Why consider ESG in your investment processes
Our key motivation for encouraging our external managers to consider ESG issues within an investment process is to gain a deeper insight into areas of risk and opportunity that could materially impact the value or performance of an investment. ESG issues are often amplified by macro or external factors. ESG issues are often reflected in regulation associated with particular stakeholder issues, or may pose operational, financial, strategic, reputational or systematic risks to economies, industry sectors, companies or physical assets.
Partnering for change
We actively collaborate with other stakeholders through a variety of industry initiatives to improve corporate governance standards, improve transparency and disclosure and encourage responsible investment practices through the integration of ESG issues.
Principles for Responsible Investment (PRI)
As a signatory to the United Nations supported Principles for Responsible Investment (PRI), AMP Investments is committed to extending responsible investment and ESG integration activities across our multi-strategy and single sector funds, where an AMP entity is the Responsible Entity and issuer. These principles are:
- To incorporate ESG issues into investment analysis and decision-making processes;
- To be an active owner and to incorporate ESG issues into our ownership policies and practices;
- To seek appropriate disclosure on ESG issues by the entities in which we invest;
- To promote acceptance and implementation of the Principles within the investment industry;
- To work with the PRI Secretariat and other signatories to enhance their effectiveness in implementing the Principles; and
- To report on our activities and progress towards implementing the Principles.
Restricted investments
AMP Investments restricts investment in companies highlighted though our screening process to have:
- Involvement in cluster munitions, anti-personnel landmines, and biological and chemical weapons.
- Involvement in the production and manufacture of tobacco and electronic cigarettes products.
- Companies which earn more than 50% of their revenue (as reported in their audited financial statements) from the sale or distribution of tobacco or electronic cigarettes, (or if this information is unavailable, company revenue is estimated on a best-efforts basis by our external ESG data and research provider).
The proportion of the assets of a fund subject to the investment restrictions will be dynamic with both market movements and asset allocation changes and will differ between investment options due to the different levels of exclusive control and the varying allocations to assets where restrictions do not apply (cash, sovereign bonds, exchange traded funds and derivatives).
Governance & active ownership
We actively advocate for responsible practices through our own operations and investments to improve corporate governance standards, transparency, and disclosure on ESG issues
You can you view this in detail in our Proxy Voting Policy and Disclosure Document.
AMP Limited : Our group approach to sustainability
To AMP, sustainability is our ability to meet the needs of the present without compromising future generations.
Our approach to sustainability is built around three core areas of stakeholder focus: our customers, our people and partners, and our community and environment.
Through an annual stakeholder engagement process, we identify a range of material sustainability issues, impacting our three core focus areas, which influence our ability to create and protect value for our stakeholders into the future. You can find our sustainability reporting suite report on our corporate website.
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What you need to know
This information is provided by National Mutual Funds Management Ltd (ABN 32 006 787 720, AFSL 234652) (NMFM) and is general in nature only. It doesn’t consider your personal goals, financial situation or needs. It’s important you consider the appropriateness of any advice, your own ESG values and read the relevant product disclosure statement and target market determination available at amp.com.au, before deciding what’s right for you. NMFM is part of the AMP Group and can be contacted on 131 267 or askamp@amp.com.au. “AMP Investments” and “we” refers to NMFM.
You can read NMFM’s Financial Services Guide online for information about our services, including the fees and other benefits that AMP companies and their representatives may receive in relation to products and services it provides. You can also ask us for a hard copy.
Where AMP does not have exclusive control of managed funds, for example where we invest in externally managed pooled vehicles without a separate investment mandate, we cannot directly influence the external manager(s) to uphold our policy. We may continue to invest in such pooled funds, unit trusts or exchange traded funds and accepting that the policies of that fund will apply.
All information on this website is subject to change without notice.