Sustainability

The incorporation of ESG issues into Solaris’ investment decision making process is an integral part of our business. Solaris believes that the consideration of ESG factors can help to protect and enhance our clients’ investments over the longer term. As stewards of our clients’ capital, Solaris exercises ownership rights and responsibilities including monitoring company performance, engaging with companies and voting proxies. As part of our stewardship activities, the consideration of ESG factors has a prominent role. The ESG field is a broad and ever-evolving space that continues to challenge the companies in which we invest and our assessment of those companies. Solaris aims to ensure that we are at the forefront of material ESG factor assessment to ensure long-term capital enhancement and protection of our clients’ portfolios. Solaris considers the sustainability outcomes of the companies we invest in and their ability to transition through changing market conditions and societal norms.

ESG factors are considered at two stages within the Solaris Investment process – the initial risk screening stage and as one of the six Qualitative factors used to value companies. Solaris aims to integrate material ESG factors into the valuation of each company included in, or considered for inclusion in, the portfolios we manage. Each company is assessed on a case by case basis with premiums/discounts for factors identified applied through the analyst’s valuation process.

Solaris Sustainable Investment Policy

Proxy Voting

Solaris’ Voting approach is based on fiduciary responsibilities to act in the best interests of clients as shareholders. It is the policy of Solaris to vote on all resolutions.

Featured below is a record of proxy voting undertaken by Solaris Investment Management for the Quarter ending 31 December 2023.

Resolutions For Against Abstain Not put to Meeting
Number 286 263 17 4 2
Percentage 91.96% 5.94% 1.40% 0.70%
Where votes are lodged on behalf of numerous clients, a resolution is only counted once.

Our 2023 Calendar Year Voting Records are available here.

2023 Calendar Year Solaris Proxy Voting Record

ESG Initiatives

PRI Signatory

The six Principles for Responsible Investment are a voluntary and aspirational set of investment principles that offer a menu of possible actions for incorporating ESG issues into investment practice.

Solaris became a signatory to the PRI in 2009 and by doing so committed to the following six principles:

Principle 1: We will incorporate ESG issues into investment analysis and decision-making processes.
Principle 2: We will be active owners and incorporate ESG issues into our ownership policies and practices.
Principle 3: We will seek appropriate disclosure on ESG issues by the entities in which we invest.
Principle 4: We will promote acceptance and implementation of the Principles within the investment industry.
Principle 5: We will work together to enhance our effectiveness in implementing the Principles.
Principle 6: We will each report on our activities and progress towards implementing the Principles.

PRI Transparency Report

In signing the Principles, Solaris publicly committed to adopting and implementing them, where consistent with our fiduciary responsibilities. We also committed to evaluate the effectiveness and improve the content of the Principles over time. We believe this will improve our ability to meet commitments to beneficiaries as well as better align our investment activities with the broader interests of society. Solaris encourage other investors to adopt the Principles.

Taskforce on Climate Related Financial Disclosure (TCFD)

In July 2019, Solaris signed the Statement of Support for the Task Force on Climate-related Financial Disclosures (TCFD) recommendations. The Financial Stability Board (FSB) created the TCFD to improve and increase reporting of climate-related financial information.  Concurrent with the release of its 2023 status report on October 12, 2023, the TCFD fulfilled its remit and was disbanded. The FSB asked the IFRS Foundation to take over the monitoring of the progress of companies’ climate-related disclosures.  Solaris’ last TCFD (as at 30 June 2023) is the last report available under the TCFD framework.  Solaris is awaiting clarification of reporting requirements moving forward.  The Australian Accounting Standards Board (AASB) is expected to release the Australian equivalents of IFRS S1 and S2 prior to March 2024.

TCFD 2023 Report

Responsible Investment Association of Australia

Solaris became a member of the Responsible Investment Association of Australia in 2010 and continues to participate in various Responsible Investor Initiatives relevant to our investing activities.

Read more about RIAA

Carbon Data

CARBON INTENSITY (31 December 2023) CARBON INTENSITY (SCOPE 1 TONNES CO2-e / REVENUE AUD mn) CARBON INTENSITY (SCOPE 2 TONNES CO2-e / REVENUE AUD mn) CARBON INTENSITY (SCOPE 3 TONNES CO2-e / REVENUE AUD mn)
Solaris Core Fund 75.81 30.54 1024.57
S&P/ASX200 93.18 38.24 1189.06
% Diff -18.64% -20.13% -13.83%
CARBON EMISSIONS (31 December 2023) CARBON (SCOPE 1 TONNES CO2-e) CARBON (SCOPE 2 TONNES CO2-e) CARBON (SCOPE 3 TONNES CO2-e)
Solaris Core Fund 55,157 23,085 688,036
S&P/ASX200 (Total) 152,113,960 49,675,749 1,836,938,602
S&P/ASX200 (FUM Scaled) 66,105 21,588 798,291
% Diff -16.56% 6.94% -16.32%

Montreal Carbon Pledge Signatory

Solaris signed the Montreal Carbon Pledge in 2015, committing to measuring and publicly disclosing the carbon footprint of our investment portfolios.  The Pledge was launched in 2014 at PRI in Person in Montréal, and was supported by the Principles for Responsible Investment (PRI) and the United Nations Environment Programme Finance Initiative (UNEP FI). The Montreal Carbon Pledge is now closed, following the successful achievement of its main objectives.  Solaris intends to continue to publicly disclose the Carbon Data for the Solaris Core Fund (above).

Data provided by ISS.

Whistleblower Policy

Solaris is committed to promoting a culture of corporate compliance and ethical behaviour. We aim to create an environment in which employees who have genuine suspicions about improper conduct feel safe to report it without fear or reprisal.

Whistleblower Policy