LPPI reviews each manager's performance in meeting our reporting requirements and their receptivity to ad hoc requests for information. We also consider how they have
- supported us to meet client needs
- shared insights which have helped us evolve our approach to RI.
In 2019 our review has added the manager's portfolio ESG score based on proprietory ESG metrics.
LPPI's internal team has procedural oversight of decision-making by our principal external manager (Property) which enables us to review the due diligence preceding investment decisions. This allows us to review proposal papers, provide comments and pose questions (where appropriate) on aspects of specific interest to us. For example we may ask for information on how an assessment of building sustainability has been made and what considerations have been included for delivering improvements to this in the future.
We may also pose questions on any specific ESG issues identified. We recognise that UK Full Repairing and Insuring (FRI) lease structures often place responsibility for the management and maintenance of the property on the occupier and restrict the manager’s ability to make physical changes to the building thereby limiting the ability to directly influence ESG criteria.