Monash Sustainability Enterprises (MSE)

Leaders in Socially Responsible Investments

With vast experience in environmental and social research, MSE aims to promote approaches that satisfy both environmental and commercial objectives while maintaining a commitment to social responsibility. MSE has developed advanced metrics to gauge corporate progress toward sustainability targets, and seeks to demonstrate robust linkages between sustainability and financial drivers. MSE places strong emphasis on engagement with ASX companies to communicate the business case for sustainable development.

MSE was established in 2000 to provide a focus for research into sustainable investment, building and extending on ten years of engagement with Australian industry through the activities of the Monash Centre for Environmental Management. MSE sustainability research analysts span a wide range of disciplines, providing both breadth and depth of experience across industry.

BT Investment Management's long-standing relationship with MSE provides a strong platform for our Socially Responsible Investments funds.

MSE Analytical Model

The analytic framework employed by MSE is based on the premise that companies which demonstrate superior performance on sustainability measures provide sustained value creation for shareholders through enhanced risk management and pursuit of growth opportunities in the emerging market for sustainable products and services.

The MSE rating process seeks to identify companies that:

  1. Demonstrate leadership on social and environmental criteria relative to their peers
  2. Respond proactively to sustainability drivers in the market, thereby protecting and enhancing business value and shareholder value.

ASX companies are assessed on a range of criteria relevant to their specific sustainability exposures. In developing its ratings, MSE takes into account the nature of the company's exposures, drawing on materiality principles to focus the assessment on aspects relevant to the protection and enhancement of long term shareholder value. Depending on analysis of specific company exposures, assessment criteria may include:

  • business strategies
  • governance structures/business ethics
  • management policies, systems, and practices
  • operational initiatives
  • technology development and adoption
  • marketing strategies, product development, and product placement
  • stakeholder interactions and communication.

Benchmarking methods are used to assess company responses, taking into account variations in company size and stakeholder expectations. Analyst assessments are peer reviewed at several points in the rating process.