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AMP Capital Investors

PRI reporting framework 2019

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Governance and human resources

SG 07. RI roles and responsibilities

07.1. Indicate the internal and/or external roles used by your organisation, and indicate for each whether they have oversight and/or implementation responsibilities for responsible investment.

Roles

Select from the below internal roles

07.2. For the roles for which you have RI oversight/accountability or implementation responsibilities, indicate how you execute these responsibilities.

AMP Capital's Investment Committee (IC) is responsible for our ESG-related strategy and initiatives. The Investment Committee is chaired by the CEO and includes Chief Investment Officer(s) and Division Heads of each major asset class. The IC reports through to the AMP Capital Global Leadership Team (AGLT) and the Board of AMP Capital Holdings Limited via the CEO.

The Investment Committee monitors the progress of various investment teams and asset classes in line with the ESG philosophy, approach and objectives. It receives updates as required from dedicated ESG specialists who carry day to day responsibility for integrating ESG considerations across the business working with relevant investment teams, portfolio and asset managers. These specialists also provide updates to executive and board committees of AMP Capital Holdings Limited and AMP Limited (its parent company).

 

07.3. Indicate the number of dedicated responsible investment staff your organisation has.

16 Number

07.4. Additional information. [Optional]

AMP Capital’s dedicated ESG staff increased to 16 in 2018, reflecting a number of new appointments in our Real Estate and Public Markets teams.  We supported our international investment capabilities with ESG specialists appointed to senior roles in our offices in London, Hong Kong and Sydney.

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SG 07 CC. Climate-issues roles and responsibilities

07.5 CC. Indicate the roles in the organisation that have oversight, accountability and/or management responsibilities for climate-related issues.

Board members or trustees

Chief Executive Officer (CEO), Chief Investment Officer (CIO), Chief Risk Officer (CRO), Investment Committee

Portfolio managers

Investment analysts

Dedicated responsible investment staff

External managers or service providers

07.6 CC. For board level roles for which have climate-related issues oversight/accountability or implementation responsibilities, indicate how these responsibilities are executed.

As an investment manager, AMP Capital will consider climate change risks and opportunities when making investment decisions on behalf of our clients. 

AMP Capital's Investment Committee (IC) has overall responsibility for ESG-related strategies and initiatives including oversight of climate change investment risks. The IC is chaired by the CEO and includes the Chief Investment Officer(s) and Division Heads of each major asset class. The IC reports through to Board of AMP Capital Holdings Limited via the CEO.  Both the IC and Board of AMP Capital Holdings Limited receive updates from dedicated ESG specialists who carry day to day management responsibility for integrating ESG considerations including climate change across the business and also work closely with investment analysts, portfolio and asset management teams. Updates are also provided to Responsible Entity (RE) and Trustee Boards for the relevant funds.

ESG specialists also provide updates on climate change to other executive committees and boards of AMP Limited (AMP Capital's parent company).  This includes the AMP Group Risk and Compliance Committee.  

Recent updates include the Paris Climate Change Agreement commitments, an overview of national and international climate policy developments and investment industry initiatives and progress updates of AMP Capital's main climate change related initiatives which may occur at an individual asset, company (stock specific) or portfolio level.

07.7 CC. For the management-level roles that assess and manage climate-related issues, provide further information on the structure and process involved.

Management's responsibility for the consideration of climate change related impacts on specific investments or assets rests with individual investment teams, asset or portfolio managers.  These investment professionals are supported by dedicated in-house ESG specialists that have been analysing climate change investment risks for over 12 years.  This includes consideration of climate change policy and the potential impacts upon AMP Capital's main asset classes.  This analysis is shared broadly with our investment teams to enhance decision-making as well as longer term asset management strategies.

Analysis may occur at an individual asset, company (stock specific), sector or portfolio level.  Information is captured in industry sector analyst reports and also used in company specific ESG scores to facilitate integration into the investment decision-making process across investment teams. 

Climate change is also considered through benchmarking the ESG perfprmance of AMP Capital's flagship real estate and infrastructure funds.  This process may also further inform fund and asset specific management strategies including relating to carbon emissions reductions, asset resilience, and fostering investment opportunities in low-carbon technologies. 

Updates on ESG and climate related initiatives are provided by ESG specialists to the AMP Capital Investment Committee (IC) and various boards across AMP Capital Holdings Limited and AMP Limited (AMP Capital's parent company) as described above.
 

07.8 CC. Explain how the organisation engages external investment managers on the TCFD recommendations and its implementation.


SG 08. RI in performance management, reward and/or personal development

08.1. Indicate if your organisation’s performance management, reward and/or personal development processes have a responsible investment element.

Board members/Board of trustees

08.1b. RI in personal development and/or training plan

08.2. Describe any activities undertaken during the reporting year to develop and maintain Board members’ skills and knowledge in relation to responsible investment.

Knowledge sharing on ESG and responsible investment practices is provided in a variety of forms by our ESG specialists. They actively educate AMP Capital's investment teams, senior executives, Board(s) and Investment Committee(s) through formal updates (e.g. board, investment committee papers). AMP Capital's bi-annual Corporate Governance Report is also provided to the AMP Limited Board and senior management team and features proxy voting results, investment insights and analysis on a range of contemporary ESG topics. Additional updates may also be provided to the Board(s) by the CEO.  AMP Capital's ESG specialists also provide periodic updates and induction briefings on ESG and responsible investing practices for Directors of AMP Capital's Responsible Entity Boards as well as AMP Capital's key institutional clients.

In 2018 ongoing consultation occurred with various Boards and the Investment Committee as part of the introduction of AMP Capital's ethical decision-making framework.  Business updates were also provided on climate change. 

 

Chief Executive Officer (CEO), Chief Investment Officer (CIO), Chief Operating Officer (COO), Investment Committee

08.1a. RI in objectives, appraisal and/or reward

08.1b. RI in personal development and/or training plan

Portfolio managers

08.1a. RI in objectives, appraisal and/or reward

08.1b. RI in personal development and/or training plan

Investment analysts

08.1a. RI in objectives, appraisal and/or reward

08.1b. RI in personal development and/or training plan

Dedicated responsible investment staff

08.1a. RI in objectives, appraisal and/or reward

08.1b. RI in personal development and/or training plan

08.3. Provide any additional information on your organisation’s performance management, reward and/or personal development processes in relation to responsible investment.

Investment professionals including analysts and portfolio managers are directly advised by the dedicated ESG specialists embedded in their investment teams. Interactions on ESG topics can include presentations at Investment Strategy meetings, weekly investment team briefings, distribution of ESG research, ESG knowledge forums (e.g. supply-chain risks, climate change, company engagements) and daily conversation. These sessions focus on the links between ESG and investment performance. Information is also provided through the ESG insights series presented by AMP Capital's ESG team and published on the AMP Capital website www.ampcapital.com.au/esg.

AMP Capital's ESG specialists have performance management, reward and/or personal development processes linked with ESG and responsible investment outcomes. Professional development is supported through external programs, attending and speaking at RI/ESG conferences and participating in various industry working groups and collaborative initiatives.

To align more closely with our client's longer term interests and longer-term investment performance, AMP Capital has also transitioned all investment team professionals from a one-year to a rolling three-year variable pay performance cycle. ESG-related strategic initiatives may also feature on divisional performance scorecards, and so influence the total variable pay / incentive pool available across the division. In addition, portfolio managers for ESG themed funds (e.g. AMP Capital's Responsible Investment Leaders Funds*) have variable pay linked to the performance of their fund.

* AMP Capital Funds Management Limited ABN 15159557721, AFSL 426455 is the responsible entity of the AMP Capital Responsible Investment Leaders Funds and issuer of the Product Disclosure Statements (PDS) for the Funds. To invest, investors will need to obtain the current PDS from AMP Capital before making a decision to acquire, continue to hold or dispose of units in the Funds.


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