Environmental, Social and Governance (ESG)

We believe that responsible management contributes to the achievement of Sustainable Competitive Advantage.  ESG considerations are embedded into our investment process and enables us to assess risks and opportunities that are not yet reflected in asset values.  Further, we demonstrate our ESG beliefs through active engagement with both board & management of investee companies.  We believe that successful engagement can, not only, reduce risks to asset owners but also create value.  Through engagement, our aim is to encourage companies to improve the way they manage their own ESG risks.

As part of this commitment to incorporating ESG more fully WaveStone Capital is a signatory to the Principles for Responsible Investment (PRI).

The PRI is the overarching framework of our ESG philosophy and as such, we commit to the following:

  • We will incorporate ESG issues into our investment analysis and decision-making processes.
  • We will be active owners and incorporate ESG issues into our ownership policies and practices. We will seek appropriate disclosure on ESG issues from entitles in which we invest.
  • We will promote acceptance and implementation of the PRI within the investment industry.
  • We will work to enhance our effectiveness in implementing the PRI.
  • We will report on our activities and progress towards implementing the PRI.

WaveStone is also a member of the Climate Action 100+ initiative, an investor-led  collaborative engagement group focused on  engaging with systemically important greenhouse gas emitters and other companies across the global economy to improve governance on climate change, curb emissions and strengthen climate-related financial disclosures.

One of Australia’s leading investment managers for ESG integration

In their Responsible Investment Benchmark Report for 2019, the Responsible Investment Association Australasia (RIAA) identified WaveStone as one of 34 investment managers (from an initial review of 120) applying a leading approach to ESG integration in their responsible investment approach. According to the report, these managers “clearly demonstrate leading practices of ESG integration in their investment process via their policies, their clearly defined approaches to stewardship, their active ownership (including corporate engagement and voting) and their meaningful disclosures”. Read the report here.

Supporting the quest to achieve gender balance in executive leadership across ASX200 companies by 2030

In October 2020, WaveStone signed up industry super fund HESTA’s 40:40 Vision to increase the proportion of women in senior leadership across Australia’s largest listed companies to at least 40% by 2030. As a signatory, we commit to: actively engaging with companies on the gender diversity of their executive team; encouraging companies to sign on to the Vision to demonstrate their commitment; raising questions where there is evidence that companies are lagging behind targets and consider voting against the re-election Board or Committee members if companies are failing to demonstrate action on gender diversity aligned with long-term shareholder value. Find out more here.