Responsible investment + ESG
Doing what we say. Saying what we do.
FORMALLY COMMITTED RESPONSIBLE INVESTMENT STEWARDS
Since the inception of Woodbridge, we have been formally committed to incorporating responsible investment + ESG considerations into our investment process. We believe these principles support better investment decisions, stronger risk management and more resilient long-term outcomes for our investors.
We embed ESG principles, independent oversight and responsible investment practices into every stage of our investment process, from initial assessment and due diligence through to approval and ongoing loan management. This approach strengthens resilience, builds trust and aligns investor objectives with broader environmental and community outcomes.
We acknowledge the growing awareness across the financial industry, supported by academic research, that Environmental, Social and Governance (ESG) risks can have a material impact on investments. Understanding these factors provides an additional perspective when assessing asset quality, investment risk and long-term performance.
We know investor interest and demand for responsible investment continues to grow, together with expectations for greater transparency around the ESG characteristics of investments.
ESG OPPORTUNITIES
Supporting Australian Clean Energy Future
We encourage on-site renewable energy generation, such as rooftop solar on large-footprint retail or industrial assets, plus efficient building features like low-energy lighting, and efficient heating and cooling. To incentivise this, we offer rate discounts for properties with NABERS or Green Star ratings
Addressing the Undersupply for Affordable Housing
We see opportunity in addressing the undersupply of affordable housing, backing projects that increase accommodation availability and raise living standards for renters. This also supports stronger local communities, where a secure home helps renters feel greater safety, wellbeing and belonging
Investing in Assets that Directly Benefit Surrounding Communities
The Investment Committee will consider all financially material ESG risks identified from the initial credit review. In certain cases, the Investment Committee may ultimately reject the issuance of a term sheet due to the view that the asset, despite passing negative screening and the initial credit review, is materially at risk of breaching Woodbridge’s Responsible Investment Framework.
Health and Wellbeing
We are passionate about supporting communal health and wellbeing, backing projects that strengthen health service connectivity, improve air and water quality management, and utilise native flora and fauna, to create overall healthier environments for communities to live, work and thrive in
OUR RESPONSIBLE INVESTMENT FRAMEWORK
Negative Screening
We apply a negative screen to all investments, avoiding credit opportunities misaligned with our Responsible Investment framework. Woodbridge believes excluded assets face increased valuation risk, driven by lower long-term demand as awareness of ESG risks grows and allocations shift towards ethical investing. Excluded sectors and industries are listed in our Responsible Investment + ESG Policy.
Credit Review
Once a credit investment passes the negative screen, we maintain direct, close communication with the opportunity and conduct fundamental analysis to understand the nature of the investment and any environmental, social or governance risks it could carry, informing our decision
Investment Committee
This committee will consider all financially material ESG risks identified from the initial credit review. In certain cases, the Investment Committee may ultimately reject the issuance of a term sheet due to the view that the asset, despite passing negative screening and the initial credit review, is materially at risk of breaching Woodbridge’s Responsible Investment Framework.
Due Diligence
Once an investment has been approved by the Investment Committee and a term sheet has been issued, the Investment Team then begins the due diligence on the investment. We collect as much information as possible on the investment. Our approach involves active engagement from the investment team – we engage with the borrower to ensure all the information we collect is genuine and accurate.
Approval
Prior to the credit investment proceeding to financial close, the Credit Committee will review the Responsible Investment and ESG due diligence findings and opinions as presented by the Investment Team and approve the loan if no adverse findings are made.
Ongoing Monitoring and Risk Assessment
We perform a monthly review of the ESG risk profile for all our investments and use our ESG Risk Scorecards to report on any changes to these risks to all our investors. A key point of difference at Woodbridge is our engagement and involvement with the asset and borrower during the investment duration.
Negative Screening
We apply a negative screen to all investments, avoiding credit opportunities misaligned with our Responsible Investment framework. Woodbridge believes excluded assets face increased valuation risk, driven by lower long-term demand as awareness of ESG risks grows and allocations shift towards ethical investing. Excluded sectors and industries are listed in our Responsible Investment + ESG Policy.
Credit Review
Once a credit investment passes the negative screen, we maintain direct, close communication with the opportunity and conduct fundamental analysis to understand the nature of the investment and any environmental, social or governance risks it could carry, informing our decision
Investment Committee
This committee will consider all financially material ESG risks identified from the initial credit review. In certain cases, the Investment Committee may ultimately reject the issuance of a term sheet due to the view that the asset, despite passing negative screening and the initial credit review, is materially at risk of breaching Woodbridge’s Responsible Investment Framework.
Due Diligence
Once an investment has been approved by the Investment Committee and a term sheet has been issued, the Investment Team then begins the due diligence on the investment. We collect as much information as possible on the investment. Our approach involves active engagement from the investment team – we engage with the borrower to ensure all the information we collect is genuine and accurate.
Approval
Prior to the credit investment proceeding to financial close, the Credit Committee will review the Responsible Investment and ESG due diligence findings and opinions as presented by the Investment Team and approve the loan if no adverse findings are made.
Ongoing Monitoring and Risk Assessment
We perform a monthly review of the ESG risk profile for all our investments and use our ESG Risk Scorecards to report on any changes to these risks to all our investors. A key point of difference at Woodbridge is our engagement and involvement with the asset and borrower during the investment duration.
MORE THAN JUST A NEGATIVE SCREEN
As direct lenders, we sit closer to the ground than almost any other capital provider. We see the people, the sites, and the communities that our capital touches in real time. That proximity is a privilege, and we don’t take it lightly.
Responsible investment, to us, is not a compliance exercise bolted onto our credit process. It’s a lens we apply actively throughout every step of our investment process, and it is a distinguishing element of our investment process.
We aim for best-in-class transparency in how we implement Responsible Investment considerations into our investments through our various disclosure channels. Our approach is simple – we believe that Responsible Investment objectives and outcomes should be thorough, honest and, importantly, easy to understand.
Our Approach is more than just a negative screen – we monitor, assess and stress test Responsible Investment performance and ESG risks on a regular basis for all our investments, and clearly communicate results to investors
Environment
Greenhouse Emissions
Climate Change Resilience
Resource Efficiency
Site Conditions
Biodiversity Disruption
Greenhouse Emissions
Climate Change Resilience
Resource Efficiency
Site Conditions
Biodiversity Disruption
SOCIAL
Labour Rights
Social Benefit
Community Impact
Local Stakeholders
Employment Conditions
Labour Rights
Social Benefit
Community Impact
Local Stakeholders
Employment Conditions
Governance
Borrower Reputation
Tax and Legal Considerations
Conflits and Fees
Ethics and Conduct
Stakeholder Control
Borrower Reputation
Tax and Legal Considerations
Conflits and Fees
Ethics and Conduct
Stakeholder Control
OUR RESPONSIBLE INVESTMENT + ESG COMMITTEE
Woodbridge’s Responsible Investment + ESG Policy has been developed by our Responsible Investment + ESG Committee.
The Committee is comprised of a mix of executive and non-executive Woodbridge Capital members and external members, and is responsible for considering environmental, social and governance issues relevant to our investment activities and supporting the business in being a leader in responsible investment and ESG performance. In addition, we actively monitor regulatory developments, stakeholder expectations, and evolving best practice to ensure our framework remains relevant, effective, and consistent with global standards.
WE ARE COMMITTED SIGNATORIES AND STEWARDS
Principles for Responsible Investment (PRI) is a United Nations (UN) supported international network of financial institutions working together to implement its six aspirational principles. The PRI is the world’s leading proponent of responsible investment and works to understand the investment implications of environmental, social and governance factors and to support its international network of investor signatories in incorporating these factors into their investment and ownership decisions.
We are the only Australian Private Credit Fund with Retail and Wholesale funds certified as Responsible Investment Products by the Responsible Investment Association of Australasia (RIAA). For a fund to obtain a certification, RIAA formally assesses its responsible investment processes to ensure they are consistent, auditable, and give genuine consideration for ESG related factors and risks. Certified investments must be managed by active stewards and there should be above-market levels of transparency and accountability present in the fund. The RIAA Responsible Investment Certification Program is the leading initiative for distinguishing quality responsible, ethical and impact investment products and services in Australia and New Zealand. We take this certification seriously and we prioritise alignment between our investment activities and RIAA’s responsible Investment philosophy.
GET IN TOUCH
We are truly passionate about investor transparency with regard to ESG risks and opportunities, and we are excited about financing environmentally and socially beneficial infrastructure.
We are always pleased to engage with our investors and other stakeholders on these topics. If you would like to know more about our Responsible Investment + ESG investment structure, please get in touch with us.
