The PIC adheres to good corporate governance practices and conduct in line with the third King Code on Corporate Governance (King III). Investments were also made responsibly through the integration of Environmental, Social and Governance (ESG) issues incorporated into investment processes. The PIC also played a pivotal part in the drafting of the Code for Responsible Investing in South Africa (CRISA).PIC is an advocate for responsible investing, a beacon of good corporate governance and sound management. These principles are also demonstrated by PIC investee companies, asset managers and asset owners. The PIC and the fund managers that invest on our behalf have all adopted the principles of CRISA. The PIC Corporate Governance and Proxy Voting Policy forms part of the mandates held with these managers. The PIC and the Government Employees Pension Fund (GEPF) have also established an ESG Working Committee that looks closely at ESG issues in investments.
The PIC is also a signatory to the UN Principles for Responsible Investments, as well as the UN Global Compact.
The UN Principles for Responsible Investments is a tool kit for integrating ESG issues into mainstream investment decision making and ownership processes. The UN Global Compact principles not only guide our investment processes but also the manner in which the PIC, as an operating entity conducts its own business.
The PIC in consultation with the Centre for Corporate Governance in Africa at the Business School of the University of Stellenbosch has developed a Corporate Governance Rating Matrix. This matrix is used to measure ESG performance of the listed companies in which the PIC is invested. The matrix is updated and scored annually. These results form the basis of the PIC’s engagement with investee companies.
The PIC recently signed-up for the Carbon Disclosure Project which will assist in ensuring that the PIC becomes a significant environmentally friendly investor with the ultimate aim of becoming a completely carbon neutral organisation in the near future.