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PRI reporting framework 2020

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Promoting responsible investment

SG 09. Collaborative organisations / initiatives

09.1. Select the collaborative organisation and/or initiatives of which your organisation is a member or in which it participated during the reporting year, and the role you played.

Select all that apply

Your organisation’s role in the initiative during the reporting period (see definitions)

Provide a brief commentary on the level of your organisation’s involvement in the initiative. [Optional]

LGS has been a signatory to the Principles of Responsible Investment (PRI) since 2007 and actively participates in a range of PRI led activities and working groups. Activities include:

  • Climate Action 100+ - We are a founding signatory/supporter to the new Climate Action 100+ initiative that aims to increase engagement and action on climate risk with the top listed companies around the world.
  • Facebook Collaboration - Letter on participation in reviewing of content re FB, AMZN, Twitter. 
  • Access to Medicine Foundation Statement and SDG3. 
  • UNPRI - Discussion re IPR and effects in SAA. 
  • RIAA - Impact measurement webinar and application to LGS investment performance. 
  • CGI Glass Lewis - Participation in Director Forums (Governance)
  • ACSI - Head of RI is a Board member of ACSI. 
     

Your organisation’s role in the initiative during the reporting period (see definitions)

Provide a brief commentary on the level of your organisation’s involvement in the initiative. [Optional]

LGS is a founding member and client of the Australian Council of Superannuation Investors (ACSI). A representative of LGS was also previously a director of ACSI. LGS also participates in the ACSI Member Council and regularly participates in ACSI related events and activities, including engagement meetings with listed companies and contributing to papers and guidelines. LGS is actively involved in engagement and advocacy pieces produced by ACSI.

A representative of LGS also participated in a new initiative from ACSI to build a Data Portal and provided feedback and recommendations to improve the functionality and data accessibility. 

 

Your organisation’s role in the initiative during the reporting period (see definitions)

Provide a brief commentary on the level of your organisation’s involvement in the initiative. [Optional]

We are a founding signatory/supporter to the new Climate Action 100+ initiative that aims to increase engagement and action on climate risk with the top listed companies around the world. LGS participates and leads engagements in companies to understand climate risks and improve climate related financial disclosures. 

We are the lead investor for WOW - coordinating investor participation, engagement with company chairs/directors as well as with IR staff. 

We are engaged with other Australian CA100+ participants in staying abreast with high emitting companies which are consequently higher risk. 

Your organisation’s role in the initiative during the reporting period (see definitions)

Provide a brief commentary on the level of your organisation’s involvement in the initiative. [Optional]

LGS was the first Australian member of GRESB. LGS participates in the GRESB survey for our own internally managed direct property portfolio (AUD$754 million across 8 properties). LGS achieved a 4 star rating in 2019.  LGS' Head of RI was involved in the launch of the GRESB property results. 

Your organisation’s role in the initiative during the reporting period (see definitions)

Provide a brief commentary on the level of your organisation’s involvement in the initiative. [Optional]

We reviewed the new Green Bond Principles following the release in 2017 and used them to inform the development of the green bond section of our internal manager ESG rating framework.

Your organisation’s role in the initiative during the reporting period (see definitions)

Provide a brief commentary on the level of your organisation’s involvement in the initiative. [Optional]

LGS collaborates with the IIGCC through its membership and involvement with the IGCC in Australia. 

Your organisation’s role in the initiative during the reporting period (see definitions)

Provide a brief commentary on the level of your organisation’s involvement in the initiative. [Optional]

LGS is actively involved with IGCC and participates in related events and activities. LGS represenstatives attend IGCC events including the IGCC TaskForce for Climate Related Financial Disclosures (TCFD) masterclass and the IGCC AGM. LGS views climate change as the most significant investment risk for our portfolio.

          Responsible Investment Association of Australasia (RIAA)
        

Your organisation’s role in the initiative during the reporting period (see definitions)

Provide a brief commentary on the level of your organisation’s involvement in the initiative. [Optional]

LGS is a long standing member of RIAA which is the peak industry body for professionals working in responsible investment in Australia and New Zealand. LGS provides regular input into RIAA newsletters and presents regularly at their various events throughout the year. 

LGS was featured in the RIAA Super Study in 2019 which recognises leading funds within Responsible Investment.

          Asian Investor Group on Climate Change (AIGCC)
        

Your organisation’s role in the initiative during the reporting year (see definitions)

Provide a brief commentary on the level of your organisation’s involvement in the initiative. [Optional]

LGS attends seminars organised by AIGCC. 

          Green Building Council of Australia
        

Your organisation’s role in the initiative during the reporting year (see definitions)

Provide a brief commentary on the level of your organisation’s involvement in the initiative. [Optional]

In 2019 we undertook the GBCA's GreenStar performance assessment for our property portfolio and were awarded a 5 star rating, representing Australian excellence in sustainability performance. For more information on LGS' involvement in Australian green property initiatives, refer to https://www.lgsuper.com.au/investments/how-we-invest-your-money/property-portfolio/


SG 09.2. Assets managed by PRI signatories

Indicate approximately what percentage (+/- 5%) of your externally managed assets under management are managed by PRI signatories.

75 %

SG 10. Promoting RI independently

10.1. Indicate if your organisation promotes responsible investment, independently of collaborative initiatives.

10.2. Indicate the actions your organisation has taken to promote responsible investment independently of collaborative initiatives. Provide a description of your role in contributing to the objectives of the selected action and the typical frequency of your participation/contribution.

Description

          The LGS RI team provides training to our CRM's. The LGS RI team also provides guidance on ESG related issues to our portfolio manager, investment analysts, operational and marketing staff.
        

Frequency of contribution

Description

          LGS provides financial support by being fee-paying clients of industry research groups such as MSCI ESG Research and the Australian Council of Superannuation Investors (ACSI)
        

Frequency of contribution

Description

          LGS has completed own empirical research in all asset classes developing proprietary methodology to measure ESG risk correlation to performance. These data sets now form the basis for systematic application to investment decision making processes.
        

Frequency of contribution

Description

          Since 2010, LGS has included a specific clause on our commitment to Responsible Investment and our SRI Policy in all new Investment Management Agreements. We also have scheduled regular ESG and Responsible Investment issue reporting as part of our external managers regular performance reporting. We actively engage with all of our managers to encourage them to share their PRI Transparency and Assessment reports to us and publicly. Where they are not members, we encourage them to join. Greater transparency is required of all fund managers via the ESG annual D.D questionnaires.
        

Frequency of contribution

Description

          LGS representatives speak at events and conferences on responsible investment on a regular basis. In 2019 the head of Portfolio Management and the CIO spoke at 2 conferences related to responsible investment. 

In 2019, the CIO spoke at 9 member forums and the AGM with regards to responsible investment related topics. Head of RI made presentations to shareholders and CRMs on RI.
        

Frequency of contribution

Description

          We require all of our external managers to provide their UNPRI assessment and transparency report as part of their asset class annual review. Where they are not members, we encourage them to join. It is not mandatory that external managers employed by LGS join the PRI. However, given LGS' emphasis on ESG and RI in determining mandates, potential managers need to demonstrate good understanding of ESG and commitment to RI. Greater transparency is required of all fund managers via the ESG annual D.D questionnaires.
        

Frequency of contribution

Description

          LGS is currently a member of the Climate Action 100+ initiative. LGS representatives lead and participate in engagements with companies to understand climate risks and increase climate related financial disclosures.
        

Frequency of contribution

Description

          The Head of Responsible Investment sits on the Board for the Australian Council for Superannuation Investors (ACSI) and is on ACSI Asset Owner Stewardship Code Committee.
        

Frequency of contribution

specify description

          Extensive public disclosure of RI related information on LGS website.
        

Description

          LGS strongly favours transparency and disclosure. Our website contains significant amounts of information on our policies, processes and approach to ESG and RI as well as reporting. LGS is also regularly in trade and mainstream media on ESG and RI issues. In 2019 there were 70 media articles profiling our RI activities across Australia and internationally.
        

Frequency of contribution

10.3. Describe any additional actions and initiatives that your organisation has taken part in during the reporting year to promote responsible investment [Optional]

 

 

 

 

 

 


SG 11. Dialogue with public policy makers or standard setters

11.1. Indicate if your organisation - individually or in collaboration with others - conducted dialogue with public policy makers or regulators in support of responsible investment in the reporting year.

If yes

11.2. Select the methods you have used.

11.4. Provide a brief description of the main topics your organisation has engaged with public policy-makers or regulators on.

In 2019 our public policy and regulatory engagement was undertaken via our involvement with ACSI. Issues focused on tax and tax transparency, ASX Listing Rules, Modern Slavery Act, Whistleblower policies, executive remuneration, climate change and culture.

  • ACSI submission to the GRI on Tax and Payments to Governments
    • https://acsi.org.au/submissions/acsi-submission-to-the-gri-on-tax-and-payments-to-governments/
  • ACSI submission on Simplifying, Clarifying and Enhancing the Integrity and Efficiency of the ASX Listing Rules
    • https://acsi.org.au/submissions/acsi-submission-on-simplifying-clarifying-and-enhancing-the-integrity-and-efficiency-of-the-asx-listing-rules/
  • ACSI submission to the Board of Taxation on the Post-implementation review of the Tax Transparency Code
    • https://acsi.org.au/submissions/acsi-submission-to-the-board-of-taxation-on-the-post-implementation-review-of-the-tax-transparency-code/
  • ACSI Submission on the Modern Slavery ACSI 2018 – Draft Guidance for Reporting Entities
    • https://acsi.org.au/submissions/acsi-submission-on-the-modern-slavery-act-2018-draft-guidance-for-reporting-entities/
  • ACSI submission on ASIC Consultation Paper 321: Whistleblower policies
    • https://acsi.org.au/submissions/acsi-submission-on-asic-consultation-paper-321-whistleblower-policies/
  • APRA discussion paper 'Strengthening prudential requirements for remuneration'
    • https://www.apra.gov.au/consultation-on-remuneration-requirements-for-all-apra-regulated-entities

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