The investment Committee (IC) and Risk Committee have delegation from the Board to deal with responsible investment matters, including climate change.
Our governance frameworks
Our investment decision making is guided by governance frameworks. These frameworks ensure we incorporate material Environmental, Social and Governance (ESG) risks and opportunities, including climate change, into the investment decision-making process.
Board governance framework
The Board governance framework for responsible investment (RI) is outlined below. A key component is the measurement and monitoring of the effectiveness of the risk measures by the Risk Committee. We note the following in terms of Board governance:
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At least annually, responsible investment risks, including climate change, will be formally reviewed and presented to the Risk Committee. This occurs in conjunction with the revision of the Cbus Risk Appetite Statement.
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Formal reporting to the IC on climate strategy progress occurs on a 12 monthly basis. The CIO Report to the IC also outlines any other RI matters in respect of climate change such as company engagement, voting and advocacy related work.
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The CIO has delegation to commit to external advocacy that aligns with the Climate Change Position Statement and the Responsible Investment Policy. The CIO is ultimately accountable for climate change matters.
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The Board is highly engaged and attends various training and conferences to increase their knowledge of responsible investment issues.
Management governance framework
The management governance framework has also been established to coordinate the development and implementation of responsible investment initiatives, including climate change work, across the portfolio.
The Responsible Investment Policy (PDF) provides guidance on managing responsible investment including ESG matters and climate change in Cbus investments and within the organisation.
The Forum for Investment Risk Management monitors and reviews the development of ESG-related key risk indicators, the Responsible Investment Forum reviews and supports the development of ESG integration initiatives, and the Climate and Nature Advisory Committee brings together key leaders from across the Investment Team and Fund to guide and shape the strategic direction of Cbus’ response to climate change and nature and biodiversity loss.