ESG Update as at 25 October 2019
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Australian and New Zealand ESG Updates
VicSuper hits sustainability target ahead of schedule
VicSuper has reached its sustainable targets a year early, to deliver $3 billion in sustainable outcomes - 12 per cent of its entire portfolio. The industry super fund has also stated in its annual report that it has aligned member outcomes to eight of the United Nations’ Sustainable Development Goals (SDG).
TCorp issuing a sustainability bond
The New South Wales Government’s fund manager, TCorp, is issuing a sustainability fund with proceeds to finance a mixture of green and social assets. TCorp set up the NSW Sustainability Bond Program in 2018, with the latest issue following on from its first $1.8 billion 10-year Green Bond. The Green Bond is the single largest green bond issued in Australia.
Ausbil IM head of ESG research wins award
Ausbil Investment Management’s ESG research head, Mans Carlsson-Sweeny, has been awarded a Certificate of High Commendation for his contribution to identifying the risk of modern slavery in investment activities. The Freedom Award award is presented by Anti-Slavery Australia and celebrates those who work to promote awareness of and reduce risks of exposure to modern slavery.
This is the first award given since the Modern Slavery Act came into effect in Australia early in 2019. Carlsson-Sweeny has been visiting factories in China, Cambodia and Bangladesh to research the risks of slavery in the supply chains of companies.
Carlsson-Sweeny developed a statement on modern slavery for Ausbil several years ago and got stakeholders talking with the Government about the issue in regards to the Modern Slavery Act. he was also appointed from the Responsible Investment Australia Association (RIAA) to an expert panel for guidance when drafting the Modern Slavery Act.
Two BlackRock Australia funds get an ESG revamp
Two of BlackRock’s multi-asset funds are getting an ESG upgrade: the Scientific Diversified funds in stable and growth versions were launched over two decades ago and currently have about $540 million in assets. The portfolios for both funds will be screened for ESG factors, with the makeover due to investor demand. The equity component is to be screened for tobacco, controversial weapons and nuclear weapons, while the fixed income allocations will undergo more comprehensive screening across nine areas including fossil fuels.
Costs and target returns will remain the same for both funds, however, there is to be a name change from BlackRock Scientific Diversified Growth/Stable Fund to BlackRock Diversified ESG Growth/Stable Fund. There are no plans to screen all funds at this stage.
ANZ, NAB and Westpac fund digital docket startup
A startup funded by three of our big four banks, Slyp, is set to remove the need for paper receipts by sending a digital docket to the buyer’s internet banking app. The company was set up by two former PayPal executives and is set to integrate its services into banking apps. Slyp contains extra features including warranty and returns reminders, ratings, rewards and product recall information.
