2024 ESG and Sustainability Report
We are pleased to publish Alphinity’s fourth Environmental, Social and Governance (ESG) and Sustainability Report. This report highlights key ESG and sustainability outcomes and achievements for the 2024 calendar year across all Alphinity strategies.
2024 ESG and Suainability Report
This report presents over 100 case studies and examples, and showcases our efforts in ESG integration, engagement research, framework development, and proxy voting against our five pillars of responsible investing.
Alphinity’s ESG and sustainability team prepares this report and manages the wide range of activities that fall under our five pillars of responsible investing. Delivery of these activities, however, is the responsibility of the entire investment team.
We believe that ESG integration plays an important role in helping us to fulfil our fiduciary duty to maximise returns and manage risks on behalf of our clients. It ensures our analysis and investment decisions will consider all material drivers of risk and opportunity, including non-financial aspects such as climate change, workforce culture, social licence, controversies, and governance. As such, it is essential to our ongoing success as an investment manager.
Key Takeaways
- Over 100 company examples and case studies highlighted, showcasing real-world applications of ESG principles across various industries.
- Dedicated sections on eight key ESG themes for the period, including climate change, nature, workforce, human rights and modern slavery, First Nations, digital technology, reputation and social license and governance.
- Integrated and risk-based approach to ESG and sustainability supported by internal and external ESG specialists.
- Alphinity’s sustainable strategies aim to invest in companies that generate products and services that have a net positive alignment to the United Nation’s Sustainable Development Goals (SDGs).
Pillars of responsible investing
The following outlines our five pillars of responsible investing and key 2024 updates. Each pillar is supported by goals and related objectives.
ESG Integration
We integrate ESG factors into investment decision making
Alphinity seeks to identify and invest in attractively valued, quality companies which we believe are in, or are about to enter, an earnings upgrade cycle. Integrating environmental, social and governance (ESG) considerations into investment decisions is the responsibility of the portfolio management team with the support of the ESG team. It is viewed as a key component of fundamental investment analysis.
Stewardship and active engagement
We are active managers and focus on using our influence to encourage better ESG outcomes where we believe it can improve risk and return outcomes
As investors, we have the ability to influence the behaviour and actions of companies that we own. We take this responsibility very seriously and are committed, where possible, to use this influence to reduce environmental, social and governance risks over the short, medium and longer-term to maximise value for our clients.
Sustainable investing
We have two dedicated sustainability strategies structured around the UNSDGs
Alphinity has two sustainable strategies, both of which are available to investors through our funds, or as customised mandates. These funds are the Australian Alphinity Sustainable Share Fund and the Alphinity Global Sustainable Equity Fund. These strategies aim to invest in companies that generate products and services that have a net positive alignment to the United Nation’s Sustainable Development Goals (SDGs), exceed our minimum ESG criteria, and which are also identified as undervalued and within an earnings upgrade cycle.
Thematics
We consider, research, and assess key ESG and sustainability thematics
This year, we have identified 8 material ESG thematics and 30 issues which are representative of the wide range of ESG risks and opportunities that we managed across our portfolios in 2024.
Transparency
We disclose proxy activities, portfolio holdings and have a public ESG Policy and Stewardship Policy which are all available on the website.
This report contains over 100 case studies and company examples. As in previous years, it includes a list of all company engagements, reports on our financed and operational emissions footprints, and details the SDG alignment outcomes for our two sustainable funds.
ESG Resources
2024 ESG and Sustainability Report
2023 ESG and Sustainability Report
2022 ESG and Sustainability Report
2021 ESG and Sustainability Report