Paradice Investment Management has hired Nicholas Varcoe as head of ESG.
Varcoe will work with the Paradice investment teams to "drive forward the integration of ESG factors, including climate change and modern slavery, in investment decision-making and company interaction," Paradice said.
Varcoe will also be responsible for ESG related policies, databases and internal and external reporting, and will have analyst responsibility for several Australian companies.
Varcoe joins Paradice from Ausbil Investment Management, where he was an ESG analyst and equity analyst. While at Ausbil, Varcoe helped to develop a number of ESG focused funds including the winner of the 2020 Lonsec Sustainable Investment Award. Prior to Ausbil, Varcoe was a member of the Royal Australian Artillery in the Australian Defence Force.
"I am delighted to welcome Nick to the team," said David Paradice, managing director. "Nick's arrival is another important step in the inclusion of ESG in our investment decision-making. In addition, Nick's role will include being an advocate for the importance of ESG capabilities with our clients."
Paradice is a signatory to the PRI and a member of ESG Research Australia.
"Since early 2000 when I was part of an investment industry ESG steering committee, looking at how to implement ESG into investment decision making, I have always believed we have a duty to consider the financial impact of our exposure to, and influence the management of, ESG issues," Paradice said. "Companies that fail to manage their environmental and social impacts effectively, or that fail to adopt robust ethical policies and governance practices, risk suffering direct financial harm or damage to their reputations. I am of the strong opinion that a business' intentional approach to wise management of ESG factors is more likely to lead to long-term success and value creation for investors."
Paradice Investment Management is a privately-owned Australian boutique fund manager established in 1999 by David Paradice.
Paradice currently manage six distinct investment strategies with offices in Sydney, Denver and San Francisco.
The Paradice Australian Small Cap Strategy was launched in 2000 and has been joined by the Australian Mid Cap Strategy in 2006, the Australian Large Cap Strategy in 2007, the Global Small Cap Strategy in 2010 and recently the Global Emerging Markets Strategy and Long Short Australian Equities Strategy in 2019.
In his previous role at Ausbil, Varcoe spoke with FS Sustainability about the investment risks of plastic pollution, and particularly about engagement work with supermarkets, consumer retailers and fast-moving consumer goods (FMCG) companies.
Plastics and their role in the circular economy is one area where investors are looking for improvements in company performance, Varcoe?noted at the time. The circular economy values the full impact of waste, pollution and resources in the overall economic picture.