Summary of responses to the PRI reporting and assessment tool 2008

Christian Super

Organisational Overview
1. What were your organisation's total assets under management as of 31 December 2007 (in millions)?493
Please select currencyAustralian dollar (AUD)
1a. If 'Other' was selected, please specify the other currency hereNo Answer
2. What category would best describe your organisation?Pension or superannuation or retirement or provident fund or plan
3. What proportion (in %) of your fund is defined benefit and what proportion (in %) is defined contribution? (please only answer this question if you answered “Pension or superannuation or retirement or provident fund or plan” to Q2)
Defined benefit0
Defined contribution100
4. Please provide an overview of your asset mix as of 31 December 2007 (in %):
Listed equity (developed market, active)66
Listed equity (developed market, passive)0
Listed equity (emerging market, active)0
Listed equity (emerging market, passive)0
Fixed income - developed markets22
Fixed income - emerging markets0
Real estate or property6
Private equity1
Hedge fund4
Infrastructure0
Currency0
Commodities0
Cash1
Other (Please specify): 0
5. Please indicate what percentage of your assets are managed internally and what percentage are managed externally (in %):
 
Internal
External
Listed equity (developed market, active)0100
Listed equity (developed market, passive)00
Listed equity (emerging market, active)00
Listed equity (emerging market, passive)00
Fixed income - developed markets0100
Fixed income - emerging markets00
Real estate or property0100
Private equity0100
Hedge fund0100
Infrastructure00
Currency00
Commodities00
Cash0100
Other (Please specify): 00
Principle 1
7. Do you have a formal investment policy statement that makes specific reference to the integration of responsible investment (RI) or environmental, social and governance (ESG) issues within investment decision making and ownership practices?Yes, it is integrated into a broader investment policy and there is an independent RI/ESG policy
9. In what year were RI/ESG issues first formally addressed in a policy statement (integrated or independent)?2005
10. Has your statement that makes specific reference to the integration of RI or ESG issues been disclosed publicly?Yes
11. Please indicate how this statement that makes specific reference to the integration of RI or ESG issues can be obtained (a URL would be sufficient):www.christiansuper.com.au
14. For what percentage of your external assets under management are RI/ESG issues integrated into the investment decision-making processes of your external investment managers? (in %)
Listed equity (developed market, active)100
Fixed income - developed markets100
Real estate or property10
Private equity100
Hedge fund0
Cash0
15. To what extent have RI/ESG issues been integrated into the investment decision-making processes of your external investment managers?
Listed equity (developed market, active)To a large extent
Fixed income - developed marketsTo a large extent
Real estate or propertyTo a moderate extent
Private equityTo a large extent
Hedge fundNo Answer
16. What proportion of your assets involve screening out or excluding stocks or sectors based on ethical (rather than long-term financial) criteria? (in %)89
17. Do you have any staff dedicated to RI/ESG issue analysis and/or implementation?
 
Dedicated
Combined full-time equivalents
Investment analyst10
Research analyst00
RI/ESG issue policy advisor00
(proxy) Voting specialist00
Engagement specialist00
Portfolio manager00
Other (Please specify):00
18. Which Board committee or other executive body has overall responsibility for RI/ESG issues?Investment Committee and Ethics Committees both have responsibility for defined areas.
19. Do you assess the capabilities of internal investment staff to incorporate RI/ESG issues?No Answer
20. Do you assess the capabilities of external investment managers to incorporate RI/ESG issues?Yes
21. Approximately what percentage of your internal non-ESG-specialist investment management staff received RI/ESG training in 2007? (in %)
22. What forms of RI/ESG training or awareness raising have been invested in, encouraged or provided for internal staff (investment and other)?Conferences
23. Did you support the development of nonproprietary RI/ESG issue-related tools, metrics, analysis or academic research in 2007?Not at all
24. Please indicate how the results of nonproprietary RI/ESG issue-related tools, metrics, analysis or academic research development you supported can be obtained if they have been disclosed publicly (a URL would be sufficient):No Answer
25. Have you advocated/supported/ encouraged/participated in RI/ESG issue-related industry-wide training for investment professionals during 2007?Spoke at or attended conferences,Had dialogue or exchanges with peers
26. What was your most significant achievement in 2007 in relation to your implementation of Principle 1?Have continued to build on last year's successful implementation by spreading extent of incorporation of ESG issues across more assets.
27. What was your biggest barrier in 2007 with relation to your implementation of Principle 1?Lack of products available in certain asset classes (eg Hedge Funds, Property) that meet our ESG criteria.
28. Please add any overall comments and clarifications related to Principle 1 here.Enter text response here.
Principle 2
29. To what extent did you employ the following approaches in your 2007 active ownership strategy for listed equities?
(Proxy) votingTo a moderate extent
Direct engagement conducted privatelyTo a small extent
Direct engagement conducted publiclyPlanning to in 2008
Collaborative engagementPlanning to in 2008
Filing shareholder resolutionsNot at all
Co-filing shareholder resolutionsNot at all
Other (Please specify):No Answer
30. To what extent did you employ the following approaches in your 2007 active ownership strategy for all asset classes other than listed equity?
(Proxy) votingNot at all
Direct engagement conducted privatelyNot at all
Direct engagement conducted publiclyNot at all
Collaborative engagementPlanning to in 2008
Other (Please specify):
No Answer
31. Do you have a (proxy) voting policy?Yes - disclosed publicly
32. To what extent does your (proxy) voting policy direct action on ESG issues? For each issue, please indicate the extent of direction.
EnvironmentalTo a large extent
SocialTo a large extent
GovernanceTo a large extent
33. Does your (proxy) voting policy apply to all voting regions (where possible)?Yes
34. Please indicate how your (proxy) voting policy can be obtained (a URL would be sufficient):www.christiansuper.com.au
35. Do you ensure that voting is done in accordance with your (proxy) voting policy?Yes for all
36. What percentage of total votes cast were against management? (in %)5
37. What percentage of shareholder resolutions relating to environmental, social or governance issues was supported? (in %)
Environmental75
Social90
Governance75
39. How many shareholder resolutions related to RI/ESG issues did you participate in during 2007?
As lead filer
As co-filer
Planning to be lead filer in 2008
Planning to be co-filer in 2008
40. How were portfolio companies engaged with in 2007? Please check all that apply.Internal staff engaged portfolio companies directly
42. Do you systematically ask your external investment managers to bring RI/ESG issue-related engagement opportunities to you?To a moderate extent
43. How many portfolio companies did you engage directly/were engaged on your behalf on ESG issues in 2007?
 
Extensive engagement
Moderate engagement
Basic engagement
Environmental110
Social102
Governance100
44. What RI/ESG-related issues were addressed in your shareowner engagement initiatives? Please check all that apply.Activities in conflict zones,Environment,Human rights
45. How were RI/ESG issue-related engagement targets and topics identified? Please check all that apply.Focus issue,Ad hoc/reactive
46. Do you set RI/ESG issue-related engagement objectives and attempt to evaluate success?To a moderate extent
47. Have you sought evidence relating to the effectiveness of your active ownership strategy? Please check all that apply.Governance practices changed,(Written) commitment to improve a particular ESG issue,Improved disclosure
48. What was your most significant achievement in 2007 in relation to your implementation of Principle 2?Significantly improved engagement process. Succesful outcomes from engaging with Australian bank.
49. What was your biggest barrier in 2007 with relation to your implementation of Principle 2?Lack of resources hampers increased engagement efforts.
50. Please add any overall comments and clarifications related to Principle 2 here.Q36 and Q37 figures are estimates only.
Principle 3
51. Have you asked that investee companies (or other investment entities) produce standardized reporting on their RI/ESG issue policies, practices or performance (within annual financial reports or other formats)?To a small extent
52. What format of standardized reporting on RI/ESG issue policies, practices or performance have you requested?Standalone corporate social responsibility or sustainability reporting,Carbon Disclosure Project (CDP)
53. Have you provided feedback to investee companies (or other investment entities) on their reporting on RI/ESG issues?Not at all
54. Have you sought information from companies regarding their adoption of/adherence to norms, standards, codes of conduct or international initiatives related to RI/ESG issues?
AdoptionTo a small extent
AdherenceTo a small extent
55. Which norms, standards, codes of conduct or international initiatives related to RI/ESG issues have you sought information about from companies, with regard to their adoption of/adherence to?UN Global Compact,Equator Principles
56. What was your most significant achievement in 2007 in relation to your implementation of Principle 3?Input into sustainability reporting for a major Australian bank.
57. What was your biggest barrier in 2007 with relation to your implementation of Principle 3?Again, lack of resources with which to research and engage.
58. Please add any overall comments and clarifications related to Principle 3 here.Enter text response here.
Principle 4
59. Are you considering RI/ESG requirements when searching for and selecting the following?
External investment managerYes
Investment consultantYes
Proxy votingNot applicable
Engagement overlayNot applicable
Investment researchNot applicable
Internal operations (for example, purchasing, travel, office space etc.)Yes
Other (Please specify):Not applicable
60. Have you linked the following to performance on RI/ESG issues?
Investment monitoringYes
Incentive structure (internal investments)No
Incentive structure (external investments)No
Contractual relationships with external investment managersNo
61. Are the default pension funds or retirement plans offered to your employees also signatories to the PRI?Not applicable
62. To what extent do you encourage your service providers to become PRI signatories?To a large extent
64. To what extent do you encourage peer organisations to become PRI signatories?To a small extent
65. Do you have evidence that you have played a role in the improved integration of RI/ESG issues by external investment managers?Not at all
67. Have you revisited any relationships with service providers in light of RI/ESG issue-related capabilities?Planning to in 2008
68. Have you engaged in dialogue, lobbying or initiatives pertaining to government policy and/or industry regulations (for example, stock exchanges, accounting standards) related to RI/ESG issues in 2007?Not at all
69. What was your most significant achievement in 2007 in relation to your implementation of Principle 4?Lobbying of external investment managers to sign PRI.
70. What was your biggest barrier in 2007 with relation to your implementation of Principle 4?Limited number of relationships within which to encourage organisations to become signatories.
71. Please add any overall comments and clarifications related to Principle 4 here.Enter text response here.
Principle 5
72. Did you use the PRI Engagement Clearinghouse in 2007?Used clearinghouse
73. Did your use of the clearinghouse result in subsequent action or collaboration with other signatories?No
74. Please elaborate on how the PRI Engagement Clearinghouse could be made more useful:Need to be careful that it doesn't turn into an advertising board. Also is difficult to find areas that we can contribute to given our limited resources (we can really only focus on Australia, and lend support elsewhere if required).
75. To what extent do you participate in the following RI/ESG issue-related collaborative engagement initiatives and/or industry associations? For those not listed, please use the "other" field:Carbon Disclosure Project,Regional social investment organisation (for example SIF or UKSIF),Other (please specify): 'Responsible Investment Association Australasia'
76. Please indicate the three RI/ESG issue-related collaborative engagement initiatives and/or industry associations that you participated in most extensively and indicate how you did so:
Regional social investment organisation (for example SIF or UKSIF)Active member of Christian Investors Forum (a sub-committee of the Responsible Investment Association Australasia)
Other (please specify)
Note: not a UNEP FI member. Contributing to UN PRI small funds initiative
Carbon Disclosure ProjectParticipation only
77. What was your most significant achievement in 2007 in relation to your implementation of Principle 5?Contributions to Small Funds Initiative, discussions with UN PRI Secretariat in relation to possible ways of encouraging more signatories, better implementation, etc.
78. What was your biggest barrier in 2007 with relation to your implementation of Principle 5?Limited number of groups in Australia, limited funding for group membership.
79. Please add any overall comments and clarifications related to Principle 5 here.Enter text response here.
Principle 6
80. Have you disclosed how RI/ESG issues are integrated into your investment processes?Yes - to clients or beneficiaries and the public
81. Please indicated how this disclosure of how RI/ESG issues are integrated into your investment processes can be obtained (a URL would be sufficient):Through Annual Report, Ethical Investment Library and other documentation, available from www.christiansuper.com.au or on request. Looking to issue more media releases in 2008.
82. To what extent do you disclose your annual (proxy) voting record?Planning to in 2008
83. Please indicated how your (proxy) voting record can be obtained (a URL would be sufficient):No Answer
84. Do you systematically report (privately and/or publicly) on your RI/ESG issue-related engagement activities, results and progress?To a large extent
85. Please indicate how your reporting on RI/ESG issue-related engagement activities, results and progress can be obtained (if it is publicly available, a URL would be sufficient):www.christiansuper.com.au - available in our regular Member News publications.
86. Did you communicate on RI/ESG issues and the PRI to beneficiaries or plan participants in 2007?To a large extent
87. Please indicate how your communication on RI/ESG issues and the PRI to beneficiaries or plan participants can be obtained (if it is publicly available, a URL would be sufficient):http://www.christiansuper.com.au - through member guide and member news publications.
88. Are you undertaking any additional efforts to raise awareness of the PRI and RI/ESG issues amongst stakeholders?To a large extent
89. What evidence do you have of the impact on external investment manager practices? Please check those that apply.Improved communications on ESG,Provision of new research,Other (please specify): 'New Signatories'
90. Have you sought to determine what impact your overall RI/ESG issue-related efforts (voting and engagement, investment decision making, disclosure, etc.) have had on corporate behavior or performance?To a small extent
91. Have you sought to determine what impact your RI/ESG issue-related approach has had on the performance of your portfolio?To a moderate extent
92. Have you sought to determine what impact your RI/ESG issue-related efforts, requests and guidance have had on the consideration of RI/ESG issues by your external service providers excluding external investment managers (for example: research providers, consultants, etc.)?To a small extent
93. Do you report on progress and/or achievements relating to the PRI or RI, and how would you like to publish your response to this assessment?Please automatically publish our responses to the reporting and assessment tool in full on the PRI website,We publicly reported on our PRI or RI achievements in 2007 (outside of publishing part or all of this assessment)
94. What was your most significant achievement in 2007 in relation to your implementation of Principle 6?Continued reporting to members of our RI processes and discussions.
95. What was your biggest barrier in 2007 with relation to your implementation of Principle 6?None in particular.
96. Please add any overall comments and clarifications related to Principle 6 here.Enter text response here.
Emerging Markets
97. To what extent have you actively thought about how to integrate RI/ESG issues within investment decision making and ownership practices with regards to emerging markets investments?To a large extent
98. Please describe your activities with regards to integrating RI/ESG issues within investment decision making and ownership practices with regards to emerging markets investments.Have had extensive discussions with Investment Consultant and some product providers about how ESG issues could be factored into Emerging Markets.
99. To what extent do you believe the integration of ESG issues in emerging markets is as relevant as the integration of ESG issues in other markets?To a greater extent
100. To what extent did you employ the following approaches in your 2007 active ownership strategy in emerging markets?
(Proxy) votingNot Applicable
Direct engagement conducted privatelyNot Applicable
Direct engagement conducted publiclyNot Applicable
Collaborative engagementNot Applicable
Filing shareholder resolutionsNo Answer
Co-filing shareholder resolutionsNot Applicable
Other (Please specify): N/A Not Applicable
101. To what extent have you developed a comprehensive RI/ESG engagement capability regarding business activities in emerging markets?To a small extent
102. Please list the three most often addressed RI/ESG-related issues in your shareholder engagement initiatives in emerging markets?
1.Involvement in specified countries (e.g. Burma)
2.
3.
103. Have you sought information from companies regarding their adoption of/adherence to norms, standards, codes of conduct or international initiatives related to RI/ESG issues in emerging markets?
AdoptionPlanning to in 2008
AdherencePlanning to in 2008
104. Do you take RI/ESG considerations into account when selecting and approving emerging markets external investment managers?To a large extent
105. Do your consultants factor RI/ESG issues into their short listing of emerging markets external investment managers?To a large extent
106. Do you have evidence that you have played a role in the improved integration of RI/ESG issues by external investment managers investing in emerging markets?Not at all
107. To what extent have you worked together with other investors to improve the effectiveness of implementing the PRI in emerging markets?Not at all
108. Are you undertaking any additional efforts to raise awareness of RI/ESG issues in emerging markets?To a small extent
109. Have you sought to determine what impact your RI/ESG issue-related efforts (voting and engagement, investment decision making, disclosure, etc.) have had on corporate behaviour or performance in emerging markets?Not at all
110. Please add any overall comments and clarifications related to the PRI in emerging markets here.Note - we have avoided EM investments to date because of the lack of suitable ESG products. These products are slowly becoming available.
111. What is your top PRI-related goal/priority for emerging markets in 2008?Engage a specialist Emerging Markets equity manager who factors in ESG issues.
Closing Comments
112. Why did your organisation join the PRI?As a Superannuation Fund that strives to be a leader in Australia in Ethical Investment, we were already fulfilling most of the principles.
113. Please describe the benefits you have enjoyed as a result of signing the PRI:We have seen many new signatories over the past 12 months, and have enjoyed reputational benefits from being a first mover in this area.
114. To what extent do you believe the PRI has succeeded in changing investor behaviour and/or raising awareness or capacity on RI/ESG issues? Do you have any examples you could share?I think the PRI has gained significant momentum over 2007 and organisations are starting to think about what implementation of the principles means.
115. What are the top three activities the PRI Secretariat could undertake to enhance and encourage further implementation of the PRI by current and prospective signatories?
1.Continued development of Small Funds Initiative
2.Establishment of effective Asia-Pacific Working Group
3.Limitation of 'advertising' by asset managers towards asset owners (eg clearinghouse)
116. What are your top three PRI-related goals/priorities for 2008?
1.Increased application of PRI to more difficult asset classes (Property, Hedge Funds)
2.Increased engagement of Australian companies
3.Continued contribution to Small Funds Initiative, and possible involvement in Asia Pacific Working Group
117. Please rank the six principles from most difficult to implement to least difficult to implement:
Most difficult
1
Principle 5
2Principle 6
3Principle 4
4Principle 1
5Principle 3
Least difficult
6
Principle 2