Sustainability
Our approach to identifying and managing environmental and social risks is embedded across our risk management framework, including our ‘three lines of defence’1. Under Macquarie’s Code of Conduct, all staff share responsibility for identifying and managing environmental and social risks as part of normal business practice. Environmental and social risks that arise through our investments, financing activities, client and supplier relationships, are managed through the implementation of our group-wide Environment and Social Risk (ESR) Policy and Work Health and Safety (WHS) Policy.
Macquarie’s ESR Policy describes our approach to ESR management when onboarding or reviewing clients and other counterparties across a broad range of transactions including equity investments, financing, leasing and advisory mandates.
The ESR Policy provides a process to identify, assess, manage, mitigate, monitor, report, and where relevant, remedy environmental and social risks. It takes a precautionary approach to ESR issues including labour and employment practices, climate change, human rights, resource efficiency, pollution prevention, biodiversity and cultural heritage. Informed by international guidelines, including the International Finance Corporation Performance Standards, the ESR Policy provides escalated decision-making and approval processes, alongside the credit and broader RMG approval processes.
For more information regarding Macquarie’s approach on human rights, including identifying and mitigating the risk of modern slavery see our Human Rights at Macquarie page
Macquarie acknowledges that Work Health and Safety (WHS) risks are inherent in our investments and recognises, supports, and promotes the right of every worker to return home safely from their workplace as set out in our WHS Policy.
Macquarie’s WHS vision, “Safe workplaces which enable and empower people to do their best work”, is designed in connection with Our Purpose to empower people to invest and innovate for a better future.
Macquarie has integrated WHS into the equity and fund management investment lifecycle from due diligence prior to investment through to divestment. We believe there is a strong correlation between actively managing WHS risk and improving investment returns.
Our approach acknowledges that it is the responsibility of the management teams within each of our investments to manage WHS risks and Macquarie plays a key role to support the management teams in achieving the WHS objectives for the business.
Prior to making an investment, we seek to identify material WHS risks relevant to the investment. If required, we will perform detailed due diligence which is supported by our internal subject matter experts and/or external advisors.
The due diligence results inform the transition plan for the investment. Prior to making the investment, the due diligence results and transition plan are presented for consideration and approval to the applicable investment committee(s).
During the first year of investment, we focus on closing out the action items in the transition plan and seeking to ensure a strong WHS governance set-up is in place at the investment including (but not limited to) WHS reporting and regular WHS assurance.
In our investments, we aim to reduce WHS risk and improve performance, increasing the value of the company or project. Macquarie Operating Groups have tailored Safety Alignment Frameworks to drive consistent WHS principles and expectations for portfolio companies.
WHS is the responsibility of management within each portfolio company. The portfolio company board oversees the management of WHS, with Macquarie Nominee Directors receiving regular training on WHS governance. Portfolio companies regularly monitor and report on WHS performance and risk management to Macquarie, including outcomes of incident investigations where there was a fatality or serious injury, or the potential for a fatality or serious injury.
WHS remains a continual focus during divestment, including through the preparation and disclosure of information on WHS performance and management.
To find out more about what we have done over the last year, refer to the Macquarie Group Sustainability Report.
