Describe how responsible investment is incorporated
Treasury utilises an asset consultant to provide fund manager research and investable investment rating recommendations, as well as ongoing monitoring and assessment in relation to their continued use.
The asset consultant is required to provide an assessment of an investment manager's responsible investment policies, practices, activities and reporting as part of the overall assessment of an investment manager's suitability.
This assessment is considered along with other key information and analysis from the asset consultant around an investment manager's business, people and investment processes. This analysis includes an assessment of the quality or skill of the organisation, including the capability of the investment team, quality of investment decision-making and the business management that supports the people and investment process, the expected investment risk to achieve stated performance targets including the investment process, the investment controls and risk management framework in place, as well as an assessment of the risks inherent in the investment product or organisation.
An investment manager and/or investment product may have a comprehensive ESG investment process in place but may still present as an unsuitable investment risk overall.