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Australian Capital Territory

PRI reporting framework 2020

You are in Strategy and Governance » Objectives and strategies

Objectives and strategies

SG 05. RI goals and objectives

05.1. Indicate if and how frequently your organisation sets and reviews objectives for its responsible investment activities.

05.2. Additional information. [Optional]

The Responsible Investment Policy provides the overarching framework in relation to financial investment activities in the area of responsible investment. 

A key element of the ACT Government's annual budget process is the use of performance indicators for the measurement of a Directorate's performance against longer-term strategic objectives, as well as ongoing accountability indicators to measure a Directorate's effectiveness and efficiency in delivering their outputs. Treasury has directly linked a number of annual accountability indicators to our responsible investment activities, including targets for the exercising of our proxy voting rights and nil investment exposure to excluded business activities.  The measurement and reporting on the accountability indicators by Directorates is audited annually by the ACT Auditor-General. 

These measures can be found in the 2019-20 annual budget papers (https://apps.treasury.act.gov.au/budget/budget-2019-20/home) and the 2018-19 annual financial statements (https://www.cmtedd.act.gov.au/functions/publications/2018-19annualreport). 

The status of the progress of the Government's Responsible Investment policy is also an area keenly monitored by the Standing Committee on Public Accounts (a parliamentary committee) with regular questioning and requests for advice during relevant Committee hearings processes.

In addition to these, there is an ongoing review of existing arrangements and emerging responsible investment activities.  If considered necessary, steps are taken to review and enhance the Responsible Investment policy.


SG 06. Main goals/objectives this year

06.1. List the main responsible investment objectives that your organisation set for the reporting year.

Responsible investment processes

Key performance indicator

          Rationalisation and restructure of Treasury investment solutions and investment administration functions under a single, consolidated and unitised ACT investment platform.
        

Progress achieved

The investment restructure was completed in December 2018 with the key benefit being increased investment economies of scale and cost efficiencies, as well as the consistent application of the ACT Government's Responsible Investment policy framework across all investment solutions.​

 

 

 

 

 

Financial performance of investments

ESG characteristics of investments

Key performance indicator

          To undertake an annual carbon audit of the listed share portfolios.
        

Progress achieved

The annual carbon audit includes data and analysis on estimated carbon emissions, including types of emissions and attribution analysis, estimated carbon intensity, ownership of fossil fuel reserves, including all types of reserves, potential emissions from fossil fuel reserves, and exposure to company efforts related to carbon risk and management strategies including carbon emissions reduction targets, use of clean energy sources/technology and energy consumption management and operational efficiencies. 

Compared against the international shares parent index the international share portfolio’s: carbon footprint is 47% lower; carbon emissions are 47% lower; carbon intensity is 43% lower; and exposure to companies owning fossil fuel reserves is 71% lower. The portfolio has no exposure to thermal coal reserves with no potential emissions from thermal coal reserves, with potential emissions from fossil fuel reserves 85% lower than the parent index.

Compared to the Australian shares parent index the Australian share portfolio's: carbon footprint is 36% lower; carbon emissions are 36% lower; carbon intensity is 35% lower; and exposure to companies owning fossil fuel reserves is 49% lower. Potential emissions from exposure to fossil fuel reserves are 92% lower than the partent index, with no exposure to potential emissions from thermal coal reserves. 

Other description (2)

          Investment in clean/environmental technologies.
        

Key performance indicator

          Increase investment in clean/environmental technologies over the course of the 2018-19 financial year.
        

Progress achieved

Treasury maintains investment in clean/environmental technologies including a focus on clean energy, energy efficiency, sustainable environment solutions to conserve and improve resources and natural systems, and environmental management and restoration.

The value of investment in clean/environmental technologies increased over the 2018-19 financial year with investment in unlisted infrastructure assets which includes exposure to renewable energy infrastructure assets. The Australian-based renewable energy assets include three wind farms and one solar farm.  

Other activities

06.2. Additional information.

Refer to the opening introduction about the unique charatceristics of the Autralian Capital Territory as a signatory.


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