For the purposes of this report 'Portfolio Managers' refers to 'HESTA General Managers' including the General Manager - Listed Assets, the General Manager - Unlisted Assets, the General Manager - Quantitative Solutions & Risk and the General Manager - Strategy and Economics and 'Investment Analysts' refers to 'HESTA Investment Managers and Investment Analysts'.

Board members or trustees

Oversight/accountability for responsible investment

The full Board of HESTA has accountability and oversight of HESTA's Responsible Investment program including the Responsible Investment Policy, Active Ownership Policy and Climate Change Policy. The Board executes this accountability and oversight by approving these policies, monitoring their implementation at least annually, and ensuring they are reviewed every three years, delegating this responsibility to the HESTA Board Investment Committee (IC).

Additionally, in April 2019 the HESTA Board established the Impact Committee (ImpactCo), tasked with oversight of the HESTA Impact program – bringing together the Fund’s responsible investment, advocacy and corporate social responsibility activities. Chaired by the Chair of the IC, ImpactCo considers and monitors the HESTA Impact program of work and reviews its ambition in consultation with the HESTA Board.

HESTA's Board approves annual actions, including ESG actions, and monitors their achievement at the end of each year through the review of the HESTA Action Plan. The Board also oversees implementation of the various policies and monitors implementation through quarterly ESG reports, an annual ESG Review and ad hoc reports and updates.

Head of Impact

Oversight/accountability for responsible investment

The Head of Impact has accountability and oversight of HESTA's Responsible Investment program including the implementation of the Responsible Investment Policy, Active Ownership Policy and Climate Change Policy. This responsibility is executed through monthly meetings with the HESTA CIO and General Managers and weekly meetings with the wider HESTA Responsible Investment team. The Head of Impact further has accountability and oversight of HESTA’s public policy advocacy and corporate social responsibility program.

Oversight and accountability for responsible investment previously sat with the Executive – Investment Execution within HESTA. Responsibility transferred to the newly created role of Head of Impact during the reporting period. As the Head of Impact reports to the HESTA CIO in regards to her responsible investment duties, the Responsible Investment team is now fully integrated into the investment team.

General Managers (GMs)

Oversight/accountability for responsible investment

GMs have responsibility to ensure that HESTA’s Responsible Investment program is appropriately incorporated in their areas of responsibility.

Implementation of responsible investment

GMs implement HESTA's Responsible Investment program, including the Responsible Investment Policy, Active Ownership Policy and Climate Change Policy through monthly meetings with the relevant IMs, in consultation with the wider Responsible Investment team, to discuss priorities and activities. GMs also ensure ESG questions are incorporated into manager due-diligence framework and questions as to how a manager integrates ESG considerations into decision making are also included into our on-going monitoring program.

Investment managers (IMs), Senior investment analysts (SIAs) and Investment analysts (IAs)

Implementation of responsible investment

IMs, SIAs and IAs assist with the implementation of HESTA’s Responsible Investment program to their asset class. The IMs, SIAs and IAs, with the support of the wider Responsible Investment team:

• incorporate ESG into the selection, appointment and monitoring of investment managers in their asset classes
• identify and progress key ESG actions

Investment manager - ESG (IM - ESG)

Implementation of responsible investment

The IM - ESG is responsible for coordinating the implementation of the HESTA’s Responsible Investment program and for providing advice on the implementation of these Policies to HESTA's investment team and other relevant HESTA staff.

Senior Investment Analyst - ESG (SIA-ESG)

Implementation of responsible investment

The SIA - ESG are responsible for providing implementation support to the IM - ESG to deliver the Responsible Investment program, including proxy voting and company engagement.

External managers or service providers

Implementation of responsible investment

HESTA has appointed a range of external managers and service providers to assist in the implementation of Responsible Investment program. Each external manager or service provider is responsible for implementation of a specific aspect of HESTA's ESG program. For example, external managers assist HESTA to implement our Responsible Investment Policy by incorporating ESG into their investment processes and decision making, as well as their active ownership policies and practices. ESG engagement service providers assist HESTA to implement our Active Ownership Policy by engaging with companies on ESG issues on behalf of HESTA and ensuring progress towards achieving the behaviour change objectives.

A range of other HESTA staff play a role in assisting with the implementation of HESTA's Responsible Investment Policy, Active Ownership Policy and Climate Change Policy. For example, staff in the Marketing and Communications Unit assist with the development of communications for members and other key stakeholders on our approach to ESG as well as our ESG policies, processes, practices and performance. The staff in the Engagement Strategy and Advice Unit assist with the direct communication with our members and employers.