RIAA ESG Research (non-broker) Award 2020 - Report - Responsible ...
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RIAA ESG Research (non-broker) Award 2020 Report
Table of Contents
1. Summary ....................................................................................................................................................3
2. Representation ..........................................................................................................................................3
3. Research Topics .........................................................................................................................................4
4. Award Criteria ............................................................................................................................................4
5. Research Assessment.................................................................................................................................5
6. Award Winner ............................................................................................................................................6
7. Nominated Research .................................................................................................................................7
8. Verification, assessment & judging processes...........................................................................................7
9. About RIAA .............................................................................................................................................. 10
12020 Award Recipient
RIAA’s ESG Research Award
– recognising excellence in investor relevant ESG research
Best Piece of Investor Relevant ESG Research (non-broking firm)
Modern Slavery Reporting – guide for investors
ACSI and RIAA Human Rights Working Group
Mans Carlsson-Sweeny - Ausbil Investment Management Limited
Kate Griffiths and Ian McIlwraith - ACSI
21. Summary
In 2018, RIAA presented a new ESG Research (non-broker) Award to complement the ESG Research
Australia (ESG RA) Awards, aiming to recognise the growing quality and proliferation of ESG research
beyond brokers. RIAA seeks to encourage the ongoing growth, quality and usability of ESG research as a
source of information for responsible investors.
Beyond the traditional broking community, thematic investor targeted ESG research is now being
produced by fund managers, ESG research houses, industry groups, as well as NGOs.
This award is determined based on nominated research as popularly voted on by RIAA and ESG RA
members and assessed against the Award criteria of usability, rigour, innovation and originality by the
RIAA ESG Research Judging Committee (Judging Committee).
The winner for this year’s RIAA’s ESG Research Award – recognising excellence in investor relevant ESG
research: Best Piece of Investor Relevant ESG Research (non-broking firm) is:
• Modern Slavery Reporting – guide for investors by Mans Carlsson-Sweeny of Ausbil Investment
Management Limited and Kate Griffiths and Ian McIlwraith of ACSI.
RIAA received 11 eligible nominations for the award from 8 different fund managers, ESG research
houses, NGOs, academic institutions and policy think tanks.
Topics covered climate risk in private real estate portfolios, fire arms control, identification of ESG risks
and opportunities, health and safety in the workplace, engagement, ethical funds ratings, heated
tobacco products and climate exposure in the ASX 300 among others.
2. Representation
Eleven (11) eligible nominations were received from 8 different fund managers, ESG research houses,
NGOs, academic institutions and policy think tanks.
Five nominations were received from ESG research houses being Sustainalytics, MSCI ESG Research, and
ISS caer.
Five nominations from NGOs and associations individually or in combination presented research for
assessment; these being Market Forces, ACSI, Australian Centre for Corporate Responsibility and Ethical
Advisers Co-Operative.
One fund manager was represented in the nominated research being Kiwi Wealth from New Zealand.
33. Research Topics
The nominated research explored a diverse variety of topics and included research reports
from both Australia and New Zealand.
The nominated research covered environmental, social and corporate governance topics and included
funds ratings, guidance documents, and detailed reference pieces and pragmatic pieces for ESG
integration and engagement.
Topics covered climate risk in private real estate portfolios, fire arms control, identification of ESG risks
and opportunities, health and safety in the workplace, RI engagement, ethical funds ratings, heated
tobacco products and climate exposure in the ASX 300 among others.
Number of Research Topics nominated by Theme (2020)
5
4
3
2
1
0
Weapons Climate Change Human Rights Health and All ESG
Safety
4. Award Criteria
Three key criteria were considered by the Judging Committee in assessing research for the
2020 awards.
The criteria for assessing the award Best Piece of Investor Relevant ESG Research (non-broking firm)
included investor usability, rigour, innovation and originality.
• Investor usability – research should be written in a way is relevant and usable for Australasian
investors, whether to inform investor portfolios, asset allocation, an adviser to provide informed
advice or in a way that informs the engagement or other stewardship activities by investors.
• Rigour – the research should be rigorous and robust, based on a credible, transparent
methodology with clearly disclosed assumptions.
• Innovation and originality – the research should contain new information and insights and be
differentiated from other material available in the market place.
45. Research Assessment
Four ESG research reports were shortlisted for assessment.
After tallying the results from the 31 eligible votes cast by RIAA and ESG RA members, four research
pieces were short-listed for review by the Judging Committee. These are listed below.
Shortlisted Research
AUTHORIING ORGANISATION RESEARCH TITLE DATE PUBLISHED
Market Forces Out of Line, Out of Time Mar 2019
ACSI and RIAA Human Rights Working Group Modern Slavery Reporting - guide for investors, Nov 2019
Australian Centre for Corporate Responsibility Vote Like You Mean It May 2019
Ethical Adviser Co-Operative Ethical Fund Ratings Jun 2019
The Judging Committee commended each of the research providers for their contribution to ESG and
responsible investing in the region.
56. Award Winner
Modern Slavery Reporting – guide for investors
ACSI and RIAA Human Rights Working Group
Mans Carlsson-Sweeny, Ausbil Investment Management Limited
Kate Griffiths and Ian McIlwraith, ACSI
Synopsis
This guide has been prepared by ACSI and RIAA to provide a framework for investor reporting. It
provides broad context on matters investors may wish to consider in preparing their modern slavery
statements and should be used in conjunction with the guidance provided by the Australian Border
Force (Government Guidance). While both supply chains and investments are addressed in this guide, it
has been prepared primarily to provide additional information for investors on how they might address
their investment activity in their modern slavery statements. This guide offers suggested approaches,
and it is acknowledged that there could be other, equally appropriate ways to prepare modern slavery
statements.
The Act is focussed on transparency, aiming to inform external stakeholders what reporting entities do
to mitigate the risk of slavery and to encourage a ‘race to the top amongst businesses competing for
market funding and reputational reward’. Of course, investors will want to comply with the Act and they
will need to seek advice from an appropriately qualified professional in this respect. In addition to mere
compliance, this guide encourages investors to consider how they can develop their capacity to identify,
manage, address and remediate modern slavery risks and impacts. The exercise will be significant and
needs to be appropriately staged over time. Reducing the risk of modern slavery (or eradication of
modern slavery as per the UN Sustainable Development Goals) will be a lengthy and iterative process
where investors can play a role. Ultimately, it is up to each reporting entity to decide how it reports
(subject to addressing the mandatory criteria).
Assessment
The Judging Committee awarded this research the highest points of the four pieces of shortlisted
research. It achieved the highest average score from the judges across each of the three criteria of
usability, rigor and innovation and originality.
The report was also ranked the highest by the 31 RIAA and ESG RA members who voted.
Comments
The Guide was developed to assist investors following the introduction of the Modern Slavery Act in
Australia - as this was new to everyone the Guide provides an overview of our obligations; how we can
meet those obligations and recommended actions - this is exactly what investors needed given the
complexity and nuances of modern slavery. It is logical and provides practical information for investors
to use.
Has become the "go to' guide for investors seeking to comply with their obligations under the Modern
Slavery Act
6Very comprehensive in addressing all aspects of investor obligations under the Act. Being framed as a
"Guide for investors", it offers useful examples without being prescriptive
This is a practical guide for all investors to be able to use when considering compliance with the newly
introduced Modern Slavery Act in Australia. It is original and provides background information as well as
practical steps investors can take - it is like a bible for Modern Slavery. It has been developed for industry
by industry to solve an issue that we are all grappling with.
7. Nominated Research
For nominations to be considered for the Award, the research must meet the following criteria:
1. Be investor relevant ESG research at a company, industry or thematic level
2. Have been published since 1 October 2018
3. Be publicly available, or as a minimum, a subset of the research has been made available publicly
(e.g. an article has been published publicly containing key results of the research)
4. Be nominated for the Award either by the authoring organisation or by a RIAA or ESG RA
member, and not be brokerage firm
5. Be primarily focused on the Australasian market, such as referring to Australasian listed
companies or Australasian based assets.
Two nominations were deemed ineligible due to being brokerage research (criteria 4), and another for
only being an article with the content being majority of the information not being publicly available
(criteria 3).
Full list of eligible nominations
AUTHORIING ORGANISATION RESEARCH TITLE DATE
PUBLISHED
Market Forces Out of Line, Out of Time Mar 2019
ISS caer Firearms Involvement and Gun Control in New Zealand Apr 2019
Australian Centre for Corporate Vote Like You Mean It May 2019
Responsibility
Ethical Adviser Co-Operative Ethical Fund Ratings Jun 2019
ISS caer Heated Tobacco Products: A Healthier Alternative or an Industry Smoke Aug 2019
Screen?
Kiwi Invest Taking responsibility Further: RI Engagement, the Kiwi way Sep 2019
MSCI Climate risk in private real estate portfolios: What’s the exposure? Oct 2019
Sustainalytics Navigating ESG Issues in Australia: Identifying Risks, Seizing Oct 2019
Opportunities
ACSI and RIAA Human Rights Modern Slavery Reporting - guide for investors Nov 2019
Working Group
ACSI The Future of Health and Safety Reporting: a framework for companies Dec 2019
ISS caer Responsible Investment Agenda 2020 Feb 2020
8. Verification, assessment & judging processes
7RIAA involvement
RIAA provided the secretarial services for the Award, particularly undertaking the following activities:
• Verifying nominations against eligibility criteria
• Counting final votes by RIAA and ESG RA members (including vetting eligibility of voters)
• Compiling the Judging Committee pack
• Facilitating Judging Committee
• Promoting the finalists and winners of the award
Member voting & RIAA tallying
Between February 18 and 28, RIAA and ESG RA members were invited to vote for the research award.
RIAA received 31 eligible votes, indicating members’ first, second and third choice.
Judging Committee
The Judging Committee comprises:
• Liza McDonald, First State Super
(Host of the RIAA Member Human Rights Working Group, Lead on Workforce Disclosure
Initiative work-stream, ESG Research Australia Committee Member, RIAA Member)
• Lou Caparella, UniSuper
(RIAA member)
• James Tayler, Morphic Asset Management and Ellerston Capital
(RIAA member)
Judging process
1. The shortlist for judging is built on the back of the outcomes of the member voting process.
2. Judging Committee members receive their judging pack (listing the eligible entries) including the
Judges’ Evaluation Spreadsheet.
3. The short-listed research pieces are reviewed and scored by each Judge using the Judge’s
Evaluation Spreadsheet.
4. Judges have the right to elevate to the shortlist (for due consideration during the judging
meeting) any pieces they deem worthy of consideration but did not make the RIAA / ESG RA
member voted short-list.
5. The Judging Committee deliberates on the results of the combined scoring and, guided by the
criteria and scoring matrix, decides on a winner, and highly commended if relevant.
8At end of the voting period it was noted that RIAA was involved in the production of the Modern Slavery
Reporting research piece. As such RIAA staff including the CEO and Executive Manager were recused
from the Judging Committee.
No other conflicts of interest were noted by the judging committee.
99. About RIAA
The Responsible Investment Association Australasia (RIAA) is the peak industry body representing
responsible, ethical and impact investors across Australia and New Zealand.
RIAA has an active network of over 300 members who manage more than $9 trillion in assets globally,
including super funds, fund managers, consultants, researchers, brokers, impact investors, property
managers, community banks, community trusts, faith-based groups, financial advisers and individuals.
RIAA’s goal is to see more capital being invested more responsibly; shifting more capital into sustainable
assets and enterprises and shaping responsible financial markets to underpin strong investment returns
and deliver a healthier economy, society and environment.
RIAA does this through:
• Acting as the member hub of timely and relevant ESG, ethical and impact investing information
to strengthen the capacity of the finance and investment industries – through regular events,
webinars, conference calls and working groups, as well as industry research; and
• Growing the awareness and demand for responsible investments through communications and
marketing work, media activity, as well as by operating the world’s first and longest running fund
Certification Program, and the consumer online tool Responsible Returns.
Contact details
RIAA email: info@responsibleinvestment.org
Website: www.responsibleinvestment.org
Disclaimer
This information is issued by the Responsible Investment Association Australasia, a membership organisation and does not
necessarily reflect the views of those organisations. This information is intended as information only and should not be used
in the place of legal or other advice. Such information is not intended to, and does not constitute, financial advice of any
kind.
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