit & Risk Management Committee.

We note the following in terms of Board governance:

  • The investment Committee (IC) and Audit & Risk Management Committee (A&RM) have delegation from the Board to deal with responsible investment matters, including climate change.
  • At least annually, responsible investment risks, including climate change, will be formally reviewed and presented to A&RM. This occurs in conjunction with the revision of the Cbus Risk Appetite Statement.
  • Formal reporting to the IC on progress against the climate change roadmap will occur on a quarterly basis. The CIO Monthly Report to the IC also outlines any other responsible investment matters in respect of climate change such as company engagement, voting and advocacy related work.
  • The CIO has delegation to commit Cbus to external advocacy, engagement and voting positions that align with the Climate Change Position Statement and the Responsible Investment Policy.
  • 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 climate change work being undertaken across the portfolio. Within Management, the CIO and Portfolio Head, Responsible Investment are ultimately accountable for climate change matters.

The Responsible Investment Policy (PDF) provides guidance on managing responsible investment including ESG matters and climate change in Cbus investments and within the organisation. We continue to develop manuals and guidelines that are used internally to guide the implementation of our responsible investment approach.