Governance and Regulatory Framework
Sydney Children’s Hospitals Foundation exists to promote charitable investment in the prevention or management of childhood illness, with a focus on kids and families receiving treatment or care in services provided by Sydney Children’s Hospitals Network. To deliver on this purpose, the Foundation operates within the following legal and regulatory framework.
We are committed to the highest standards of personal and corporate integrity.
Good governance leads to better outcomes and as the Foundation continues to grow in size and complexity, we will maintain a robust corporate governance and risk management approach.
This means looking after our employees well, building a culture of values-driven behaviour, and demonstrating high levels of accountability and transparency in all our relationships and financial transactions.
We are an independent health promotion charity, registered with the Australian Taxation Office as an Item 1 Deductible Gift Recipient.
We are a company limited by guarantee, registered with the Australian Securities and Investments Commission.
We are registered with the Australian Charities and Not-for-Profits Commission (ACNC) and we are an approved holder of the Registered Charity Tick.
The Foundation has an independent voluntary Board, which ensures Sydney Children’s Hospitals Foundation is operating legally, ethically, and responsibly. The purpose and activities of the Foundation are defined in our Constitution, which guides the Board’s decisions and underpins our strategic direction.
Through prudent management, the Foundation has accumulated funds that are invested strategically to protect our long-term security and provide continuity in delivering positive outcomes for children’s health.
The Board has ultimate fiduciary responsibility for the management of these funds and has delegated authority to the Audit and Risk Committee (ARC) to ensure they are invested in line with the Foundation’s purpose. The ARC has appointed JBWere to manage the funds under an Investment Policy Statement (IPS).
Socially responsible investment
The Foundation has a responsibility to ensure that our investment practices are in accordance with the expectations of our beneficiaries, stakeholders and the broader community. To align the investment mandate with these material issues, the Board has determined that no direct investments will be made in securities (companies) deriving sales revenues from:
- Tobacco production and distribution
- The use of child labour (as defined under UN Conventions).
Where the Board concludes an organisation is not behaving in a socially responsible manner, it reserves the right to instruct JBWere to specifically exclude this organisation and all associated holdings from the portfolio.
In making these decisions the Board and the ARC will consider the broader environmental, social and governance (ESG) record of the company in question. They accept that the exclusion of industries and specific stocks has the potential to limit the risk-adjusted return generated.