SRI - AMP's 'Constructive Engagement'
6 February 2002 at 12:02 pm
Recent research that puts Australia’s Socially Responsible Investment (SRI) market at over $10.5 billion has been described as a conservative ‘starting point’ by one organisation.
AMP Henderson Global Investors is the Fund Management arm of AMP Limited based in Sydney and London and says it has been investing in socially responsible companies for over 20 years.
And while many newcomers are only now considering the importance of SRI, AMP Henderson says it is has hard edge points of difference all aimed at helping companies move forward.
AMP Henderson’s Head of SRI (Australia), Michael Anderson says as a leading institutional investor, it has the potential to influence companies to improve the way they manage their social and environmental impacts.
Anderson says this process is ‘constructive engagement’. One of its working criteria is maximum returns and maximum social impact.
The SRI team carries out research, prepares position and policy papers, talks to stakeholders such as unions and green groups, and focuses on world’s best practice.
Anderson says one of the ‘crunch’ points comes when AMP Henderson lets a company know how its performing and whether it will be investing in it or not!
He says for many companies though there is a reputational benefit in having a strong SRI case. And he believes that the SRI market is much larger than the current estimates.
Michael Anderson has been involved in the investment and equity markets since 1984. During his career he took a year off to study theology and says he jumped at the chance to head up the AMP Henderson SRI Team.
Ian Woods who has international experience in environmental issues handles the environmental/ social side of the SRI team.
Anderson says the team is looking currently at blue chip, traditionally based companies and considering their corporate responsibility in terms of the way they deal with employees, the community, the environment and corporate governance and in particular how they deal with shareholders concerns.
He says AMP Henderson looks for sustainable growth at a reasonable price!
The SRI team has a dedicated web site where visitors can see the research and find out more about the companies it invests in and its Sustainable Future Funds.
Check out the web site at www.sustainablefuturefunds.com.