Responsible Investing

Responsible Investing

Plato Investment Management Limited (Plato) recognises its duty to behave responsibly in its business activities and towards those whom its actions affect. Plato’s views on ESG are consistent with and support the Ten Principles of the United Nations Global Compact.

As an investment manager, we believe that a high standard of business conduct, as well as a responsible approach to environmental, social and governance (ESG) issues makes good business sense and enhances shareholder value. Conversely, poor management of these issues may pose a risk to the reputation and value of a business.

UNPRI Member

Plato signed the UNPRI in 2011 after completing significant work in investigating the integration of ESG scores into investment processes in Australia. Plato continues to source new and updated ESG data in order to develop better understanding of the impact of ESG and sustainability issues upon risks and returns in our investment strategies. Plato has also signed up to receive governance issue notifications via the UNPRI clearing house.

To find out more about the UNPRI, please visit their website.

ESG RA Member

Plato is a founding member of ESG Research Australia, which aims to encourage the development and provision of ESG research on listed companies by brokers within Australia.

To find out more about ESG Research Australian, please visit their website.

Proxy Voting and Engagement

Plato actively votes proxies and engages with companies on significant issues such as Woodside’s aborted selective share buyback. For more details on Plato’s proxy voting please refer to Plato’s Proxy Voting Policy.

Montreal Carbon Pledge

Plato has become a signatory to the Montreal Carbon Pledge, and to this effect has contracted with service providers to provide data to enable Plato to measure and monitor the carbon intensity of our portfolios. For clients who want to lower the carbon intensity of their investment portfolios, Plato can provide lower carbon intensity portfolios than standard market benchmark portfolios. Our research shows that one can considerably reduce the carbon intensity of enhanced index portfolios without significantly impacting other broad portfolio characteristics. This research is available on request.

Montreal Pledge: Plato’s aggregate Carbon Footprint (as measured by MSCI) is 3.7% lower than the exposure of our ASX200/300 benchmarks as at the end of November 2018.

In addition, our aggregate portfolio carbon intensity (Total CO2 emissions divided by revenue) is 2.3% lower than the benchmark index.

Plato monitor our CO2 exposures continuously and have capabilities to target exposure levels for our clients that wish to have a CO2 reduced investment strategy that also delivers on performance objectives.

ESG Related Research

From time to time Plato conducts research into ESG related factors. ESG related research includes:

  • Assessing executive remuneration: Does performance Pay? (2011)
  • Implementing ESG tilts in an Australian equity portfolio (2011) paper available on request.
  • Implementing Carbon reduction in an Australian equity portfolio (2015) paper available on request.
  • Plato’s ESG Policy