An independent review into the State’s investment funds has been launched to ensure they meet the principles of Environmental, Social and Governance (ESG) management.
Announced by Treasurer, Matt Kean, the Review is to be led by investment advisor, Pru Bennett.
“It’s up to us to make sure public money is invested in a way that leaves our planet and society in better shape than when we found it,” Mr Kean said.
“But this is also about protecting taxpayers, because over the long term, social and environmental risks become financial risks that will hit the bottom line,” he said.
“The NSW Government, under TCorp, has about $112 billion invested in NSW Government managed funds.”
Tcorp is the financial markets partner of the NSW public sector.
Mr Kean said all Government funds were subject to TCorp’s Investment Stewardship Policy, which integrated ESG principles into investment decision-making across portfolios.
Ms Bennett said putting ESG issues front and centre was increasingly important for both the private and public sectors to deliver a healthier economy, society and environment while also delivering against financial performance expectations.
“Investments in companies and organisations that themselves have incorporated ESG risks and opportunities as part of their overall strategy are seen as better positioned for the long term,” Ms Bennett said.
Mr Kean said the Review was expected to be completed this year.
