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HESTA Super Fund

PRI reporting framework 2020

You are in Strategy and Governance » Governance and human resources

Governance and human resources

SG 07. RI roles and responsibilities

07.1. Indicate the internal and/or external roles used by your organisation, and indicate for each whether they have oversight and/or implementation responsibilities for responsible investment.

Roles

Select from the below internal roles

          Head of Impact
        

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

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.

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

3.5 Number

07.4. Additional information. [Optional]

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.


SG 07 CC. Climate-issues roles and responsibilities

07.5 CC. Indicate the roles in the organisation that have oversight, accountability and/or management responsibilities for climate-related issues.

Board members or trustees

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

Other Chief-level staff or heads of departments

Portfolio managers

Investment analysts

Dedicated responsible investment staff

External managers or service providers

07.6 CC. For board-level roles that have climate-related issue oversight/accountability or implementation responsibilities, indicate how these responsibilities are executed.

The wider HESTA Board and its commitees recieve Board papers on climate-related risks, including but not limited to:

  • physical risks of climate change (risk of the impact of increasing number of extreme weather events to the HESTA real asset portfolio)
  • policy risk, such as the risks stemming from government policy and legislation resulting in increased cost of compliance (such as mitigation, taxes or permit, disclosure) and increased input costs (such as carbon risks). 

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 Investment Committee, ImpactCo considers and monitors the HESTA Impact program of work and reviews its ambition in consultation with the HESTA Board.

ImpactCo comprises two directors from the Investment Committee, two directors drawn from the wider HESTA Board and one external expert who is not a member of the Board. HESTA’s CEO, CIO, Head of Impact and Company Secretary also attend all ImpactCo meetings. Other members of the Board are welcome to attend meetings, but do not have voting rights.

07.7 CC. For management-level roles that assess and manage climate-related issues, provide further information on the structure and processes involved.

To alllow members of the Investment Management and Investment Execution team to fully assess and manage climate-related and all other responsible investment-related issues, HESTA established the Responsible Investment Steering Group (RISG) in January 2019. The RISG comprises:

  • Chief Investment Officer;
  • Executive - Investment Execution;
  • Head of Impact;
  • General Manager - Listed;
  • General Manager - Unlisted;
  • General Manager - Strategy and Economics;
  • Members of the wider Responsible Investment team, as required.

07.8 CC. Indicate how your organisation engages external investment managers and/or service providers on the TCFD recommendations and their implementation.


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


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