The roadmap is a plan to establish mandatory financial disclosure on climate risk in Australia over the next few years. The plan details the actions Australian financial regulators and the Federal Government can take to build on existing work and further ensure there is clear and consistent reporting from companies, investors, banks and insurers. This reporting will produce investable disclosure and ensure financial markets can properly price and act on the physical and transitional risks of climate change.
Ethical Partners advocates for TCFD reporting with our portfolio engagements companies as we believe it provides us valuable insights into how how companies are understanding and managing their climate related risks. Furthermore, we believe that the process of undertaking a TCFD gives a company valuable insights into their own climate risk management and areas for improvement.
Ethical Partners believes mandatory TCFD-aligned disclosure in Australia is required because:
• It is critical for financial stability and investment in net zero emissions and climate resilient economic activities.
• Boards and trustee have a duty to consider material climate risks.
• Voluntary approaches have proven insufficient for transparency, consistency and comparability of disclosures for informed and efficient asset allocation.
• Governments and financial regulators around the world are moving to consider and implement mandatory TCFD reporting requirements.
• Setting clear, mandatory requirements will help provide clarity to align regulation with industry expectations and global standards, reduce existing burdens by reducing and streamlining decision making, and help cut red tape/duplication/confusion about reporting for business.
• The Alignment of reporting expectations across global jurisdictions is important for investors and companies subject to multiple regulatory frameworks.
We look forward to continuing to engage with companies and to support investor collaboration around implementing mandatory financial disclosure on climate risk.
Full press release attached
The tragic human rights situation currently unfolding in Myanmar holds particular significance to our Sustainability Analyst Georgina. Please read Georgie’s poignant thoughts on her visit to the camp, our expectations on our portfolio companies in regard to Myanmar, and why Ethical Partners has recently signed on to the Investor Statement on Human Rights and Business Activities in Myanmar.
During May 2021 the Fund returned 1.56% versus the S&P/ASX 300 Accumulation Index of 2.31%, underperforming the market by -0.75%. An underweight position in IT and an overweight position in Westpac contributed to relative performance while an overweight position in Consumer Staples and an underweight position in CBA detracted from relative performance.
Ethical Partners is proud to be part of over 40 collaborations across the investment industry and with civil society. We believe it is crucial for investors to collaborate, as we see collaboration as both a powerful way to compel companies and policy makers to address issues, but also to advance conversations on these issues amongst the investment community.