AMP Capital aims to deliver globally-competitive outcomes for the assets and products we manage. There are links between an asset or organisation's environmental and social impacts, the quality of its corporate governance and its long-term business success. These environmental, social and governance (ESG) factors provide us with greater insight into areas of potential risk and opportunity for our investments and our clients.
Whenever we invest, we consider the specific company or asset, the industry sector in which it lies, and the market or economy in which it operates. ESG analysis adds insights at each of these three levels. At the highest level, AMP Capital is a 'whole of universe' investor and asset manager, and so we have a stake in the sustainable operation of the global economy and the societies it serves, in the integrity and transparency of markets, and in good governance and business conduct.
In this context, AMP Capital recognises that real estate can be a particularly long-term asset class. Our ESG and responsible investment philosophy therefore centres on delivering sustainable, long-term performance by ensuring the property can adapt to changing life cycles, markets, and client and customer expectations.
Our ESG Management System focuses first on the immediate and long-term materiality of each ESG issue. These assessments are then incorporated into a hierarchy of strategies, with which we engage our employees, clients and the community stakeholders of the investee properties.
- ESG materiality assessments are conducted periodically to test the various ESG issues affecting property, with materiality assessed from the perspectives of all stakeholders, including investors, tenants, community and suppliers. Our most recent materiality assessment identified and ranked 45 priority ESG issues, which we factor into our ESG and investment strategies and use to plan for future trends.
- ESG strategies are developed using a common sustainability framework developed using themes from our materiality assessment and world best practice sustainability rating systems including GRI, PRI, GRESB, Green Star, LEED, BREEAM, and One Planet Living. Fund specific sustainability strategies adopt differentiated targets and intitiatives based on the underlying risks and investor and tenant demand for sustainability relevant to different asset classes and the asset composition of each fund. Importantly, all our ESG strategies are integrated into our relevant asset and investment strategies, to maximise investment performance and minimise inherent risks. Each fund has an annual ESG strategy, developed by the Head of Sustainability in consultation with fund managers, asset managers, property and facility managers. Each ESG strategy includes relevant objectives, metrics, targets and initiatives, and the ESG strategy informs the annual budget setting process, ensuring that sufficient capital expenditure is available to execute the strategy and achieve the targets.
- ESG monitoring is managed by the Head of Sustainability, Real Estate, with others in the AMP Capital Real Estate group providing progress reports on ESG initiatives such as energy efficiency, community partnership programs, tenant engagement or governance changes.
- ESG engagement with employees and investors is essential to build a common understanding of ESG factors, how they impact investment performance, and what we are doing about them. We engage with each stakeholder as needed, including by face-to-face meetings, seminars, quarterly and annual reports, and ESG related research papers. Reporting frameworks such as the Global Reporting Initiative (GRI) and the Carbon Disclosure Project (CDP) have informed our sustainability framework, indicators and targets. We obtain annual external assurance of our Scope 1 and 2 Carbon emissions data, and we are in the process of implementing an ISO14001 compliant Environmental Management System.
AMP Capital's ESG and Responsible Investment Guidelines governs our ESG integration across all our asset classes, including our internally- or externally-managed property portfolios. ESG issues affecting one particular asset may have the potential to affect the entire fund in which that asset sits, or other funds managed by AMP Capital.
More detail can be found here: http://www.ampcapital.com.au/office-and-industrial/sustainability-and-our-community
AMP Capital is committed to achieving long term sustainable outcomes at our real estate assets, through our supply chain and in the communities in which we operate. Our Real Estate Sustainability Strategy addresses environment, social and governance issues in order to:
- Enhance value and minimise risk for our investors
- Deliver exceptional real estate experiences for our customers
- Perform in line with global best practice
- Develop our people and our partners’ sustainability knowledge, and
- Build a culture which embraces sustainability as a core value
Each Real Estate Fund has an ESG Strategy which is integrated into the Fund Strategy disclosed to investors.
Our Sustainability objectives are:
- Environmental: we strive to operate within environmental limits, so that our real estate investments are sustainable in the long term.
- Social: we want everyone to enjoy happy healthy lives in vibrant, inclusive communities and workplaces.
- Governance: we respect the rules, and behave ethically in our business and supply chain, continually striving for best practice. We transparently disclose how we are performing.
We report annually using GRESB (the Global Real Estate Sustainability Benchmark), the Principles for Responsible Investment (UN PRI) and NGERs (National Greenhouse and Energy Reporting Act).