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Local Government Superannuation Scheme

PRI reporting framework 2017

You are in Strategy and Governance » Objectives and strategies

Objectives and strategies

SG 05. RI goals and objectives

05.1. Indicate if and how frequently your organisation sets and reviews objectives for its responsible investment activities.

05.2. Additional information. [Optional]

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.

  1. 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.
  2. 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.


SG 06. Main goals/objectives this year

06.1. List the main responsible investment objectives that your organisation set for the reporting year.

Responsible investment processes

Key performance indicator

          Education on ESG and RI practices provided to member services, financial planning and client relationship management teams.

Progress achieved

Two financial planners have undertaken the PRI Academy course and three to four will be undertaking them this year. 

Key performance indicator

          Increased communication and engagement in LGS's RI and sustainability program across the organisation via presentations.

Progress achieved

In March 2016 a session on RI and LGS approach to RI was provided to financial planning and client relationship managers. Another has occurred in March 2017.  Content on LGS' ESG activities was also included on the LGS intranet, twitter feed and staff newsletter.

Key performance indicator

          Participation in collaborative engagements undertaken by PRI, ACSI, IGCC and RIAA.
Identification of where company specific engagement may be necessary.

Progress achieved

In 2016 we participated in 18 collaborative engagement activities covering a variety of issues including climate change, human rights, gambling and sucession planning.These were held with ACSI, Citibank, RIAA, Macquarie, Credit Suisse and RIAA.

Financial performance of investments

ESG characteristics of investments

Other activities

Key performance indicator

          Participation in collaborative RI initiatives including PRI, ACSI, RIAA and IGCC led events and projects.

Progress achieved

In 2016 we participated in 18 collaborative engagement activities covering a variety of issues including climate change, human rights, gambling and sucession planning.

Key performance indicator

          Increasing membership of RI organisations in Australia.

Progress achieved

LGS actively promotes the RI organisations in which we participate, with an aim to increase membership and overall participation in RI activities in Australia.

Key performance indicator

          LGS contributed a number of best practice case studies to various organisations throughout the year.

Progress achieved

In July 2016 " Super Funds" magazine we contributed an article on the approach and outcomes LGS has made regarding climate change risk management and negative screens.

06.2. Additional information.