LGS' direct property portfolio sets annual objectives for the environmental performance of the portfolio and its tenants and monitors performance on a quarterly basis.
For example our current targets include 5 star NABERS Energy and 3.5 star NABERS water ratings for the whole portfolio.
We also aim for 80% of our tenants to be signed up to 100% GreenPower (renewable energy).
In other asset classes, LGS' ESG and Responsible Investment objectives are implemented in two ways.
- Specific ESG and RI actions & goals are set in the half yearly objectives of internal sustainability staff and outcomes are monitored in the half yearly performance review. Objectives might include looking at ESG research providers, assisting in a sector review & manager search, or reviewing the negative screen criteria in the SRI Overlay.
- LGS has a well established RI policy and governance framework to support Responsible Investment and ESG integration in our investment process. Most of LGS' work in responsible investment is therefore working on the implementation of the policy. This involves close co-ordination with the LGS Chief Executive Officer and, in particular, the LGS Chief Investment Officer on sector and manager mandate reviews. Additionally, the Head of Sustainability participates in LGS Board level Investment Committee meetings, must provide a report on all ESG/RI activities and provide an ESG assessment on all new mandates submitted for approval.