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VicSuper (Delisted)

PRI reporting framework 2017

You are in Strategy and Governance » Governance and human resources

Governance and human resources

SG 07. RI roles and responsibilities

07.1.

Roles present in your organisation

          Manager Corporate Responsibility
        

Other description (1)

Other description (2)

          Corporate Responsibility Consultant
        

07.2. For the roles for which you have RI oversight/accountability or implementation responsibilities, indicate how you execute these responsibilities.

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.

 

07.3. Indicate the number of dedicated responsible investment staff your organisation has.

0 Number

07.4. Additional information. [Optional]

VicSuper has a small team of portfolio managers and investment specialists which implements the Fund's investment policy and strategy. VicSuper does not consider ESG as a separate task or a separate role within our organisation. We firmly advocate that everyone, from investment analysts right up to the Trustee, plays their part in the ESG integration process.

In addition to allocating implementating responsibility across all internal and external Corporate Responsibility and Investment roles, VicSuper's Corporate Responsibility (CR) team members have been formally allocated a number of explicit RI/ESG process tasks in their annual performance plans. They are also required to engage and collaborate very closely with the Investments team to fulfil and promote VicSuper's responsible investment obligations. 


SG 08. RI in performance management, reward and/or personal development

08.1. Indicate if your organisation’s performance management, reward and/or personal development processes have a responsible investment element.

Board members/Board of trustees

08.2. Describe any activities undertaken during the reporting year to develop and maintain Board members’ skills and knowledge in relation to responsible investment.

Both Trustee Directors and Investment Committee Members are subject to regular internal and external investment-related presentations from investment managers and/or other investment specialists. These presentations include information/education on particular investment topics, which may from time to time include ESG-related issues.

Chief Executive Officer (CEO), Chief Investment Officer (CIO),  Investment Committee

Portfolio managers

Investment analysts

Other role (1) [from SG 07]
          Manager Corporate Responsibility
        
Other role (2) [from SG 07]
          Corporate Responsibility Consultant
        

08.3. Provide any additional information on your organisation’s performance management, reward and/or personal development processes in relation to responsible investment.

For the first half of 2016, all VicSuper employees took part in the company wide "i Perform and Grow" performance management and development program (iPAG) . 

Each employee, including investment staff, develop a performance management and development plan at the commencement of the financial year. The plan was built in alignment with VicSuper’s strategic plan and objectives to ensure that everyone is working towards consistent goals. Each employee plan included performance objectives aligned with VicSuper's strategic pillars.

From July 2016, employee performance plans were transition to a new integrated talent management program which encompasses and manages all aspects of each employees job and career development (MyCareer). Under the new system, each employee is assigned a number of employment goals and measures.Expectations are specific to a particular team and an individual role but responsible investment/ESG related tasks are allocated to a number of roles. Performance against the goals and measures influences remuneration increases and individual performance bonus payments on a yearly basis.

Members of both the Investments team and the Corporate Responsibility teams have responsible investment/ESG goals and measures and professional development requirements built into their My Career performance plans.

08.4. Describe the level of experience board members/trustees/chief-level staff have with incorporating ESG factors into investment decision-making processes.

          
        

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