Responsible Investment

Nikko AM Australia’s intrinsic value Australian equities and the Principles for Responsible Investment

The Principles for Responsible Investment (PRI) provide a framework for investment professionals to include environmental, social and corporate governance (ESG) considerations into their investment philosophies, analysis and decision making, and to disclose such issues to investors.

The Principles were developed by investors, for investors. They have nearly 1,500 signatories, from over 50 countries, representing USD 60 trillion.

The Principles

  1. Incorporate ESG issues into investment analysis and decision-making processes
  2. Be active owners and incorporate ESG issues into ownership policies and practices
  3. Seek appropriate disclosure on ESG issues from the entities invested in
  4. Promote acceptance and implementation of the Principles within the investment industry
  5. Work together to enhance the effectiveness in implementing the Principles
  6. Report on activities and progress towards implementing the Principles

Nikko AM’s involvement

Nikko AM Equities Australia Pty Limited is a signatory to the PRI. This reinforces and affirms the Nikko AM Australia intrinsic value Australian equities approach to ESG issues.

Linking the Nikko AM intrinsic value Australian equities approach to standards that have been developed by a highly respected third party highlights Nikko AM Australia’s commitment to investing in a manner that is environmentally and socially responsible, rather than simply developing our own code of conduct.

As a long-term investor, the Nikko AM intrinsic value Australian equities team believes that ESG considerations can affect the fundamental performance of investment portfolios, particularly over the longer term, and that adopting the Principles will benefit Nikko AM Australia’s investors as well as the community.

Nikko AM Equities Australia has always taken its role as a shareholder very seriously, and in the past the intrinsic value Australian equities team has raised concerns, voted at shareholder meetings, and worked directly with the companies in which it invests, to ensure that its concerns and opinions are heard and, hopefully, taken into account by the company so that the best outcome for them, and thus investors, is achieved. This could include assisting in the development of appropriate board structures, suitable and appropriate remuneration systems, or getting involved in decisions around strategy as it pertains to ESG.

The Nikko AM intrinsic value Australian equities team believes it is good for companies that it invests in to know the standards that shareholders expect from them, which in itself gives further support to ESG considerations.

Click here to go to the Principles of Responsible Investment website.

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