Pengana Capital Group has been named a Responsible Investment Leader by the Responsible Investment Association Australasia (RIAA) in its landmark annual study launched today. This recognises our commitment to responsible investing and attributes as an investment manager.
RIAA’s Scorecard consists of 15 questions, covering four key areas, or pillars:
Pillar 1: Coverage of and commitment to responsible investing and transparency;
Pillar 2: Enhancing risk management through explicit and systematic consideration of ESG factors and other screens, including reporting of these;
Pillar 3: Being strong stewards for more sustainable and resilient assets and markets; and
Pillar 4: Allocating capital to benefit stakeholders and contribute to solutions as well as measurement and reporting of outcomes.
The Responsible Investment Benchmark Report Australia 2022 shows the number of Australian assets managed using a rigorous, leading approach to responsible investment has hit a record value of $1.54 trillion, now accounting for 43% of the total market.
The report, researched in collaboration with EY, also shows a record 45% of investment managers are holding companies to account on matters relating to environmental and social issues, and reporting back to investors on the outcomes achieved. This number has more than doubled in the past two years, with only 21% of investment managers engaging in such activity in 2019.
The study shows excellence in responsible investment materialises into substantial financial returns. In 2021, products certified under RIAA’s Responsible Investment Certification Program on average outperformed the market in the medium to long term, and over some time frames achieved two or three times the returns.
Investment managers are also getting much better at backing up their claims around the sustainability of their portfolios, as they don’t want to find themselves on the wrong side of tightening greenwashing regulation and scrutiny.
A record 74 investment managers out of 140 have been identified as Responsible Investment Leaders, who explicitly and systematically consider ESG factors in the allocation of capital, and are decidedly transparent, reporting publicly not just on their activities to improve environmental and social sustainability, but also the outcomes they achieve.
Read the report here: https://responsibleinvestment.org/resources/benchmark-report/