POWERED BY MOMENTUM MEDIA
Should ESG be made a regulatory necessity?
The industry funds-backed Australian Council of Superannuation Investors (ACSI) has called on the major parties to commit to strengthen investment stewardship and environmental, social and governance (ESG) considerations for institutional investors.
Among the changes being sought were explicit regulatory recognition of the importance of ESG issues in investment strategies.
The organisation claimed businesses and their boards needed to rebuild trust with Australians and that this could be supported through the responsible management of assets via reform of Australia’s framework for investment stewardship.
ACSI chief executive, Louise Davidson said a stronger stewardship framework would support the quality and integrity of financial markets and contribute to sustainable, long-term value creation for beneficiaries.
Among the remedies being proposed by ACSI were a revision of the Australian Prudential Regulation Authority’s (APRA’s) investment guidance to explicitly recognise the importance of ESG issues in investment strategies.
As well, it wanted a review of the regulatory framework of stewardship to consider appropriate minimum standards of reporting, the appropriate regulatory framework and a stewardship code that applies to all institutional investors.
Davidson said Australia’s regulatory framework lagged behind other developed economies in recognising the importance of ESG factors.
“There is a significant opportunity to bring Australia up to date by clarifying that ESG risks and opportunities are financially material and should be taken into account in risk and return analyses,” she said.
Recommended for you
Investors have slashed their US equity allocations to the lowest level on record, according to new data from Bank of America.
The message from experts in international trade and economists is that the Australian government should refrain from retaliating with reciprocal tariffs.
The market correction forecast by AMP’s chief economist is in full swing, with three weeks of turbulence culminating in significant losses on Tuesday.
Following a strong risk appetite in January, institutional investors have pulled back in February, with risk-seeking activity dropping to zero amid a decline in equity allocations.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
Global X GlobalX FANG+ ETF
33.51 3 y p.a(%)
2
Spire Oaktree Opportunities XI Second Close
32.68 3 y p.a(%)
3
DomaCom Lot 21 Chellaston Road Munno Para West SA 5115 Australia
31.62 3 y p.a(%)
4
Spire Oaktree Opportunities XI First Close USD
31.36 3 y p.a(%)
5
Fidante Credit Suisse Global Private Equity
29.60 3 y p.a(%)
