Frontier became a signatory of the PRI in October 2006 as a professional service partner. While not a steward or manager of assets, on becoming a signatory, Frontier has publicly committed to providing, developing and promoting services that support its clients’ implementation of the Principles.
In signing the PRI, Frontier has also committed to engaging with investment managers and related service providers to further consider ESG issues in the management of monies on behalf of our clients, consistent with their fiduciary duties.
Frontier works with clients to understand and clarify their ESG investment beliefs and objectives. This defines matters that are most important for the client and assists with the development of the client’s investment philosophy and strategic asset allocation.
In designing an overall investment strategy the sensitivity to climate change risks are examined along with other risk factors.
We incorporate ESG considerations into our manager selection and manager monitoring process. A fund manager’s approach to ESG forms a significant part of our due diligence both at the time of initial manager assessment, and as part of an ongoing review.
Frontier regularly engages with fund managers to ensure active ownership policies are in place and as part of our regular monitoring of these managers we assess whether their active ownership practises are in line with their stated policies.
As part of our regular monitoring of managers, we regularly request disclosure by managers with respect to their ESG practices. Frontier also engages with investment managers with respect to the enhancement of their ongoing ESG reporting to investors, particularly with respect to ESG metrics and data that is most commonly sought by our clients.
For Frontier clients considering becoming PRI signatories, we have provided details with respect to the requirements of the PRI, as well as outlining the key benefits of becoming a signatory. Frontier also engages with investment managers that are yet to become signatories in order to promote the benefits of adopting the principles.
Frontier regularly encourages investment managers and related service providers to further consider ESG issues in the management of monies on behalf of our clients where consistent with their fiduciary duties. One example relates to Frontier collaborating with the Clean Energy Finance Corporation with respect to decarbonisation targets as well as introducing the organisation to some of our clients who are PRI signatories.
Frontier regularly undertakes and publishes research or written thought pieces across a range of ESG related topics. ESG/RI is a standing topic at our annual client conference with previous presentations and panels including topics such as climate change and modern slavery. Frontier is regularly invited to provide commentary on ESG/RI topics by reputable journalists and we seek to actively participate in report on progress made by the firm and by our clients.