Framework

Our guiding principle is that priority will generally be given to ESG investments if the long-term risk-adjusted return is comparable to other investments.

Underpinned by the guiding principle, we continuously step up RI momentum and risk management efforts with an aim to bolster portfolio resilience and enhance long-term risk-adjusted returns for the Exchange Fund.

Our Three-pronged Approach

Integration

We incorporate ESG factors into our investment analysis, and seek to grow our sustainable investments that embrace climate transition, mitigate ESG risks and enhance portfolio returns. We select and appoint external managers that share our RI beliefs and align in such a way that the overall sustainable long-term economic performance is attainable.

Our implementation

Active Ownership

We exercise shareholder rights in our public equity holdings in a manner that helps safeguard the long-term value of our investments, as we believe that responsible corporate behaviour guided by ESG factors will help create shareholder value in the long term. We expect our asset managers to help us discharge active ownership responsibilities in the underlying investments through exercising voting rights and engaging with the corporates concerned.

Our implementation

Collaboration

We proactively collaborate with like-minded investors, regulators and international organisations to promote good practices for managing investments for the long term.

Our implementation

Last revision date : 13 June 2023