The VicSuper Board of Trustees retains ultimate responsibility for oversight of all aspects of VicSuper's operational and investment decisions. The Trustee follows the investment approach outlined in VicSuper's Investment Policy Statement (IPS) which includes the Fund's commitment to responsible investment. The Trustee receives updates from the Executive in relation to any ESG issues considered to have a potential impact on the Fund or the investment portfolio.
The Investment Committee selects investment managers to populate VicSuper's core and satellite investment structure. The Chief Investment Officer is responsible for formulating VicSuper's investment strategy and for determining objectives in relation to ESG. ESG integration is an element of the manager selection process and VicSuper requires that proposed managers submit responses to a number of responsible investment related questions during the due diligence process.
VicSuper is directly involved in the process of integrating ESG via active ownership. Our internal portfolio managers and investment analysts oversee and implement responsible investment into VicSuper's processes by:
- selecting and monitoring investment managers, including considering ESG integration practices of investment managers during the due diligence process
- retaining third party service providers to engage investee companies, taking part in collaborative engagements and monitoring proxy voting practices
- collecting and monitoring manager ESG related disclosures and outcomes (through case studies)
- collaborating with relevant industry groups and responsible investing signatory bodies.
The Corporate Responsibility team provides support for the Investment team across many of these activities. Representatives from the Corporate Responsibility team also attend responsible investment conferences, forums and signatory working group sessions and provide analysis of outcomes, trends, risk and opportunities to the Investments team, VicSuper’s CEO and VicSuper’s legal, risk and compliance teams. This ensures that best practice information and industry trends are shared across VicSuper’s business.
We are also indirectly involved in ESG integration through our external investment managers. VicSuper encourages all of our fund managers to include consideration of ESG factors in their investment processes. We also encourage them to engage with companies in relation to ESG issues. Managers are required to provide evidence of how ESG factors are taken into account in investment decisions via discussions at meetings and the provision of case studies.