We engage with the listed companies in which we invest through a variety of channels, including direct engagement with company board members and senior executives, via fund managers and through our involvement in industry groups and associations such as ACSI and the IGCC.
As part of annual reviews of all our assets classes, we engage with external managers about TCFD disclosure and adoption. We follow ACSI recommendations and ask clients to address
direct engagement and direct active ownership work. We generally vote for all annual general meeting resolutions in favour of TCFD reporting and climate change related disclosure including the AGMs for Origin Energy.
LGS' half yearly Carbon Emissions Report is reported broadly inline with TCFD guidelines and assesses LGS' Portfolio Carbon Footprint for our listed equities using the (WACI) Weighted Average Carbon Intensity (t CO2e / $M Revenue) measure recommended by the TCFD. We believe adopting TCFD within our Carbon Emissions Report will promote awareness and encourage industry peers to follow suit.
The latest Carbon Emissions report for December 2019 can be found at https://www.lgsuper.com.au/investments/responsible-investment/sustainable-investment-reports-and-policies/carbon-emissions-report-december-2019/.
Our external ESG provider, ACSI, uses company engagement and proxy voting advice for ASX-listed companies as tools for managing climate change risks and opportunities.
ACSI has been engaging with ASX companies for years on the disclosure and integration of climate-related risks and opportunities. ACSI engages with a broad range of companies on climate risk and also prioritises particular companies given their materiality and exposure. For 2019, there were 20 companies which ACSI focused on TCFD adoption as a primary concern.
ACSI is also actively supporting members’ efforts in the Climate Action 100+ initiative, directly engaging companies alongside members who are lead investors and providing other insights like briefing members on discussions to date. LGS is the lead investor for WOW as part of Climate Action 100+
ACSI also uses proxy voting advice as a mechanism to create engagement on climate-related resolutions and as a tool for signalling where improvement on climate-related issues can be made.