Our Responsible Investment Philosophy
Fidante’s approach to ESG is centred and backed by Challenger Group’s leadership in both our Corporate Sustainability and Responsible Investment programs.
At Fidante, we believe:
- We are stewards of capital and our contribution to society is an important driver for our business and the enhancement of the performance of our customers’ investments;
- The economy is in transition to the sustainable economy. We are cognisant of the future economy into which our customers will live. We have the opportunity to make a positive difference in how that future looks through active ownership and investment activity;
- Environmental Social and Governance (ESG) issues can have a material impact on long-term investment performance;
- The integration of ESG factors into the investment process helps us and our investment managers to build a more resilient organisation that mitigates related financial and non-financial risks.
We look to partner with Managers that:
- value responsible investment and integrate ESG factors into the investment process;
- recognise their role as active stewards of capital, with engagement as core tool in their investment process to fulfil their stewardship obligations and fiduciary duty to act responsibly and exercise reasonable care and diligence.
We are committed to:
- helping our investment managers to achieve best practice ESG integration within their investment processes by providing them with tools and specialist resources
- engaging with our stakeholders and key industry bodies to advocate for our investment managers and the funds management industry on material issues that matter most to us.
Our ESG team
Our ESG team has extensive experience working with our investment teams and their clients. Our relationships and knowledge of our Managers investment processes allows us to understand their ESG beliefs and goals and to identify areas for continuous progress in integration.
We believe that the consideration of ESG risks and opportunities as part of the investment process is critical for the Group and our investment managers to build a more resilient organisation that mitigates financial and non-financial risks.
Our key material issues that form part of corporate sustainability strategy include:
- Climate Change
- Diversity & Inclusion
- Human Rights
- Our stewardship approach
When selecting our investment managers, we undertake a detailed selection process which includes an assessment of their ESG commitment and capability.
We seek to partner with investment managers who align with Fidante’s ESG values and are committed to continuous progress in ESG integration. This includes assessment of:
- ESG pravalence in asset class
- ESG process
- ESG beliefts and responsibilities
- ESG integration in investment decisions
- Onboarding and Policy creation
- 2015 - Signatory to the United Nations-backed Principles of Responsible Investment (PRI)
- 2016 - Responsible Investment Policy developed using an integrated approach to ESG
- 2017 - ESG champions appointed in investment teams
- 2018 - Appointment of Fidante ESG Specialist
- 2018 - All Investment Managers become signatories to the PRI
- 2020 - Challenger Group awarded A rating in PRI and release first Climate Change Statement
- 2020 - Challenger Group becomes a signatory to the Investors against Slavery and Trafficking Initiative (IAST)
- 2021 - Challenger Group publish first Modern Slavery Statement
- 2021 - ESG Steering Committee established
Proxy voting is a means by which Fidante’s investment managers are able to demonstrate their interest in the governance practices of companies. By exercising their right to vote, our affiliates can have an influence on the corporate governance of the companies in which they invest.
Fidante follows the PRI Principles on corporate governance and proxy voting.
Fidante is part of the Challenger group. In FY24, the Challenger Limited Board introduced management of Sustainability risks (including as per the definition in the Regulation (EU) 2019/2088 of the European Parliament and of the Council of 27 November 2019 on sustainability‐related disclosures in the financial services sector (“SFDR”)) as a key performance indicator into Challenger’s executive performance framework for the Leadership Team, including the CEO. The measure assesses the effectiveness of ESG integration across Challenger and our affiliates.
As the executive performance framework forms the basis of assessing short term remuneration outcomes for the Leadership Team, the achievement of the management of Sustainability risks measure will be considered as part of this decision. In addition, the Challenger Board’s Group People and Remuneration Committee reviews executives’ individual and collective accountability for the management of risk across our business. The Board can decide to apply downward adjustments, malus or clawback to the CEO and/or an executive’s variable remuneration and deferred awards, if they fail to meet risk management expectations. Variable remuneration for the Leadership Team includes short-term and long-term incentives.
Our Sustainable Offering: UK & Europe
Proterra Asia is committed to investing responsibly because investing in the food sector has the potential to create positive change, from individual lives and local communities to sweeping global planetary impacts.
Responsible investment and ESG are at the heart of Resonance’s investment philosophy. Resonance seeks to make investments that make a net positive impact on the local and global environment.
Our Sustainable Offering: Australia
Alphinity Investment Management is a specialist, active manager of Australian and global equity funds. Committed to investing responsibly, Alphinity believe that companies with good ESG practices and processes have a better chance of outperforming over the long term as they are better placed to adapt to the changing world.
At Cultiv8 Funds Management (Cultiv8), we take an active, collaborative approach to solve real problems, develop solutions to increase farm productivity, modernise supply chains and create novel high-value products. We believe that impact is achieved when opportunities are sustainably commercialised.
Impax aspires to best practices across all aspects of the management of its listed and private equity investments. ESG considerations are embedded within our rigorous ten step investment process for listed equities. Failure by a company to reach the required ESG score will prevent our investment.