Cbus believes that as a responsible investor we can improve long term risk adjusted returns through active involvement in Environmental, Social and Governance (ESG) issues. Companies that take account of ESG factors are likely to have sustainable business models and an ability to generate long term shareholder returns for our beneficiaries. The consideration of ESG factors is required form all portfolio managers across all asset classes, to the extent that it is possible, including listed equities.
We also believe we have a role in:
-influencing and contributing to the shift towards a sustainable finance system — (the Sustainable Development Goals - SDGs)
-demonstrating leadership in the built environment
-operating in a manner consistent with our responsible investment approach and
-being transparent in our approach to achieving our objectives
To help define what is important to us with regards to responsible investment, our organisation has also surveyed our staff and members for their views.Cbus has also adopted a specific Responsible Investment Policy and Responsible Investment Principles, which are: Climate Change, Cognitive Diversity, Safety, Labour Rights, Human Capital Management. Cbus also believes in transparency to members and report our Carbon Intensity each year in the integrated annual report, which also includes a dedicated Responsible Investment Supplement.
Cbus has implemented a negative screen process as well as different ESG integration practices alongside its Stewardship program to ensure the Policy objectives are met.
Negative screening is in place across the entire listed equities portfolio to ensure all portfolios exclude and divest from manufactures of tobacco products and also companies directly involved in the manufacture of controversial weapons.
Along with the adoption of negative screening all equity teams incorporate ESG factors into their investment decision making. The fundamental principle of our ESG integration approach is based on assessing the financial materiality of ESG issues both during decision making as well as through ongoing monitoring of our portfolios. In order to help us implement this approach we utilise third party ESG research & data, align to materiality frameworks such as SASB and utilise portfolio management tools.
With regards to our Stewardship activities, Cbus engages with domestic and international companies both directly and via collaborative engagement initiatives and service providers such as Hermes, ACSI, CGI Glass Lewis, Climate Action 100+ and IGCC. Cbus has been a signatory to the ACSI Asset Owner Stewardship Code since 2018.