InvestNow News – 8th May – AMP Capital – Responsible Investing Update Q1 2020
Engagement update
In the first quarter of 2020, the world’s strong focus on ESG (climate change and the environment in particular) has, along with almost everything else, taken a backseat due to the immediate threat and fight against the COVID-19 health crisis and its economic and social impacts. However, this does not mean ESG has lost its relevance and urgency for long-term investors such as us. Resilient business models with strong management and robust corporate governance remain highly relevant.
While the ‘E’ is not as high on the agenda as it was just a few months ago, we have seen an increased focus on the ‘S’ in ESG. This includes increased focus on how corporates approach and treat employee health and safety, but also how corporates more pro- actively assist and engage with other stakeholders eg customers, suppliers, and local communities – increasing the reputational risk for companies not perceived to be meeting these expectations.
Human rights and supply chains
Over the quarter EL Australian Share fund manager Ausbil participated in a forum where the discussion focused on potential reform of mandatory due diligence on human rights, scope for penalties and liabilities, and trends on human rights legislation overseas. Ausbil brought investor views on the above and discussed opportunities and challenges for potential law reform on human rights issues. Ausbil also met with Blackmores to discuss human rights risk management in the company’s supply chain, including a discussion about where it is sourcing from, how it risk maps its supply chain, and how it prioritises supplier engagements.