IFM Investors has released its latest responsible business report for the last financial year detailing its performance and responsible investment activities.
The asset manager reported that its funds under management had increased 8.5 per cent to $172.2 billion and its global institutional investors rose by 18 per cent to a total of 555.
Seventy per cent of IFM’s reference strategies for investor portfolios were found to have outperformed client objectives on a rolling five-year basis.
IFM CEO David Neal said that the firm’s financial performance was underpinned by its responsible business activities.
“Such an approach continues to help us deliver on our purpose, which is to protect and grow the long-term retirement savings of working people,” said Mr Neal.
“This disciplined focus has not wavered through the pandemic, which has reminded us again of the fundamental interdependence of communities, environments and economies where we invest and operate.”
The company has committed to reaching net zero emissions across all of its asset classes by 2050 and has set a 2030 emissions reduction target for its infrastructure portfolio equivalent to a 40 per cent fall from a 2019 baseline.
Forty-two per cent of its US$875 million infrastructure debt investments globally were directed towards renewable energy assets.
IFM’s Australian listed equities team voted on 1,416 resolutions in line with its ESG policies and focused on climate change, fair and equitable standards for workers and gender diversity as key areas of engagement.
Investment highlights identified by IFM include becoming the first institutional investor in the Commonwealth Bank’s Green Term Deposits with a $10 million commitment and investments in global renewable energy assets such as Nala Renewables and Swift Current Energy.
The asset manager also found that its infrastructure portfolio safety performance measured by lost time injury frequency rate for employees and direct contractors was 59 per cent below industry benchmarks.
According to an independent assessment undertaken by EY, IFM is on par or ahead of its global peers on ESG integration.
“Our responsible business approach recognises that the quality of the returns for long-term investors is a function of the quality and sustainability of the economy and financial system, now and in the future,” said IFM executive director of responsible investment Chris Newton.
During the current financial year, IFM plans to refresh and update its ESG due diligence processes and policies with alignment to global regulatory frameworks such as the EU’s Sustainable Finance Disclosure Regulation.
IFM said it will embed its firm-wide strategy work in relation to climate change and workplace leadership into its engagement activities, including increased engagement with ASX-listed companies on modern slavery.
Last month, Sydney Airport agreed to a takeover offer led by IFM.
Jon Bragg
Jon Bragg is a journalist for Momentum Media's Investor Daily, nestegg and ifa. He enjoys writing about a wide variety of financial topics and issues and exploring the many implications they have on all aspects of life.
