At ClearBridge Investments, ESG is not merely a screen or an overlay; it is part of how we conduct fundamental research and it defines how we think about all companies considered for investment in all client portfolios.
We are proud to have achieved high scores for our investment practices from the United Nations Principles for Responsible Investing (“PRI”) in 2023.
ClearBridge Investments has been a signatory since 2008.
The PRI is a voluntary framework for financial institutions who commit to integrate ESG factors into their investment analysis and decision-making practices.
We take our participation in the PRI very seriously and have implemented methodologies that enable us to monitor our adherence.
Having regard to social and environmental considerations is part of our investment process. We understand that while the SDGs are thematic rather than company-specific, they do help align sector and company-specific ESG considerations with broader societal goals. We therefore map issuers against each one of the SDGs as a proxy for determining a positive Environmental or Social contribution.
Yes, our current policy is the 'Responsible Investment Policy'.
ClearBridge Investments believes that integrating sustainability into the investment process supports our responsibility to our clients in achieving their investment goals. This policy conveys our approach and methodologies in support of the commitment to responsible investment across the ClearBridge Australia business.
Yes. Our current policy can be accessed here.
In voting proxies, we are guided by general fiduciary principles. Our goal is to act prudently, solely in the best interest of the beneficial owners of the accounts we manage. We attempt to provide for the consideration of all factors that could affect the value of the investment and will vote proxies in the manner that we believe will be consistent with efforts to maximise shareholder values.
We use the opportunity to engage with the management, boards and other shareholders on sustainability issues and actively use our voting rights (where practicable) to reinforce our and our client’s views on sustainability issues. We take an active interest in casting votes at annual general meetings and extraordinary general meetings. Our investment team reviews resolutions, taking into account sustainability issues where appropriate.
Although each vote is assessed on a case-by-case basis, the portfolio managers generally support shareholder proposals that promote good governance, greater corporate transparency, accountability and ethical practices. For further information please refer to our Proxy Voting Policy which sets forth certain stated positions, including in relation to ESG proposals.
Yes - as a signatory, we support the following six Principles:
When we determine to invest in a company, we expect to do so for some years, and our relationship with the company’s board is an important part of our process. The investment team engages with company management on sustainability and related issues in regular meetings with key management and non-executive directors. These discussions also seek to provide feedback to companies on:
In addition to executive management, the investment team engages with non-executive directors such as the chair, where this is separate, and the supervisory board in a two-tier structure. Discussion topics include, among other issues:
The investment team is primarily responsible for responsible investing at the firm. For infrastructure strategies, we do not defer sustainability analysis to a dedicated ESG analyst, rather it is a responsibility of all investment team members.
Oversight of the sustainability components of the investment process is provided by the Sustainability Committee. The Committee includes the infrastructure Portfolio Managers as well as members of the global ESG strategy team.
ClearBridge has continually evolved its sustainability processes and methodologies, since initially incorporating a governance factor at inception in 2006, expanding this to ESG factors as Sustainalytics first Australian client in 2012 and continuing to evolve the process to the current ERM. We will continue to enhance the process as information, opportunities and risks associated with sustainability change.