IFM’s ESG initiatives a success in 2022

Yasmine Raso

Senior Journalist, Financial Newswire

24 November 2022

IFM Investors’ recently released Responsible Business Report 2022 has highlighted the success of several environmental, social and governance (ESG) initiatives that were implemented business-wide in the last 12 months.

The report showed the investment manager developed a 10 gigawatt (GW) “pipeline” of renewable energy projects and initiatives and recorded over 700 megawatts in renewable capacity across the firm’s infrastructure portfolios as of 30 June.

The firm also launched new investment options integrated with sustainability goals, including a Net Zero Infrastructure portfolio and Australian Equities Climate Transition strategy, and partnered with the Commonwealth Bank of Australia to launch ESG term deposits.

IFM also commenced a large-scale renewable energy purchasing program to provide over 400 GW to Australian infrastructure assets by 2025 and confirmed its 2030 interim emissions (scope 1 and 2) reduction goal of 45 per cent for its Private Equity portfolio.

IFM also took steps to increase female representation on the boards of its infrastructure companies to improve gender diversity business- and industry-wide, growing from 18 per cent in 2017 to 38 per cent in 2021.

This also contributes to the firm’s wider and longer-term gender diversity target by 2026, with 45 per cent of any gender across its workforce (currently at 44 per cent) and 45 per cent of any gender at levels of director and above (currently at 38 per cent).

“Through our responsible and sustainable investment approach, we are seeking to maximise long-term returns for our investors and the millions of every-day people they represent, and position our investments for stronger value creation,” IFM Investors chief executive, David Neal, said.

“Healthy long-term investment returns are dependent on healthy environmental and social systems, now and in the future. You can’t stock pick your way out of systemic risks like climate change. And we know that inclusive cultures and diverse workplaces build better and more resilient businesses.”

“IFM’s performance over the last financial year is a testament to the hard work of our team and their continued focus on delivering for our investors and their beneficiaries, which include nurses, teachers, and construction and hospitality workers.”

The report also showed IFM recorded AUD$1.86 billion deployed in infrastructure debt deals, a 15.6 per cent increase in funds under management to AUD$199 billion and a 12.8 per cent rise to reach 626 global institutional investors.