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Investment stewardship

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With a focus on understanding and managing material environmental, social and governance (ESG) risks and opportunities, including climate change, TCorp is dedicated to achieving long-term resilient returns.
Our commitment to investment stewardship is founded in our fiduciary duty, risk-based total portfolio investment model and the integration of material ESG risks and opportunities into investment decision-making. We are active owners of the assets we manage on behalf of clients and the state of NSW.

Pillars of investment stewardship

Through our 5 pillar investment stewardship approach, we assess and manage material ESG risks and opportunities.

Integration

Our investments are exposed to a range of systemic ESG risks across the total portfolio which are difficult to measure, price and predict using traditional investment tools, but are expected to have wide-reaching impacts on investment outcomes. Through our risk-based investment model, we aim to systematically integrate material ESG risks into our total portfolio. Our ESG Investment Risk Framework enables us to identify the most material ESG risks facing the total portfolio over the long term and how these can be managed or mitigated.

Active ownership

We are “active owners” of our investments through proxy voting and engagement to protect and enhance long-term investment outcomes.

Collaboration

We collaborate with like-minded investors and peers to encourage the development of industry standards around sustainable finance, to create a more resilient financial system.

Exclusions

We do not generally believe exclusions are the most effective means of managing long-term investment outcomes. Where we are instructed to do so by the NSW Treasurer, we will exclude investments. Consistent with NSW Government policy, TCorp endeavours to exclude tobacco manufacturers and Russian investments across directly held assets and requires its investment managers to comply with these exclusions.

Disclosure

We monitor the implementation of our investment stewardship commitments and report regularly to clients, management and the TCorp Board on our activities and outcomes.

Climate change

At TCorp, we believe understanding and managing climate-related risks and opportunities will result in more resilient long-term investment outcomes. Our approach to climate risk is supported by climate principles that guide investment decision-making, which includes a clear commitment to prioritise delivery of risk-adjusted returns for our clients.

Examples of climate-related investment activities we have undertaken include:

  • Integrating climate risks and opportunities into our investment model to protect and enhance long-term investment outcomes for clients.
  • Set an ambition to achieve net zero portfolio emissions by 2050 across our aggregate portfolio, consistent with NSW Government policy. We call this an ‘ambition’ rather than a ‘commitment’ as we recognise the path to net zero is uncertain and we cannot achieve this ambition alone. We have identified key dependencies that will be necessary to achieve our ambition: more ambitious global climate policies, corporate decarbonisation and improved measurement of carbon emissions.
  • Developed a high level, long-term Net Zero Roadmap and a 3-year Climate Action Plan with specific actions we will take, subject to the evolving needs of our portfolios and clients.
  • Invested in transition aligned investments that we expect to benefit from the long-term shift to a low carbon economy.

For further information

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TCorp pays respect to the Traditional Custodians and First Peoples of NSW and acknowledges their continued connection to country and culture.