WWF’s mission is to stop the degradation of the planet’s natural environment and to build a future in which humans live in harmony with nature. Responsible and sustainable investment is therefore a logical extension of our mission and we are pleased to be the first NGO certified by the Responsible Investment Association Australasia.
CERTIFICATION DETAILS
Certified by RIAA since: March 2008
Certified products in which investments are made?
WWF Australia invests in the following Certified products:
In addition, we also invest in listed securities, which are under the direct management of Trevor Thomas, a Certified Financial Adviser from Ethinvest.
Certified methodology applies to which asset classes?
The responsible investment methodology used by WWF applies to the following asset classes:
- Cash
- Fixed interest
- Australian shares
- International shares
- Property
Percentage of your investments is covered by your responsible investment policy?
100%
Methodology used to select stocks in the portfolio
The Ethinvest Sustainable Rating System aims to produce a portfolio of companies that contribute to the protection and improvement of our environment and a better and more sustainable society. It classifies companies into three categories Green, White or Black.
The portfolio must have zero Black rated stock, 50% to 100% Green and 0% to 50% White.
GREEN
Companies that do good. Green rated companies are involved in activities that benefit human society or the natural environment. These activities may include:
- renewable energy,
- recycling,
- sustainable land and water use,
- environmental remediation,
- greenhouse gas reduction,
- education,
- safe workplaces,
- positive work cultures,
- improving the quality of human life,
- healthcare
WHITE
Companies that do no harm. White rated companies are not directly involved in activities that:
- negatively impact the environment,
- damage non-plantation native forest,
- profit from alcohol, tobacco or gambling,
- are illegal,negatively impact people or animals,
- are involved in the mining or use of uranium, or
- are involved in the production or sale of armaments.
BLACK
Companies that damage people or the environment. Black rated companies are directly involved in activities that:
- negatively impact the environment,
- damage non-plantation native forest,
- profit from alcohol, tobacco or gambling,
- are illegal,
- negatively impact people or animals,
- are involved in the mining or use of uranium, or
- are involved in the production or sale of armaments.
Direct involvement is defined as specific operations in excluded areas, e.g. a supermarket operator that owns facilities that operate poker machines; or a mining engineering company providing services to a uranium mine. Direct involvement includes the operations of subsidiary companies but does not extend to the activities of related management entities, e.g. a listed renewable energy trust would not be excluded if it were managed by another company that also managed coal fired power stations. Indirect association with excluded activities (in itself) does not result in a black rating (e.g. the provision of electricity or phone services to a uranium mine or old-growth logging company). Subjectivity. By their very nature, ethical ratings require subjective judgments. Where there are differing opinions as to a companies rating, Ethinvests Screening Committee resolves the issue on its assessment of whether the environment and/or society are better off because of the existence of the company in question. Environmental, labour rights, social standards or ethical issues are fully taken into account in this process.
How often do you monitor adherence to the methodology?
Ethinvest monitor investments on a daily basis, with a formal Investment Committee meeting each month and formally reports to WWF on a quarterly basis, with interim updates for any matters of significance, either ethical or financial.
Procedures for monitoring adherence to the methodology
Ethinvest reviews the investments on a day-to-day basis. The ratings process is similarly dynamic, with a formal monthly meeting to review all ratings. WWF reviews Ethinvests reports on a quarterly basis. In addition, Ethinvest conducts monthly screening meetings based on analysis of all information that the company has made available to the ASX. This process involves scrutiny of independent research and relevant material on the public record.
If a stock no longer meets your methodology or criteria, what is the timeframe for divestment?
In the event of a change in rating, Ethinvest will advise the CFO of WWF and the holding will be disposed of in a timely manner in accordance with the delegated authority structure for portfolio decisions.
Do you have any materiality thresholds for negative screens?
No materiality thresholds are employed any direct exposure to excluded activities results in exclusion from the portfolio.
CONTACT DETAILS
| Paul Molloy |
| Chief Financial Officer |
| WWF-Australia |
| Level 13, 235 Jones Street, Ultimo, NSW 2007 |
| Phone: 02 8202 1255 |
| Email: pmolloy@wwf.org.au |
| Website: www.wwf.org.au |
