Successful long term investing is sustainable investing. We are proud of our history of patient and disciplined investing – trust and reputation are at the heart of our brand. Since listing in 1903, we have invested in a diverse portfolio of assets across a range of industries. Ultimately, we are investing in people and communities.
We believe sustainable investing is a cornerstone of long term success. Sustainable investing takes into account Environment, Social and Governance (ESG) risks and opportunities in assessing the long term viability of the companies and industries in which we invest. We invest in companies with high quality operations and where we see potential for long term shareholder wealth creation and cash generation. Each year we report our ESG actions in the Sustainability section of our Annual Report and in our Modern Slavery Statement.
Our approach to assessing ESG risks and opportunities is embedded in the implementation of WHSP’s strategy and guided by three core beliefs:
- Attention to ESG performance can improve the quality and consistency of long term value creation.
- As an active owner, we are well positioned to provide counsel and independent challenge to our investees in relation to their approaches for managing ESG risks, and taking advantage of ESG opportunities, therefore enhancing returns.
- Our actions and decisions can affect practices in the entities in which we invest. We have both a duty and an interest in managing this influence to maximise long term value for our investee companies and our investors.
By evaluating the ESG risk profile of our existing and prospective investments, we are able to take a balanced view on how these affect our investment decision. As such, we do not exclude investments that are exposed to ESG risk and may take advantage of opportunities that arise in response to ESG risks.
Pre-investment ESG Due Diligence
We consider the impact of and evaluate ESG risks and opportunities associated with potential investee companies in line with our risk management framework including consideration of the factors in Appendix A of our Sustainable Investment Policy.
Monitoring our ESG risks and opportunities
We review the performance of investee companies and asses the long term prospects of each industry in our investment portfolio to identify opportunities and potential risks. The level of ESG risk in the investment portfolio is constrained by limits within the Board approved Risk Appetite Statement consistent with our aim of achieving positive investment outcomes over the long term.
We are committed to evolving our approach to integrating ESG within our investment lifecycle. As we continue to make new investments and the value of existing investments change, our ESG risks and opportunities also vary.
We are committed to managing our footprint. We monitor climate change impacts (risks and opportunities) of our investment portfolio and engage with investee companies to support the many competing needs of society.
Our Sustainability Report in our Annual Report sets out our climate change commitments, governance, strategy, risk management and how we measure climate risk. We are committed to continuing to develop our approach to managing the impact of climate change.
Our Climate change policy outlines our policy in relation to climate change.
Lewy Pattinson, one of our founders, donated the first plane to the Royal Flying Doctor Service. Since this time, WHSP has had a long association through its founders and more recently through a corporate partnership.
The Milton Foundation was established in 1988 to support charitable organisations, particularly those that provide direct assistance to disadvantaged groups in our community. Since its establishment the Foundation has provided over $2.6 million of assistance.
- Alignment of our investment strategy and management remuneration with delivering shareholder returns.
- Prudent management of risk within Board approved limits to generate reliable cash through market cycles providing a long history of performance when markets are down.
WHSP’s Corporate Governance Statement sets out the company’s corporate governance practices.