ESG and Responsible Investing
The University of Sydney's approach to Environmental, Social and Governance (ESG) matters in respect of its investment portfolio are set out in its Investment Policy contained within the Policy Register. The Investment Policy is supported by more detailed Investment Procedures detailing the way in which the principles set out in the Investment Policy will be implemented. In managing the investment portfolio, it is important to note that the University outsources the investment management of the Growth and Alternative asset components of its diversified investment portfolio to sector specialist managers. Debt investments in short term money market securities (such as bank bills and term deposits) and Australian Commonwealth and semi-government bonds are managed internally.
Share Voting (Australian equities)
The University appreciates it has responsibility to vote on its shares to ensure long-term value to all shareholders. Therefore, ICM is committed to being an active owner of Australian equities, and in this regard, seeks to exercise all its proxy votes. All votes are lodged by, and according to, the recommendations of the University’s third party proxy voting expert, CGI Glass Lewis.
In February 2015 the University of Sydney announced that it planned to reduce the carbon footprint intensity of its listed equity portfolio as compared with the carbon footprint intensity of a composite benchmark of domestic and overseas equities. The carbon footprint intensity of the portfolio is measured in the fourth quarter of the calendar year using end of September data. The latest results can be found here.