Maintaining high governance standards
Our promise is to help people own tomorrow. This is a responsibility we take seriously and our governance framework is designed to provide the right structure and review processes to deliver on our promise for many years to come.
Our corporate governance takes in a range of factors including engaging with our shareholders, the composition and responsibilities of our board and committees, how we manage risk, and acting ethically and responsibly.
Our approach to investment
There is a clear link between an organisation's environmental and social impacts, ethical practices and quality of its corporate governance and its long-term business success.
AMP Capital is one of the most experienced managers of responsible investment funds in Australia, and is well placed to influence better outcomes for investors, shareholders and the community. An integral part of AMP Capital's investment process is to assess the environmental, social and governance (ESG) factors that can affect an investment. A key motivation for considering these issues is to gain deeper insight into areas of risk and opportunity that could impact the value or performance of an investment. Another is on ethical grounds.
In March 2017, AMP Capital furthered its commitment to responsible investing by introducing a new decision-making framework where, in exceptional circumstances, it may exclude companies or sectors on ethical grounds within its entire investment portfolio.
The new framework was incorporated into AMP Capital's existing ESG and Responsible Investment Philosophy, and applied across the business.
Under the framework, AMP Capital considered all sectors in which it invests and concluded that manufacturers of tobacco, cluster munitions, landmines, biological and chemical weapons did not meet the minimum ethical standards required and excluded them from its investable universe. The framework makes AMP Capital one of the largest investment managers in Australia to implement exclusions on tobacco, cluster munitions, landmines, biological and chemical weapons across all its portfolios where it is responsible for the investment management.
In-house ESG investment research
Well before becoming one of Australia's first signatories to the Principles for Responsible Investment in 2007, AMP Capital dedicated resources to understanding the impact of ESG factors.
AMP Capital's in-house ESG investment research team produces thought-leading research, which is integrated into AMP Capital's investment decision-making and active ownership practices. The team's ESG insights and company ratings influence investment guidelines and policies, research and analysis, proxy voting activities and engagement with other company boards and management teams.
The AMP Capital ESG Investment Research team make summaries of its research public through the AMP Capital website.
It is important to AMP Capital that companies which are selected for clients' portfolios are well-governed. This is why AMP Capital actively engages with the boards and management teams of companies and uses its voting power to encourage corporate behaviour that is responsible and in the best interest of shareholders. Through this engagement, AMP Capital encourages sound decision-making and risk-management, appropriate capital allocation, good board composition, fair remuneration and open and honest disclosure.
AMP Capital's commitment to ESG research is well recognised in the sector. As such, the ESG team has had the opportunity to work with companies on a range of issues and influence better outcomes for investors, shareholders and the Australian community.
- We are a signatory to the United Nations Principles for Responsible Investment.
- We are a signatory and participant in the Carbon Disclosure Project.
- We are a member of the Investor Group on Climate Change.
Read a range of papers and research from AMP Capital on responsible investing.
Read AMP Capital's bi-annual corporate governance report.
Responsible Investment Benchmark Report
The Responsible Investment Association Australasia was established in 1999 to promote sustainable and responsible investing in Australia. The annual Benchmark Report, of which AMP Capital is a project partner, is an initiative that provides insight and analysis for the responsible investment market in Australia and New Zealand.
View the latest report.
Policies and investment guidelines
Further information on our policies and investment guidelines is provided below.