Perpetual signs up to the United Nations Principles of Responsible Investment

As one of Australia’s oldest, largest and best known investment managers, we understand that our obligations to our clients include the responsible investment of their money to preserve and build wealth over the long term. On 21 October 2009, Perpetual Investments signed up to the United Nations Principles for Responsible Investment (PRI).

What is PRI?

PRI is targeted at institutional investors. Signatories to the six principles undertake to incorporate environmental, social and governance (ESG) considerations into their mainstream investment processes.

What it means for Perpetual

To Perpetual ‘responsible investment’ has always meant fully understanding and actively managing all factors which can affect the value of our clients’ investments. Our proven investment style and process focuses on quality and value. The PRI framework is consistent with this investment philosophy, as ESG factors can affect both quality and value measures. Being a signatory to the PRI is aligned with the long-term interests and expectations of our clients.

Becoming a signatory to PRI also recognises the growing social and political expectation that the companies we invest in conduct themselves responsibly and sustainably. If companies do not meet these expectations, investment returns may be compromised through increased reputational, litigation and regulatory risks, and missed business opportunities. The effect of these and other ESG factors on a company’s value must be considered and managed along with traditional investment measures. This includes using our influence as a shareholder to bring about changes in company practices to protect the long-term value of our clients’ investments.

What it means for our industry

At the end of September 2009 there were 602 signatories worldwide, who manage over US$18 trillion in assets under management, demonstrating a clear shift towards the integration of ESG factors across the industry.

Our commitment to PRI acknowledges that, as a company and as an industry, we must continue to improve our understanding of how ESG factors impact investment returns for individual assets and across the economy.

Implementing PRI

We will report annually on our progress on the principles and this will be published on our website.

We have created a new role of Manager, Responsible Investment and Sustainability to coordinate the implementation of PRI, work with industry on improved ESG integration and research, and to monitor and report on our progress.

If you have any questions on our approach to responsible investment please email PRI@perpetual.com.au

The six principles

1. We will incorporate ESG issues into investment analysis and decision-making processes.
2. We will be active owners and incorporate ESG issues into our ownership policies and practices.
3. We will seek appropriate disclosure on ESG issues by the entities in which we invest.
4. We will promote acceptance and implementation of the Principles within the investment industry.
5. We will work together to enhance our effectiveness in implementing the Principles.
6. We will each report on our activities and progress towards implementing the Principles. 

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