(May 27, 2014) — The Australian sovereign wealth fund has appointed a new head of environmental, social, and governance (ESG) risk management.
The $96.5 billion Future Fund announced it has hired Joel Posters to lead its ESG program. Posters is set to join the fund in August.
“Integrating ESG risk management into our investment decision-making is an important part of our program,” David Neal, CIO of the Future Fund, said in a statement.
According to the Melbourne-based fund, Posters will be working with the investment team to manage ESG risk and “continuing to oversee the exercise of our ownership rights and engagement with investee entities in conjunction with our external investment managers.”
Most recently, Posters served as global head of sustainability with financial service provider De Lage Landen, which is part of the Rabobank Group in the Netherlands. He has held similar roles at ABN AMRO Bank, PricewaterhouseCoopers, and consulting firm AT Kearney across Europe, Asia, and Australia. He will relocate from the Netherlands to Melbourne.
“The board believes that the effective management of material financial and reputational risks and opportunities related to ESG issues will, over the long term, support its requirement to maximize returns earned on the funds,” the fund said. The sovereign wealth vehicle operates with an ownership rights and ESG risk management policy.
Under this policy, the fund vows to engage with investee entities and collaborate with other investors to support “stable, transparent, and efficient financial markets.”
The fund has excluded various corporations such as Lockheed Martin, Singapore Technologies Engineering, and General Dynamics, and 15 companies for their direct involvement in the manufacture of tobacco products.
Related Content: CalPERS Hedge Fund Chief to Join Future Fund & Is it Time to Drop the ‘ES’ from ESG?