AMP Capital a signatory to the United Nations Principles of Responsible Investment

AMP Capital is active in many finance industry initiatives to improve governance standards and encourage responsible investment.  In 2007 we reinforced our commitment to incorporating environmental, social and governance (ESG) issues into our investment decisions by signing up to the United Nations Principles of Responsible Investing (UN PRI). These principles aim to provide an internationally agreed framework to help institutional investors incorporate ESG issues into investment decision making and ownership practices.

As a business AMP Capital takes environmental, social and governance issues seriously in our investment decision-making practices. This is already evident, for example, in our strong equity proxy voting policy, environmental initiatives in our property investments, and our Sustainable Alpha process.

The signing of the UN PRI strengthens this commitment and provides an externally recognised benchmark that we can report against and use to challenge us further.

Signing to these principles represents a very real commitment to incorporating ESG issues into the investment process. It also recognises that applying the principles should lead to better long term financial returns and closer alignment between our objectives and those of society at large.

The principles

1. The UN PRI are voluntary and aspirational. They include the following:
2. Incorporating ESG issues into investment analysis and decision-making processes.
3. Being active owners and incorporating ESG issues into our ownership policies and practices.
4. Seeking appropriate disclosure on ESG issues by the entities in which we invest.
5. Promoting acceptance and implementation of the principles within the investment industry.
6. Working together with other signatories to enhance our effectiveness in implementing the principles.
7. Reporting on our activities and progress towards implementing the principles.

How we apply the principles

AMP Capital is progressively applying the UN PRI to our investment activities across all asset classes:

Australian listed equities – in Australian listed equities we are already considered a leader in the area of corporate governance and in communicating to companies on the potential risks and issues around policy response to climate change. We will continue to promote good governance of our investments and to contribute to public policy discussion on ESG issues which have a potential long term impact on listed equities.

Property – in property we believe the consideration of ESG issues will assist in the long-term investment performance of our property investments by providing an additional dimension for improving operating performance of property assets. Incorporation of ESG issues will be integral to the attraction and retention of key tenants and shoppers and will also enhance the risk management of property. This will lead to better performance through lower operating costs, higher rentals and decreasing vacancy rates.

Infrastructure,  fixed interest and private equity - over the next 18 months we will continue to extend the UN PRI to other key investment areas including infrastructure, fixed interest and private equity.  We also commit to evaluate the effectiveness and improve the content of the principles over time.