Further to SG 13.3 "Additional Information "
No Action (extreme temp.) – there is no meaningful and coherent policy response on a global basis but in this case, temperature rises and following from that, physical impacts, follow the 90th percentile of IPCC projections.
Furthermore, Frontier's reserach team continue to do more work on ESG more broadly as part of thier manager ratings process along with tackling the risks of climate change in thier portfolios in the medium term.
Further to SG 14 .1 "Other Specify 1" above:
ACSI has been engaging with ASX companies for years on the disclosure and integration of climate-related risks and opportunities. ACSI engages with a broad range of companies on climate risk and also prioritises particular companies based on materiality and exposure.
ACSI also uses proxy voting as a mechanism to create engagement on climate-related resolutions and as a tool for signalling where improvement on climate-related issues can be made.
Further to SG 14.6 "Limitations & Weaknesses":
Data relating to Scope 3 emissions which are generally referenced as emissions that are a consequence of the operations of an organisation but are not directly owned or controlled by the organisation (i.e. indirect emissions due to activities of an organisation) are not very reliable and accurate. Scope 3 requires much more deeper thought and evaluation.
Furthermore, a shift to a low carbon investment again reinforces Vision Super’s commitment to sustainable investment, which has included over a decade of major investment in renewable energy, wind, solar and hydro power. Vision Super wants Australia to become a zero carbon emission economy , but we know that it will take some time to transition to renewable and completely replace fossil fuels – including gas. In the meantime, Vision Super has adopted a sound ESG policy, a low carbon philosophy and has invested in lower carbon share indexes for our passive equity mandated portfolios. Vision is concerned about the lack of focus on demand management which will be required if the transition is to be successful.
For our active fund managers, its important to us that they have elements embedded within their process for similar ESG considerations and take into account our ESG Policy framework. With these managers we ask of them to account for the impact of phasing our fossil fuel usage and in line with the Paris Agreement limiting global warming to no more than two degrees celcius and above the pre-industrial global mean temperature.
Furthermore, Vision Super welcomes the renewed global focus on emission reductions as a result of the 2015 Paris Climate Summit, particularly as large scale change is needed for Australia’s current energy mix to shift from 10% produced by renewable and 90% from fossil fuels. Stronger climate policy - such as carbon pricing and ambitious renewable energy targets, will speed up the transition to a low carbon future by leveling the playing field for renewable over fossil fuels.
The Fund was ranked 19th out of the world's 500 largest investors for our action on climate change in the the 2017 Global Climate Index by the Asset Owners Disclosure Project (AODP). The Global Climate Index ranks asset owners, fund managers and insurance firms, on how they manage climate risk in their investment portfolios. Vision Super received a "AA" rating in the index, placing us in the leading top 6% of asset owners in the world when it comes to managing climate risk and the top four responsible asset owners in Australia.
As a member of ACSI and as outlined within ACSI Governance Guidelines, there are specific practices and guidelines relating to disclosure of ESG risks. They use company engagement and proxy voting for ASX-listed companies as a tool for managing climate change risks and opportunities and engage with a broad range of companies on climate risk and also prioritizes particular companies based on materiality and exposure.
ACSI also uses proxy voting as a mechanism to create engagement on climate-related resolutions and as a tool for signaling where improvement on climate-related issues can be made.
ACSI and the Financial Services Council (FSC) have published the ESG Reporting Guide for Australian Companies. The Guide outlines the essential information and data that investors require to accurately price, analyse and manage ESG risks. ACSI recommends that companies report to the indicators listed in the Guide as a minimum standard.
ACSI encourages companies to disclose their ESG issues in a form that is consistent with existing disclosure frameworks.
Leading reporting frameworks and issues specific reporting guides include:
- Anti-corruption and bribery
- Global reporting initiative
- Integrated reporting
- Carbon disclosure project
ACSI also undertakes a number of submission to government during the course of the year and they can be located at the following webiste link: https://acsi.org.au/submissions/
Furthermore, ACSI is supportive and recommends the risk assessemnt and reporting framework in the Financial Stability Board's Taskforce on Climate-related Financial Disclosure (TCFD) and expect disclosure to extend to strategies along with targets and specific metrics to manage this risk. ACSI encourages companies to conduct and disclose scenario analysis and considers the transition risks of moving to a Paris-aligned eceonomy as well as the physical risks associated with unmitigated climate change. Similar to Vision Super policy and beliefs, ACSI also expects any company's trade/industry associations activities, to be consistent with the Paris Pledge Agreement.
For further information refere to website link: https://acsi.org.au/our-issues/climate-change/
Lastly, under our ACSI international proxy voting agreement, CGI Glass Lewis engaged with a number of companies on issues related to emissions. Because Glass Lewis is not authorized by its clients to advocate for specific issues or outcomes, Glass Lewis’ engagement efforts have primarily consisted of information sharing and companies describing shareholder outreach and feedback. Glass Lewis has on occasion inquired about shareholders’ feedback on issues related to the environment and climate change, among other environmental and social topics, and will also inquire about any follow up that a company may be taking following a shareholder vote on a shareholder proposal dealing with emissions or climate change.