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Pendal

PRI reporting framework 2019

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Promoting responsible investment

SG 09. Collaborative organisations / initiatives

09.1. Select the collaborative organisation and/or initiatives of which your organisation is a member or in which it participated during the reporting year, and the role you played.

Select all that apply

Your organisation’s role in the initiative during the reporting period (see definitions)

Provide a brief commentary on the level of your organisation’s involvement in the initiative. [Optional]

Pendal is a signatory and also participated in the following PRI initiatives:

  • Pendal contributed a case study in the PRI's second report on "ESG in credit risk and ratings report" in addition to participating in related webinars and investor roundtables.
  • Pendal's Head of Responsible Investments attended the PRI in Person conference in 2018.
  • Regnan (a dedicated ESG Research and Engagement organisation, of which Pendal owned 50% in 2018, 100% as of Feb 2019) collaborated on a number of PRI initiatives (e.g. Oil & Gas)

Your organisation’s role in the initiative during the reporting period (see definitions)

Provide a brief commentary on the level of your organisation’s involvement in the initiative. [Optional]

We participate in ACSI surveys, investor roundtables and industry reports.

Through our involvement with Regnan (50% owner 2018, 100% owner 2019) we have worked on a number of collaborative initiatives with ACSI members. 

Your organisation’s role in the initiative during the reporting period (see definitions)

Provide a brief commentary on the level of your organisation’s involvement in the initiative. [Optional]

We are a CDP signatory and also participated in the CDP corporate discloser process in 2018.

Your organisation’s role in the initiative during the reporting period (see definitions)

Provide a brief commentary on the level of your organisation’s involvement in the initiative. [Optional]

Pendal is an active members of the IGCC. Pendal Portfolio Manager Rajinder Singh is a member of the management committee and holds the position of Treasurer. IGCC's Management Committee oversees the work of the IGCC Secretariat and IGCC Member Workgroups. 

Regnan employees participate in a number of IGCC working groups, including the policy, adaptation and disclosure working groups. In 2018 Regnan facilitated a one day workshop for IGCC members on climate-related disclosures, including TCFD.

Your organisation’s role in the initiative during the reporting period (see definitions)

Provide a brief commentary on the level of your organisation’s involvement in the initiative. [Optional]

Regnan participates in the Business Reporting Leaders Forum the - Australian home for IIRC. It provides detailed feedback on a number of integrated reports each year and has participated in a number of academic studies on integrated reporting. Company engagement on integrated reporting is specifically tracked and reported.

          Responsible Investment Association Australasia (RIAA) is the peak industry body for professionals working in responsible investment in Australia and New Zealand.
        

Your organisation’s role in the initiative during the reporting period (see definitions)

Provide a brief commentary on the level of your organisation’s involvement in the initiative. [Optional]

Pendal is a member of RIAA. Pendal holds the RIAA 'Certified by' designation.

Pendal's collaborations included:

  • Sustainable Series Forums with members of RIAA.
  • RIAA Education Webinar
  • Platinum Sponsor at their annual conference - Pendal's CEO and Head of Responsible Investments both presented at the conference.
  • The deputy chair of RIAA is a senior member of Regnan (ESG research and engagement provider) which Pendal owned 50% in 2018 and 100% in 2019. 
  • Participated in a number of working groups including the human rights and corporate engagement working groups.
          Australian Sustainable Finance Steering Committee (ASFI)
        

Your organisation’s role in the initiative during the reporting year (see definitions)

Provide a brief commentary on the level of your organisation’s involvement in the initiative. [Optional]

Australian Sustainable Finance Steering Committee: Pendal’s Australian CEO was appointed to the Steering Committee for the Australian Sustainable Finance initiative in 2018. The initiative was officially launched in March 2019. ASFI is a collaboration to help shape an Australian economy that prioritises human wellbeing, social equity and environmental protection, while underpinning financial system stability. 

The Roadmap development process will be overseen by a Steering Committee consisting of senior financial services, academic and civil society representatives. Pendal Australia's CEO, has been appointed to the Steering Committee. Our Australian CEO is a passionate advocate for responsible investment and delivering societal outcomes. He shares his expertise through current appointments on the NSW Social Impact Investment Expert Advisory Group and as Vice-Chair of the Australian Advisory Board on Impact Investing.

https://www.pendalgroup.com/education-and-resources/pendal-joins-forces-with-financial-sector-leaders-to-steer-australian-economy-through-critical-decade/

https://www.sustainablefinance.org.au/

          Australian Financial Services Council (FSC)
        

Your organisation’s role in the initiative during the reporting year (see definitions)

Provide a brief commentary on the level of your organisation’s involvement in the initiative. [Optional]

Pendal is an active member of the FSC. We have representatives on their ESG Working Group.

          Banking and Finance Oath
        

Your organisation’s role in the initiative during the reporting year (see definitions)

Provide a brief commentary on the level of your organisation’s involvement in the initiative. [Optional]

Pendal's Global CEO is a Board Member and Pendal has been a long-time supporter of BFO.

          Australian Advisory Board on Impact Investing.
        

Your organisation’s role in the initiative during the reporting year (see definitions)

Provide a brief commentary on the level of your organisation’s involvement in the initiative. [Optional]

Pendal Australia's CEO is Vice Chair of the organisation. 


SG 09.2. Assets managed by PRI signatories

Indicate approximately what percentage (+/- 5%) of your externally managed assets under management are managed by PRI signatories.

100 %

SG 10. Promoting RI independently

10.1. Indicate if your organisation promotes responsible investment, independently of collaborative initiatives.

10.2. Indicate the actions your organisation has taken to promote responsible investment independently of collaborative initiatives. Provide a description of your role in contributing to the objectives of the selected action and the typical frequency of your participation/contribution.

Description

          Advisor webinars (both through our own network/website as well as for RIAA) and round table seminars.
        

Frequency of contribution

Description

          IM/Pact Diversity in Investment Management  initiative - in collaboration with Mercer and other asset owners and asset managers in Australia. Part of this initiative involved direct funding for an industry research report into the factors behind the lack of diversity across the investment industry.
        

Frequency of contribution

Description

          Regnan has participated in numerous academic studies on integrated reporting and worked with Griffith University on the backtesting of its research data to explore the links between ESG and share price performance. The full results are available at https://www.regnan.com/esg-integration-for-investment-performance and show that ASX200 stocks which Regnan gave high ESG scores significantly outperformed that ASX200 average, while those with lower scores underperformed.


A further study specifically tested ethical conduct and is available at https://www.regnan.com/the-intersection-of-conduct-culture-and-company-value.
        

Frequency of contribution

Description

          One of our Fixed Income engagement themes in 2018 (and continues in 2019) was to seek better transparency and disclosure practices across the Australian issuer universe, in particular "Use of Proceeds" (Green, Climate, Social and Sustainability) issuers' impact reporting practices.

Regnan facilitated a one-day work shop for IGCC members focused on climate-related disclosures by investors.
        

Frequency of contribution

Description

          Pendal's Australian CEO, Head of Responsible Investments and a number of our Portfolio Managers (for RI funds) presented at various industry conferences (e.g. RIAA, CIE "Chairs & CEO's", Kanga Sustainability Summit) information panels and round-tables events (ACSI, CFA, financial advisor, company, client and NGO) to promote responsible investment as did senior members of the Regnan team.
        

Frequency of contribution

Description

          We published a series of research papers on RI covering a range of topics: diversity, stewardship, ESG factors in credit risk assessments, the Green Bond market, ESG themes in Secular Trends and climate related risk management within investment management. Indirectly, through our ownership in Regnan we also published number of papers on strategic human capital, conduct culture and ESG integration as well as a number of articles and opinion pieces on responsible investment. These are publicly available at  https://www.regnan.com/media-appearances, and  https://www.regnan.com/opinion and cover a range of topics including the investment case for considering climate risk, conduct culture and the responsible investment landscape.
        

Frequency of contribution

Description

          Presented to a number of clients at various levels of seniority (Boards, CEO's, Investment teams, RI specialists) and investor forums to build an awareness of what PRI is and assist in their understandings of what is required to be a signatory. This is also often a central component of Regnan’s advisory work.
        

Frequency of contribution

Description

          Regnan frequently participates in consultations and forums undertaken by non-governmental organisations. This has included participating in a workshop held as part of a review of the Australian National Contact Point under the OECD Guidelines for Multinational Corporations, a review of the Equator Principles specifically looking at grievance mechanisms and made a number of submissions to the FSB’s Taskforce on Climate-related Financial Disclosures (TCFD) during the development of their reporting guidelines.
        

Frequency of contribution

Description

          Examples of topic covered include: education pieces on what is responsible investment/ESG integration, Green Bonds,.ESG integration for Investment Performance, ESG integration in Credit Risk Management. climate-related risks and conduct culture. A sample of these is available at https://www.regnan.com/media-appearances
        

Frequency of contribution

Description

          Regnan, IGCC, BFO, Australian Advisory Board on Impact Investing, CFA, RIAA (a member of the Regnan team is the Chair)
        

Frequency of contribution

10.3. Describe any additional actions and initiatives that your organisation has taken part in during the reporting year to promote responsible investment [Optional]

Pendal has held external presentations on the topic of ESG investing, which has been attended by a range of investors and advisers in the superannuation industry. We have also presented on the issue of RI at a range of industry conferences.

We continued to host a series of "Sustainable Round Table Discussions"  where we invited a group of clients in for a collaborative discussion of various ESG topics (ranging from climate change, obesity, mental health and ethics). The goal was to facilitate a discussion of key RI issues as well as allow for the exchange of experiences in terms of implementing an ESG/Sustainability directed investment process.

We hosted a client event focusing on conduct culture in the Australian economy with a guest speaker, Simon Longstaff, CEO of The Ethics Centre. 

Regnan also provided a panellist at an invitation only event for regulators and corporate senior leaders run by The Ethics Centre “Moral and strategic: re-establishing corporate legitimacy”

Members of the Pendal and Regnan teams serve on a number of advisory groups within RI organisations e.g. FSC ESG Working Group, RIAA's Human Rights and Corporate Engagement Working Groups and IGCC’s policy, disclosure and adaptation working groups.

Further, much of Regnan’s advisory business is expressly focused on building capacity for and enhancing RI practice.

 


SG 11. Dialogue with public policy makers or standard setters

11.1. Indicate if your organisation - individually or in collaboration with others - conducted dialogue with public policy makers or regulators in support of responsible investment in the reporting year.

If yes

11.2. Select the methods you have used.

11.3. Where you have made written submissions (individually or collaboratively) to governments and regulatory authorities, indicate if these are publicly available.

11.4. Provide a brief description of the main topics your organisation has engaged with public policy-makers or regulators on.

Through our involvement with Regnan (previously part owner, board member, wholly owned since Feb 2019), the Investor Group on Climate Change (IGCC, board member) and the FSC ESG Working Group (1x Chair and 1x member), we have engaged with public policy-makers or regulators on the following topics:

  • Climate change disclosures: Regnan presented to the Australian Council of Financial Regulators' Climate Change Working Group on climate-related risks in ASX listed companies and roles for investors and regulators. We provided support for IGCC policy submissions on the proposed National Energy Guarantee (NEG) in Australia and the Zero Carbon Bill in NZ, the Clean Energy Finance Corporation Statutory Review and the Inquiry into Superannuation Fund Investment in Agriculture.
  • Corporate Governance: via Regnan, FSC and IGCC submissions to the consultation on the draft of the fourth edition of the ASX Corporate Governance Council’s Principles and Recommendations and Regnan's submission to the APRA post-implementation review, highlighting confusion surrounding the treatment of ESG within Prudential Practice Guide SPS 530.
  • Conduct, including whistleblowing: via Regnan's submission to the consultation on the exposure draft of the Treasury Laws Amendment (Whistleblowers) Bill 2017 - a public position paper on conduct culture and company value shared with domestic regulators and participation as a panellist at an invitation only event for regulators and corporate senior leaders run by The Ethics Centre “Moral and strategic: re-establishing corporate legitimacy”.
  • Sustainable Finance Roadmap: Both IGCC and RIAA are actively involved in the development of a sustainable finance roadmap for Australia, leading governance forums and working groups as well as drafting key support materials and coordinating events. Regnan also provided a panellist to a session exploring sustainable banking.

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