The former chair of AMP has joined the board of an ESG start-up targeting major institutional investors wanting to understand more about carbon risk in their portfolios.
Ex-AMP chair Catherine Brenner – who stepped down from the wealth giant in 2018 following royal commission findings that the group had had internal input into an independent compliance report – is among a number of financial services executives to have joined the board of environmental risk management platform Emmi.
The platform bills itself as “a new investment-grade carbon risk management system” that helps major super funds and asset managers better understand and evaluate the climate-related financial risks in their portfolios.
Hyperion Asset Management chair Tim Samway and Patrick Sieb of start-up incubator Startmate will join Ms Brenner on the board of Emmi, with major super funds Aware Super and Energy Super already among its clients.
“Shareholders are increasingly realising carbon emissions carry added financial risk and want to support businesses that are making a measurable commitment to carbon emission reductions,” Emmi founder and chief executive Michael Lebbon said.
“At the same time, regulators are placing closer scrutiny on businesses’ efforts in this respect. However, before now, there was no credible or independent way to easily reconcile these concerns with an accurate assessment of businesses’ exposure or strategies. This left a big gaping hole in the analytical toolkit.
“As a purpose and impact driven organisation, we designed Emmi as a completely independent, open, transparent and affordable system that anyone can utilise to help make our world a more sustainable place, while improving their long term returns.
“Emmi will bring carbon into mainstream financial analysis, setting a universal benchmark that makes it easier for investors to understand their exposure and reward those businesses who are taking truly meaningful action.”
Aware Super head of responsible investments Liza Mcdonald said the tool formed a useful part of the fund’s overall strategy to transform the long-term sustainability of its member portfolios.
“At Aware Super we view climate change as the most significant financial risk to our portfolio and to our members’ long-term financial future. We have been responding to these risks in an active and coordinated way since 2015 and have set ambitious targets and goals for how we will achieve net zero by 2050,” Ms Mcdonald said.
“Having a tool like Emmi gives us valuable insights into our carbon exposure and climate risks to ensure our investments are sustainable and continue to deliver for our members in not just years to come, but decades to come.”
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