Nikki Kemp

Specialist real estate private credit investment manager, Zagga, has reinforced its commitment to responsible investment by becoming a signatory to the UN-backed Principles of Responsible Investing (PRI).

The PRI is the world’s leading advocate for responsible investment. Joining its global network formalises Zagga’s commitment to embedding Environment, Social, and Governance (ESG) considerations across investment and operational decision-making and practices.

Nikki Kemp, Independent Chair of Zagga’s ESG Committee, Director of Singapore Green Finance Centre, and former World Economic Forum Executive, said this was an important milestone signalling Zagga’s determination to integrate ESG at every level.

“We’re pleased to be recognised as a PRI signatory,” Ms Kemp said. “This affirms Zagga’s commitment to responsible investment practices, and reflects its belief that responsible investment considerations are essential to managing risk and delivering sustainable returns for investors.

“Just as alternative assets have become more mainstream, ESG has moved from the periphery to the core of responsible investing. ESG is not just about doing good, it is proven to improve investment outcomes.”

PRI signatories commit to six core principles, incorporating sustainability-related factors into investment analysis and decision making through to disclosures and reporting.

David Atkin, CEO at PRI, welcomed Zagga’s decision, noting it reflects the growing number of investment managers aligning with global responsible investment standards.

”We are delighted to welcome Zagga on board as a signatory to the PRI. Incorporating sustainability-related factors into analysis allows investors to gain sight of additional credit risk throughout the deal cycle, allowing them to make better-informed decisions and enhance long-term value.

“Zagga’s commitment to responsible investment reflects a growing recognition of the importance of such analysis across all asset classes, and we look forward to working with them in the future.”

Growth with responsibility

Australia’s private credit market has experienced significant growth and is now valued at AUD $205 billion, with approximately 17 percent (~AUD $85 billion) allocated to commercial real estate loans^[1] .

Zagga is one of a growing number of private credit managers to formalise its commitment to responsible investing, helping to raise the standard across the sector and reflecting the rising demand from wholesale and institutional investors for greater ESG alignment across alternative asset classes.

Alan Greenstein, Zagga CEO and Co-Founder, said PRI signatory status underscores Zagga’s commitment to best practice.

“Private credit has become a core part of well-diversified portfolios as investors look to diversify risk away from public markets, bolster portfolio resilience, and secure stable, attractive income amidst increasing global volatility,” Mr Greenstein said.

“With growth comes responsibility. As an investor-first business, ESG is no longer a ‘nice to have’ but a must to ensure we deliver for the global investors who entrust us with their capital. We look forward to collaborating with other investment leaders, across asset classes and geographies, in the PRI community.”

Zagga established its independent ESG Advisory Committee in 2023, which is mandated to advise and oversee the integration of ESG considerations into Zagga’s investment and operational practices.

Since originating its first loan in 2017, Zagga has invested in excess of AUD $2.5 billion across more than 300 transactions in the Australian commercial real estate sector, returning over AUD $1.5 billion to its global investor base across more than 200 successful exits.

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Notes:
[1] Alvarez & Marsal Research Report, 2024

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Margaret Franklin

CFA Institute, the Global Sustainable Investment Alliance (GSIA), and Principles for Responsible Investment (PRI) have issued a new guidance that aims to bring greater understanding and consistency to terms used in responsible investing which will potentially reduce greenwashing by asset managers.The Definitions for Responsible Investment Approaches^[1] guidance is intended for investors, regulators, policymakers, and other market participants. For each of the terms below, CFA Institute, GSIA, and PRI have outlined a definition, detailed explanation, and a list of definitions that have served as the primary inputs for using the terms in practice.

• screening
• ESG integration
• thematic investing
• stewardship
• impact investing.

The collaboration between the three organisations was inspired by calls from regulators for voluntary standard setters to develop common terms and definitions to ensure consistency in the global wealth management industry. The guidance clarifies existing terms and definitions but does not create new terms. It also recognises important shifts that have taken place in responsible investment, with strategies now being applied to a wide range of investment styles and asset classes in both public and private markets. Prior versions of the definitions were, in some cases, limited to investments in listed companies.

Margaret Franklin, President and CEO at CFA Institute, said: “Technical terminology is an important part of responsible investment.  New terms are always emerging alongside new ideas, and definitions evolve over time.  It is important to standardise terms and definitions as practices mature so that professionals can communicate efficiently and effectively with each other as well as with clients, regulators, and other market participants. We believe this guidance will serve as a valuable resource for CFA charterholders, members, and candidates.”

Lisa Carroll, CEO of CFA Societies Australia, said:  “We welcome and encourage the Australian investment industry to adopt the definitions in this guidance to create greater consistency and understanding by all parties, including investors.

“Promoting the consistent and precise use of terminology in responsible investment will help to reduce greenwashing and introduce greater consistency among asset managers in developing and marketing responsible investment products. The guidance counters confusion about what different responsible investment strategies seek to achieve by clearly differentiating the objectives of approaches, such as ESG integration and impact investing,” Carroll said.  

“These definitions will create a consistent foundation for the continued professionalisation of responsible investment.”

David Atkin, CEO at PRI, said: “Responsible investment has grown significantly, and so have the expectations for clear and transparent communication. Investors need language that enables them to communicate their responsible investment practices accurately, succinctly, and consistently. By unifying around common definitions, we support our signatories and members to communicate with confidence.”

Simon O’Connor, Former Chair of the GSIA, said: “For many years, our organisations have been working to define and clarify the language of responsible investment.  This foundation of experience and expertise enabled us to come together with a common purpose to clarify and harmonise these definitions on a global scale. We now encourage the investment industry and regulators to adopt these definitions to create greater consistency.”

The guidance is available to read on each of the respective organisation’s websites:

CFA Institute, GSIA and PRI.

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Farrel Meltzer

Investment House Wingate has announced it has become a signatory to the Principles for Responsible Investment (PRI), an international network promoting sustainable investment through the incorporation of environmental, social and governance (ESG) considerations into decision-making.

Wingate’s PRI membership cements the firm’s dedication to responsible investment practices, recognising that ESG considerations are becoming of greater importance to a broad range of stakeholders, including business partners, co-investors, and staff.

“Our purpose at Wingate is to enlarge and enrich the lives of all of whom we come into contact,” said Farrel Meltzer, Wingate Founder and Executive Chairman.

The Wingate Way – patience, knowledge, risk mitigation, partnership, and alignment, has directed our investment decisions for almost two decades. Becoming a PRI signatory formalises our commitment to ESG considerations when assessing investment opportunities.”

David Atkin, CEO at the Principles for Responsible Investment, said: “We’re pleased to welcome Wingate as a signatory to the PRI. Responsible investment integration is a vital component across every stage and area of the investment decision making process, including in real estate, a sector which has significant potential to impact on core ESG issues. We look forward to working with Wingate on this important area.”

The UN Principles for Responsible Investment, to which Wingate is now a signatory, are:

• Principle 1: We will incorporate ESG issues into investment analysis and decision-making processes.
• Principle 2: We will be active owners and incorporate ESG issues into our ownership policies and practices.
• Principle 3: We will seek appropriate disclosure on ESG issues by the entities in which we invest.
• Principle 4: We will promote acceptance and implementation of the Principles within the investment industry.
• Principle 5: We will work together to enhance our effectiveness in implementing the Principles.
• Principle 6: We will each report on our activities and progress towards implementing the Principles.

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Alan Logan

TPT Wealth has become a signatory to the United Nations-supported Principles for Responsible Investment (PRI).

“Adoption of the PRI gives clients confidence that our investment practices are aligned with our business values,” said Alan Logan, General Manager of TPT Wealth.

“Taking this step allows us to strengthen relationships with new and existing investors such as universities, family offices and individual investors who prioritise sustainable outcomes. It also allows us to form important new partnerships with like-minded clients,” Mr Logan added.

The PRI’s six principles

The PRI’s six principles call for signatories to integrate responsible investment into their investment decisions:

• Principle 1: Incorporate environmental, sustainability and governance (ESG) issues into investment analysis and decision-making processes.
• Principle 2: Be active owners and incorporate ESG issues into ownership policies and practices.
• Principle 3: Seek appropriate disclosure on ESG issues by the entities in which a signatory invests.
• Principle 4: Promote acceptance and implementation of the Principles within the investment industry.
• Principle 5: Collaborate to enhance effectiveness in implementing the Principles.
• Principle 6: Report on our activities and progress towards implementing the Principles.

So far, the PRI has attracted over 5000 signatories, mostly investment managers, across 135 countries representing USD$121 trillion. There are 209 signatories from Australia.

“We’re pleased to welcome TPT Wealth as a signatory to the PRI,” said David Atkin, CEO at the Principles for Responsible Investment.

“Now more than ever, it’s vital for responsible investors to come together and work towards common goals, for the benefit of the planet and our society. We look forward to working alongside TPT Wealth to realise these goals.”

On a practical level, TPT Wealth’s commitment to the PRI underscores a number of changes to the business over coming months. TPT Wealth will include ESG considerations in investment decisions, and allows the business to form new alliances and joint ventures with firms that are also PRI signatories.

In addition to adopting the PRI, over the past six months TPT Wealth has taken other measures to understand the impact of our operations on the environment.

TPT Wealth is pleased to be following the lead of parent company MyState Limited. As a proud Tasmanian company, we understand the importance of our operations mitigating our environmental, social and governance (ESG) impacts.

This year’s MyState Limited annual report includes disclosures about our carbon footprint, made in line with the Taskforce on Climate-Related Financial Disclosures’ (TCFD) requirements. The TCFD allows organisations to make consistent with and comparable climate-related disclosures.

TPT Wealth looks forward to updating the market on further initiatives to support improved economic outcomes in the future.

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Elizabeth Proust

SuperFriend, the national workplace mental health and wellbeing organisation, has appointed leading business figure Elizabeth Proust as the new Chairperson to its Board of Directors.

Bringing over 30 years’ experience in leadership roles across private and public sectors in Australia, Ms Proust has an outstanding record of change management programs in large and diverse organisations.

With eight years’ experience with the ANZ Banking group, including four years as Managing Director of Esanda (ANZ’s asset finance company), Ms Proust has demonstrated an exceptional ability to turn around organisations, making major changes and efficiencies, while delivering customer services.  In this role, Ms Proust was a member of the ANZ Management Board, and ANZ’s most senior woman.

She has prior board experience as the Chairperson of a Federal Government Statutory Authority, and as a Director of various publicly listed companies.  Ms Proust was also made an Officer of the Order of Australia in 2010 for her service to the community through contributions to the arts, charities, and educational bodies.

SuperFriend Chief Executive Margo Lydon said SuperFriend was delighted to announce Ms Proust’s appointment, acknowledging that her extensive leadership and business experience provides her with excellent insights for SuperFriend’s continued evolution.

“We are excited to welcome Elizabeth as our new chairperson, she has a rich history of work in charitable, university and business boards, giving her a unique perspective on SuperFriend’s policies and initiatives to improve mental health in Australian workplaces.”

“With such a vast industry experience, Elizabeth has established herself a dynamic leader with strong strategic skills who has a successful track record for change management programs in diverse organisations.” Ms Lydon added.

Commenting on her appointment, Ms Proust said: “I am greatly looking forward to working with SuperFriend to help improve the mental health and safety of Australian workplaces, through implementing accessible initiatives and policies to create thriving environments for all people”.

Ms Proust will take over from Cbus Chief Executive David Atkin who served as the SuperFriend Chairman for over three years.

“SuperFriend and Cbus will continue to have a close relationship and we thank David for his outstanding contribution to our continued growth and success. We wish David the very best in his next career step and look forward to seeing what he does next,” Ms Lydon concluded.

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Mr Atkin, previously the CEO of Cbus Super for 12 years, will assume operational leadership of AMP Capital in an interim capacity until June 2021, while AMP continues its search for a permanent CEO to drive AMP Capital’s growth strategy.

Mr Atkin is a highly respected leader in Australia’s wealth and investment management sector with a demonstrated ability to lead change and deliver growth, including more than tripling funds under management during his time at Cbus.

Mr Atkin has led significant business transformations in previous roles including changing the investment strategy and substantially upgrading client technology. He has taken a leading role in sustainability and responsible investment within the superannuation industry in Australia, as well as globally.

Mr Atkin will report to AMP CEO Francesco De Ferrari who will continue in a dual role as AMP Limited CEO and Interim AMP Capital CEO, leading the strategic transformation of AMP and ensuring focus on the ongoing portfolio review.

AMP Chief Executive Francesco De Ferrari commented: “David is a highly regarded leader within our industry, and I’m pleased we have been able to appoint an executive of his calibre into this interim role to help drive our transformation and deliver our strategy.

“Having led three major superannuation funds in the Australian market, David brings a deep knowledge and understanding of clients and their expectations. He has delivered improved and sustainable results in each of the organisations he has led and achieved respect through a values-based approach.

“David will bring his accumulated experience of wealth and investment management and of reshaping organisational culture, including expertise in building diverse and inclusive leadership. We are pleased he will join us immediately, strengthening AMP Capital’s leadership team as we implement our strategy.”

David Atkin commented: “AMP Capital is a high-quality asset management business, which has earnt the respect of its clients around the world over many years. I look forward to supporting Francesco deliver AMP Capital’s transformation strategy and working with the highly capable team to take the organisation forward.”

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Rose Kerlin

Workplace mental health organisation SuperFriend has appointed AustralianSuper’s Rose Kerlin as its newest fund representative Director, effective May 2020, alongside two new appointments to the Board’s Expert Advisory Committee.

Ms Kerlin joins the Board following the recent departure in April of long-standing Director Paul Schroder, who contributed significantly to SuperFriend’s growth and success during his ten-year term.

SuperFriend Chair and Cbus CEO, David Atkin, said “Rose’s passion for members and deep knowledge of the complex superannuation sector are fantastic assets for SuperFriend’s Board. We welcome her strategic and practical perspectives and commitment to improving Australian workers’ mental health and wellbeing.”

Ms Kerlin leads AustralianSuper’s Membership group, which manages relationships with businesses and unions. She joined AustralianSuper in 2010 and worked in a variety of member-focussed roles across three states, before joining the Executive team in December 2016.

Previously a National Director at the Finance Sector Union of Australia, Ms Kerlin holds a Bachelor of Economics (Social Sciences) from the University of Sydney, a Diploma of Financial Planning, and is a Graduate of the Australian Institute of Company Directors.

SuperFriend CEO, Margo Lydon, said “Rose is well known in the industry for her intelligence and tenacity, and brings fantastic insights into the needs of the 300,000 workplaces her fund supports. I’m so pleased to welcome her to the Board, and look forward to seeing what we will achieve together.”

Speaking of the appointment, Ms Kerlin said “After watching SuperFriend grow over the years, I’m so pleased to be joining its Board. The health and economic impacts of COVID-19 are bringing renewed urgency to supporting workplace mental health, and I look forward to being part of the solution.”

The Board’s Expert Advisory Committee also recently welcomed Zurich and OnePath’s Head of Mental Health & Wellness, Life Insurance, Maria Falas, and LUCRF Super’s Executive Manager Distribution, Chris Deakin. Overseen by occupational and public health physician and SuperFriend Board Director Professor Niki Ellis, the Committee provides strategic advice on the design of SuperFriend’s mental health solutions and research.

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“Sarah, Niki and Mitch’s appointments will complement our longstanding and thriving Board. These important appointments complete our Board growth from four Directors to eight as part of our growth strategy and governance review,” said SuperFriend Chair, David Atkin.

“Their experience and collective passion for supporting mental health in workplaces will amplify our shared vision that all Australian workplaces are mentally healthy. We are delighted to welcome three leaders of such high calibre to the SuperFriend Board.”

Sarah Guthleben, who joins as a Partner Fund representative, has more than 19 years’ experience in the human resources and financial services industries. She is currently Executive Officer People, Capability and Enablement at Equip Super.

Professor Niki Ellis joins the SuperFriend Board as an Independent Director, bringing over two decades of executive experience in both private and public health sectors. ProfessorEllis’ has served on various Boards since 1994 and brings a combination of  experience in academia, research management, innovation in health and disability services delivery and insurance medicine.

The third appointment is Independent Director Mitch Wallis. Mr Wallis recently founded an international not-for-profit mental health campaign to eradicate stigma called the ‘Heart On My Sleeve Movement’. He was also appointed the first ambassador for the Australia & New Zealand Mental Health Association. He is an emerging leader with a lifelong mission to empower others to overcome suffering and reimagine the healing power of the mind through storytelling, community and technology.

SuperFriend CEO, Margo Lydon said: “All three appointments mark the growing diversity of our Board and will significantly help champion SuperFriend as a leader of delivering practical solutions for the mental health and wellbeing of all Australians in workplaces.”

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Jacki Johnson

The leaders and senior executives of Australia’s major banks, superannuation funds, insurance companies, financial sector peak bodies, civil society and academia are coming together to set out a roadmap for realigning the finance sector to support greater social, environmental and economic outcomes for the country.

The Australian Sustainable Finance Initiative has today been unveiled – an unprecedented collaboration to help shape an Australian economy that prioritises human wellbeing, social equity and environmental protection, while underpinning financial system stability, in what it says is a ‘critical decade’ ahead.

Modelled on international best practice already seen in groups including the European Union’s High-Level Expert Group on Sustainable Finance and the UK’s Green Finance Taskforce, the Australian Sustainable Finance Initiative will be guided by a Steering Committee charged with developing a set of recommendations to enable the finance sector to contribute more systematically to the transition to a more resilient and sustainable economy.

IAG Group Executive Jacki Johnson, co-Chair of the Initiative, said: “The roadmap we create will include pathways, policy signals and frameworks that will better enable the financial services sector to contribute to delivering on international commitments, such as the Paris Agreement on Climate Change and the UN Sustainable Development Goals, while underpinning economic stability and prosperity for Australia.”

An Australian Sustainable Finance Roadmap will be delivered by the Steering Committee in 2020 with recommendations that will assist the financial services sector to:

1. Mobilise capital to deliver on national and global sustainable development and climate goals;
2. Enhance the sustainability, resilience and stability of the financial system by embedding sustainability, climate and human rights considerations into financial markets and products;
3. Ensure better informed financial decision making by enhancing disclosures and transparency on environmental, social and governance risks and opportunities; and
4. Deliver a financial system that meets community expectations around sustainability.

An Expression of Interest process in late 2018 called on experts active in sustainable finance to nominate to be part of the Steering Committee.

The following members and observers were appointed

Members

• Anna Skarbek, CEO – ClimateWorks
• Christina Tonkin, Managing Director Loans and Specialised Finance – Institutional – ANZ
• Damien Walsh, Managing Director – Bank Australia
• David Atkin, CEO – Cbus
• Didier Van Not, General Manager Corporate and Institutional Banking – Westpac Banking Corporation
• Emma Herd, CEO – Investor Group on Climate Change
• Eric Williamson, Executive General Manager, Corporate Finance – National Australia Bank
• Jacki Johnson (Co-Chair), Group Executive People, Performance and Reputation – IAG
• John Hewson, Chairman – Business Council for Sustainable Development Australia
• Mark Joiner, Chairperson – QBE Australia Pacific
• Mark Senkevics, Managing Director Head Australia and New Zealand – Swiss Re
• Matthew McAdam, Director Asia Pacific – Principles for Responsible Investment
• Michael Thorpe, Managing Director Institutional Banking and Markets – Commonwealth Bank of Australia
• Phil Vernon, Managing Director – Australian Ethical Investment
• Richard Brandweiner, CEO – Pendal Group
• Robynne Quiggin, Professor – University of Technology Sydney, Business School
• Sarah Barker, Special Counsel – Minter Ellison
• Simon O’Connor (Co-Chair), CEO – Responsible Investment Association Australasia

Observers

• Geoff Summerhayes, Executive Board Member of APRA, Executive Committee Member of the International Association of Insurance Supervisors and Chair of the Sustainable Insurance Forum.
• Eric Usher, Head of the UN Environment Program Finance Initiative, Economy Division, UN Environment

Simon O’Connor, Initiative Co-Chair and CEO of the Responsible Investment Association Australasia (RIAA), says “Issues such as climate change and human rights have become material to business and the financial services community. Climate change was recently described by the Deputy Governor of the Reserve Bank of Australia as a ‘systemic risk’ to the stability of our economy, and APRA emphasised last week that climate risks are ‘material, foreseeable and actionable now’ ”.

“The financial services sector is both exposed to those risks, as well as having an essential role in funding and underwriting a future Australia, providing the capital necessary to deliver on sustainable development and climate-related commitments. Through a greater alignment between the financial services sector and these sustainability goals, the sector can both deliver for Australians while building a better, more stable and sustainable financial system.”

“This unique and high-level collaboration will set out a roadmap for achieving this goal and shows the willingness of the financial services sector to step up and play an active role in building a more sustainable and resilient economy for all Australians,” said Mr O’Connor.

Jacki Johnson says “a sustainable and resilient economy is a necessity, not an option, and is the foundation for ensuring Australia’s prosperity throughout the 21st century.”

“As we approach 2020, we are rapidly entering a critical decade for managing climate change and other risks,” said Ms Johnson.

“Australia has made a number of commitments to international targets. Achieving these goals extends beyond social or environmental objectives – it’s an economic and financial necessity. Our economy simply cannot prosper in an environment of ever-increasing severe weather events and the subsequent broader impacts these will have.”

“Delivering on these goals requires not just government policy and commitment, but business and finance leadership. Achieving these goals presents a sizeable economic and social opportunity.”

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They replace long-standing Directors David Atkin and Angela Emslie as appointed representatives of partowners Cbus and HESTA, respectively. Ms Emslie will remain on the Board as an independent Director.

Frontier Chairman Gabriel Szondy thanked Mr Atkin for his service to the Board and warmly welcomed the two incoming Board members.

“Frontier has had a number of fantastic Directors over its history and both David and Angela are foremost among them. We thank David for his contribution, which has been significant, and we congratulate Angela on her appointment as the Board’s second independent Director”, said Mr Szondy.

“We look forward to bringing in two people of the calibre of Deborah Cole and John Edwards. Both are experienced superannuation fund trustees, with extensive business acumen and practical knowledge of critical areas such as governance, economics and business administration.”

Dr Deborah Cole is CEO of Dental Health Service Victoria and was appointed to the HESTA Board in 2015. She has an extensive background in the health and community services sector and holds several qualifications, including an MBA, across Medical, Health and Leadership disciplines.

Dr John Edwards is a former member of the Board of the Reserve Bank of Australia and head of economic planning and development for the Kingdom of Bahrain. Dr Edwards was appointed to the Cbus Board in 2017. His qualifications include both a Master and Doctorate of Philosophy (Economics) and a Bachelor of Arts.

Frontier is enjoying a period of sustained growth despite pressure on the asset consulting sector from superannuation fund consolidation and the effect of larger internal investment teams. Mr Szondy believes the new-look Board will lead the firm into a further phase of development and growth.

“The Board is resolute in its commitment to retain and build on the fundamental strengths, such as an independent advice model, that have made Frontier Australia’s number one asset consultant. But the time is right to pursue additional strategic directions to take the firm forward for the ultimate benefit of our clients and their beneficiaries”, Mr Szondy said.

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