11/20151
ENVIRONMENTAL SUSTAINABILITY STAKEHOLDER/REFERENCE COMMITTEE
MINUTES OF MEETING 3/2015
Meeting 3/2015 of the Environmental Sustainability Stakeholder/Reference Committee was held at 10.00 am
on 25 August in Room G21, 15 Innovation Walk at the Clayton campus of Monash University
1.
PROCEDURAL MATTERS
1.1
APOLOGIES
Belinda Allison
Gujji Muthuswamy
1.2
1
Documents &
Action
Jemma Southgate
PRESENT
Those present were:
Paul Barton (Chair)
Nav Brah
Zachary Dorner
Tony Hudson
Meg Ralph(Secretary)
Damon Rapke
Nikki Silbert
Brett Walters
1.3 WELCOME
Paul Barton (Chair) welcomed new members and introduced them.
1.4 CONFIRMATION OF MINUTES
The minutes of meeting 2/2015 of the Environmental Sustainability Stakeholder/Reference
Committee meeting held on 12 May were confirmed.
8_2015_150727_ESS
RCMinutes 2_2015.pdf
8/2015
Confirmed minutes to
be posted at the
Environmental
Sustainability web site
2.
ENGAGING COMMUNITIES
2.1 ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) FACTORS IN INVESTMENT
The Chair introduced a discussion on the inclusion of ESG factors in investment portfolio
selection and management. The Chair explained that this issue was currently being addressed
by Monash, with a small working group of Council, chaired by Simon Crean, set up to draft a
statement for the University Council and the Vice Chancellor to consider. The Chair added that
this was a complex area dependent on the types of investments that organisations held and
how the investment funds are managed.
9-2015_USydneyInv
estmentPolicy2015.pdf
9/2015
The Chair invited Nav Brah, Engineering & Sustainability Manager from the University of
Sydney, to speak on the implementation of the University's integrated ESG framework in its
Investment Policy.
Nav explained that the process of developing the University of Sydney's ESG investment
strategy commenced about 3 years ago, arising from the key governance considerations of
management and prudence to manage the investment risk in certain industries, rather than a
grass roots movement from the university community.
Nav noted that the University of Sydney investments are indirectly invested with external fund
managers and explained the management structure.
2.1.1 Management of investment

The Investment & Commercialisation Committee reports directly to Senate, providing
governance and oversight of investment.

The Investment Capital Management Team (6) reports to this committee, managing the
investment processes for the University and making the external investment decisions.
151006_ESSRCMinutes 3_2015.doc
AUTHOR: Business Support, Facilities and Services
Date: 27/07/2015
2

The Mercer Responsible Investment team provides strategic investment advice to this
team based on both capital return and ESG rating. Mercer has a 4 level ESG rating
system for institutional funds and fund managers that they use in the advice they
provide to the University of Sydney.
2.1.2 ESG Framework
The University of Sydney did not take the approach to divest from specific companies or
specific industries as they preferred an integrated approach to influence fund managers and
because that approach had resulted in adverse publicity for another university.

Under the ESG framework, the Mercer Responsible Investment team has been
appointed as advisers as they have a breadth of experience across a range of funds.

Fund manager selection & monitoring incorporates Mercer ESG ratings.

A proxy voting specialist has been engaged to undertake advocacy acting on behalf of
the University supporting ESG principles at share-holder meetings.

Annual reporting on ESG matters is required at least annually.

The University is aiming to improve its ESG rating of its investment portfolio with time.
The University of Sydney also has negative filters excluding investments directly involved in
the manufacture of tobacco products and cluster munitions.
2
2.1.3 Discussion of the University of Sydney's ESG Framework
Paul Barton commented that the direct management used by the University of Sydney can
result in additional cost. Nav replied that the fees were negotiated actively and that the funds
were performing well and that the fees had not been questioned. He added that consideration
of ESG factors would also lower the risk profile of the University's investments.
To a question from Brett Walters regarding the scrutiny of Mercer’s ESG rating system, Nav
replied that the rating systems were assessed by the Investment Capital Management Team
compared with other systems and funds, was independent, and that Mercer was a leader in
the field. Their independence and the rating system also provide credibility to the University's
position.
To a question from the Chair, Nav commented that the reception from the student body to the
ESG Framework and commitment to reduce the carbon footprint by 20% relative to the
footprint of its current listed equity composite benchmark had been positive.
Tony Hudson observed that he had no specific information regarding CSIRO's investments.
Paul Barton added that Monash University and CSIRO are in the unique position to undertake
research on the rigour and quality of ESG rating systems and standards. Monash was
presently identifying ratings and standards, but research had not as yet commenced.
To a query raised by Paul Barton about whether the investment markets would naturally divest
from fossil fuels as ESG-sensitive funds are out-performing those with fossil fuels, Brett
Walters commented that the pace of natural attrition was too slow and responsible investors
should drive the process.
To questions from Zachary Dorner about the reduction in the carbon footprint of the investment
portfolio, Nav replied that only the direct emissions of the companies in the investment portfolio
were measured (Scope 1 and 2; no Scope 3), not the emissions from the sale of coal. He also
explained that the amount of the carbon footprint reduction wasn't in the Investment Policy as it
would change progressively and that progress in the reduction in the carbon footprint would be
reported annually to the Senate.
Nikki Silbert clarified that the Fossil-Free group was requesting that the top 200 fossil fuel
companies by size of reserves be excluded from investment, rather than investors having to
look into the details of companies activities.
3.
MONITORING AND REVIEW
3.1 ENVIRONMENTAL PERFORMANCE INDICATORS
The Chair provided a summary of the draft environmental performance indicators for the first
half of 2015.
The Chair reported that carbon emissions have trended down when compared to the same
period in 2014, decreasing by 0.2% with the Gippsland and Monash Medical Centre campuses
moving to other organisations. The University is aiming to keep energy consumption flat, even
151006_ESSRCMinutes 3_2015.doc
AUTHOR: Business Support, Facilities and Services
10-2015_150818_En
v KPIs Q2 2015_Pg1-4.pdf
10/2015
Date: 27/07/2015
3
though the University is growing. This can be seen in the increasing gap between annual
energy consumption and that calculated for business as usual in previous years.
Total potable water consumed has increased by 5% during the first half of 2015, in comparison
with the same period of 2014. Brett Walters informed members that a storm water harvesting
and distribution system that will produce 163 ML harvested water and distribution would assist
to decrease Clayton campus water consumption in the future. Approximately 30% of total
waste was recycled in the first half of 2015 with small annual decreases in total waste. The
energy cost analysis shows cost saving of $1.6m last year due to energy efficiencies and
generation.
The detailed analysis of energy consumption for the first 6 months of the year shows electricity
has decreased by 2% with gas increasing, resulting in a decrease on carbon emissions due to
the lower impact of gas versus brown coal generation.
The Chair reported that we were now reporting the cogeneration plant output. Nav Brah asked
if the plant was co - or tri - generation, to which the Chair replied that it was cogeneration, the
performance of which was continuing to be optimised.
4.
LEGISLATIVE IMPACTS
The
3 Chair noted a range of legislative impacts, which included:
4.1 RENEWABLE ENERGY TARGET
Legislation to reduce the Renewable Energy Target had passed Federal Parliament in June,
reducing the target from 41,000 to 33,000 GWh to reflect lower overall energy demand. Trade
exposed industries have been made exempt from the target and two-yearly reviews have been
replaced by an annual statement by the Clean Energy Regulator.
4.2 AUSTRALIA'S NATIONAL INVENTORY REPORT 2013
The Department of Environment released Australia’s National Greenhouse Accounts
representing national, state and territory as well as industry emissions estimates for 19902013.
Tony Hudson commented that the focus of the current government appeared to have moved
from environmental legislation as CSIRO's reporting requirements have decreased from
government agencies.
5.
NEXT MEETING
The last meeting of the committee for 2015 is scheduled for 10 - 11.30 am on Tuesday, 20
October. Members were invited to provide suggestions for topics of interest to be discussed at
the last meeting of the year.
The meeting will be held in Room G21, 15 Innovation Walk, at the Clayton campus of Monash
University and video conferenced to a number of participants.
151006_ESSRCMinutes 3_2015.doc
AUTHOR: Business Support, Facilities and Services
Date: 27/07/2015
4
Distribution List:
Paul Barton (Chair)
Belinda Allison
Director, Business Support, Facilities and Services, Monash University
Education for Sustainability Program Manager, Monash Sustainability Institute, Monash University
Nav Brah
Zachary Dorner
Dr Tony Hudson
Engineering & Sustainability Manager, Campus Infrastructure & Services,The University of Sydney
Postgraduate student representative, Monash University
Environmental Sustainability Manager, CSIRO
Jun Li
Joanne Ly
Gujji Muthuswamy
Acting Building Performance Analyst, Planning, Facilities and Services, Monash University
Engineering Support Officer, Facilities and Services, Monash University
Industry Fellow, Faculty of Business and Economics, Monash University
Meg Ralph (Secretary)
Damon Rapke
Nikki Silbert
Project Manager, Business Support, Facilities and Services, Monash University
Category Manager, Travel and Fleet, Strategic Procurement, Monash University
Environment and Social Justice Collective representative, Monash Student Association
Jemma Southgate
Brett Walters
Environmental Manager, Westpac Banking Corporation
Manager, Engineering and Sustainability, Planning, Facilities and Services, Monash University
4
151006_ESSRCMinutes 3_2015.doc
AUTHOR: Business Support, Facilities and Services
Date: 27/07/2015