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We believe that environmental, social, governance (ESG) and climate change factors have the potential to impact your investments, so understanding the effects of these factors on our carefully considered investment approach is key.

At Colonial First State, we believe that as stewards of your investments, investing responsibly is about the careful execution of our investment duties on your behalf. Our beliefs are driven by our four guiding principles of integrity, balance, transparency, and focus – and these shape our approach.

Our beliefs

Impacts

Acknowledging ESG and climate change factors must be integrated in the decision-making process.

Opportunities

Allocation of capital to productive purposes can drive long-term returns.

Engagement

Engagement with our members and investment managers will shape our position into the future.

Responsibility

Delivering on our Responsible Investing Framework, is critical to earning and maintaining trust.

Our guiding principles

Integrity

The interests of members and our fiduciary duties are at the heart of everything we do.

Balance

We listen carefully to all sides of the conversation to continually deepen our understanding.

Transparency

We clearly explain the basis of our decisions and our progress on our Responsible Investment Framework.

Focus

We strive to offer meaningful responsible investment strategies to help support investment choices.

Our commitments

We are committed to understanding your ESG and climate change concerns and reflect the growing public awareness of these issues through the development of innovative products and services.

 

Our team places ESG considerations at the heart of our decision-making and active ownership practices and looks to engage with companies and investment managers to encourage the disclosure of ESG and climate risks. Ultimately we seek to ensure sustainable, long-term wealth creation, protection and enhancement by understanding and assessing these risks and opportunities.

 

Together, our team can help you create meaningful change – not only for your financial future, but to achieve positive social and environmental impact as well.

Our approach

Embedding environmental, social and governance (ESG) considerations into the investment process is no longer just a trend – it is simply what we do.

 

Colonial First State’s approach to asset stewardship and delivering sustainable investment outcomes is driven by our beliefs and outlined in our Responsible Investment Framework.

 

In order to incorporate ESG and climate risk considerations into our existing investment decision-making and active ownership practices, we follow some general principles.

Our responsible investing approach diagram
  • We identify the ESG and climate risks and opportunities of each portfolio.

  • We seek to understand the drivers of these risks and opportunities, and what our investment managers are doing to manage them.

  • We take appropriate actions (that is, how we choose to engage with investment managers and, where appropriate, seek change).

  • We report internally on the ESG and climate risks within each portfolio.

  • We have committed to being transparent regarding how we manage ESG considerations and to also annually disclose our progress against our commitments, aligning our reporting with established standards.

  • We carefully track the ESG and climate risks and opportunities for each portfolio on an ongoing basis.

  • We will manage, reduce and/or mitigate the ESG and climate risks of each portfolio over time.

Our team is committed to following these principles when making asset allocation decisions and changes to investment managers. As part of our due diligence process, we:

 

  • Research how each of our managers takes ESG factors into account
  • Calculate the ESG ratings and carbon footprint of any investment changes being proposed
  • Carefully assess each of our managers’ approaches to ESG risk and stewardship (for example, their voting and engagement record), in order to understand their investment decisions.

 

 

This allows us to have informed conversations with our investment managers on the risks and opportunities their actions are bringing to their portfolios – and, in turn, to you.

Disclaimer

Colonial First State Investments Limited ABN 98 002 348 352, AFSL 232468 (Colonial First State) is the issuer of the FirstChoice range of super and pension products from the Colonial First State FirstChoice Superannuation Trust ABN 26 458 298 557. Colonial First State also issues interests in products made available under FirstChoice Investments and FirstChoice Wholesale Investments. This document may include general advice but does not take into account your individual objectives, financial situation or needs. You should read the relevant Product Disclosure Statement (PDS) and Financial Services Guide (FSG) carefully, 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 colonialfirststate.com.au or by calling us on 13 13 36.