Pension-fund owned global fund manager IFM Investors has today released its Sustainable Business Report 2023, highlighting a 150-megawatts of behind the metre renewable energy capacity at its infrastructure equity portfolio assets, continued delivery of emission reduction strategies, and an increased focus on safety and stewardship activities.
Over the year, IFM focused on three priority sustainability themes including, managing the risks of climate change and transition to a low carbon economy, demonstrating workplace leadership with a focus on promoting fair, safe and inclusive standards, and championing inclusion and diversity.
IFM has continued to work closely with companies across its infrastructure equity portfolio to address climate change. Around 85% of companies across IFM’s infrastructure equity portfolio have now set carbon reduction targets and/or strategies to reduce their greenhouse gas (GHG) emissions footprint, covering almost 97% of the GHG emissions of the portfolio and 99% of the portfolio’s net asset value.
The report also highlights active stewardship engagement, advocacy and stakeholder engagement on climate change and the net zero transition by IFM, including:
- Installing more than 150 megawatts of behind the meter renewable capacity across IFM's infrastructure equity portfolio for assets’ self-consumption.
- Working with profit-to-member superannuation funds to deliver a policy blueprint to the Australian government to facilitate greater investment in the energy transition
- Signing a Memorandum of Understanding (MoU) with the United Kingdom Government signalling IFM’s intention to invest £10 billion in the UK by 2027, including energy transition projects
- Sending a delegation of senior IFM leaders to attend and participate in a range of events at COP28
- Continuing to reinforce climate change as a priority theme in IFM’s listed equities stewardship activities.
In FY2022/23 IFM was also recognised by a number of key organisations, including:
- Being confirmed as a signatory of the UK Stewardship Code
- Achieving Climate Active certification for IFM’s global operational emissions, and private equity portfolio
- Being named as a Responsible Investment Leader in the Responsible Investment Association Australasia (RIAA) Benchmark Report 2023
IFM’s infrastructure equity portfolio companies operate across 20 countries and support more than 65,000 jobs. IFM has continued to focus on demonstrating workplace leadership with a focus on promoting fair, safe and inclusive standards for working people.
The importance of this theme is reflected in our growing focus on managing social factors to build long-term value. Key achievements across the organisation and portfolio companies include:
- IFM’s annual corporate Inclusion Index – for measuring the inclusive experience of our people over time – increased seven points to 82% in 2023
- Development and launch of IFM’s inaugural Corporate First Nations Strategy in Australia
. - Safety performance assessments for IFM’s infrastructure equity portfolio exceeded representative benchmarks in FY23.
Central to IFM’s sustainable investment approach is a focus on maximising long-term returns for clients and the millions of everyday people they represent, as well as positioning investments for stronger value creation.
In FY23, 80 per cent of IFM’s strategies performed at or ahead of client objectives; funds under management grew 8.1% to AU$215bn and the number of clients grew 8.6% to 665 globally.
IFM continued to engage with portfolio assets to support the communities in which they operate through the IFM Investors Community Grants Program. The Program supported seven community partnerships across Australia, the United Kingdom, Spain, Mexico and Columbia in FY2022/23, bringing total donations since it began in 2019 to just under A$1 million.
You can access a copy of the Report here.
Quote attributable to IFM Investors Chief Executive, David Neal:
“Our sustainable investment approach underpins our focus on maximising long-term risk-adjusted returns and recognises that delivering benefits for the economy, environment and society is a crucial part of value creation.”
Quote attributable to IFM Investors Global Head of Sustainable Investment, Maria Nazarova-Doyle:
“Systemic risks like climate change can adversely impact the performance of portfolios, which is why it’s so important we work closely with our portfolio companies to increase focus and improve outcomes on sustainability and safety.”
“The key milestones in the report demonstrate the continued focus of everyone at IFM on delivering for our clients and the safe and secure retirement of the millions of working people they represent.”
About us:
About IFM Investors
IFM Investors was established more than 25 years ago with the aim to invest, protect and grow the long-term retirement savings of working people. Owned by a group of Australian pension funds, the organisation has approximately A$217 billion under management as at 30 June 2023. Because IFM is owned by industry pension funds, we prioritise the interests of 640 like-minded investors worldwide by focusing on assets that combine excellent long-term risk/reward characteristics with broad economic and social benefits to the community. As a signatory to The United Nations-supported Principles for Responsible Investment, IFM actively engages on ESG issues with the companies in which we invest with the aim of enhancing their net performance while minimising investment risk. Operating globally from offices in Melbourne, Sydney, London, Berlin, Zurich, Amsterdam, Milan, New York, Houston, Hong Kong, Seoul and Tokyo, IFM manages investments across infrastructure, debt, listed equities and private equity assets. For more information, visit www.ifminvestors.com
Contact details:
For media queries, please contact:
Jamila Fontana 0407 251 130, jamila.fontana@ifminvestors.com