The AMP Capital ESG and Responsible Investment Philosophy is available at www.ampcapital.com.au/esg or via the following link:
At AMP Capital, ESG encompasses a broad range of issues that may of themselves, or in combination, have a material impact on the risk/return characteristics of our investments. These issues may be driven by existing or future regulations, reflect issues of significant societal concern, or pose potential operational, financial, strategic, reputational or systemic risks:
Environmental: Natural resource use and degradation (e.g. water scarcity), waste, pollution, greenhouse gas emissions, climate change, clean technology products and services, environmental management practices.
Social: Human capital, workplace health and safety, labour relations and standards, human rights, demographic changes, supply-chain and community impacts.
Governance: Board composition, independence, diversity, executive remuneration and incentive plans, corporate accountability structures, compliance, negligence, bribery and corruption, conflicts of interest and related-party transactions, shareholder rights, accounting and audit quality.
The ESG philosophy applies across the business, providing guidance to AMP Capital's investment teams across the diverse asset classes and geographies in which we invest. This includes equities, fixed income, property, infrastructure and our multi-manager funds.
The philosophy is also linked to other ESG-related policies, procedures, guidelines and proprietary tools at an organisational and asset class level that also form part of AMP Capital's ESG framework and further influence our business and investment decision-making. These include specific policies and guidelines relating to corporate governance, proxy voting, engagement and active ownership and ethical considerations.
The ESG philosophy is approved by AMP Capital's Investment Committee, which has overall responsibility for coordinating and implementing AMP Capital's ESG-related strategy and initiatives. It outlines our approach to ESG and responsible investment including goals and priorities across our investment analysis and decision-making, active ownership and engagement practices. AMP Capital is committed to sharing our progress on ESG integration at the request of our clients and other stakeholders, and in line with our commitments under the PRI. The ESG philosophy reflects our ongoing objectives, aspirations, business strategy and performance measures related to ESG integration. It will be reviewed regularly to ensure ongoing alignment between AMP Capital's corporate objectives and our client's requirements.
AMP Capital's Investment Committee is responsible for monitoring the progress of various investment teams and asset classes in line with the philosophy, approach and objectives outlined in the document. The AMP Capital Investment Committee reports through to the AMP Capital Holdings board and the AMP Limited board (parent company) via AMP Capital's Managing Director.