This report shows public data only. Is this your organisation? If so, login here to view your full report.

Active Super

PRI reporting framework 2020

Export Public Responses
Pdf-img

You are in Strategy and Governance » Objectives and strategies

Objectives and strategies

SG 05. RI goals and objectives

05.1. Indicate if and how frequently your organisation sets and reviews objectives for its responsible investment activities.

05.2. Additional information. [Optional]

LGS' direct property portfolio sets annual objectives for the environmental performance of the portfolio and its tenants and monitors performance on a quarterly basis. Current targets include 5 star NABERS Energy with 100% GreenPower and 4.0 star NABERS Water ratings for the whole portfolio. We also aim for 80% of our tenants to be signed up to 100% GreenPower (renewable energy).

In other asset classes, the LGS ESG and Responsible Investment objectives are implemented in two ways:

  1. Specific ESG and RI actions & goals are set in the half yearly objectives of internal RI staff and outcomes are monitored in the half yearly performance review. Objectives might include looking at ESG research providers, assisting in a sector review & manager search, or reviewing the negative screen criteria in the SRI Overlay.
  2. LGS has a well established RI policy and governance framework to support Responsible Investment and ESG integration in our investment process. Most of our work in responsible investment is therefore working on the implementation of the policy. This involves close co-ordination with the LGS Chief Executive Officer and, in particular, the LGS Chief Investment Officer and Portfolio Managers on sector and manager mandate reviews. Additionally, the Head of Responsible Investment participates in LGS Investment Committee meetings, must provide a report on all ESG/RI activities and provide an ESG assessment on all new mandates submitted for approval.
  3. An ESG/RI Review is performed for each asset class depending on the Investment Committee work programme. 

 


SG 06. Main goals/objectives this year

06.1. List the main responsible investment objectives that your organisation set for the reporting year.

Responsible investment processes

Key performance indicator

          Key staff undertake PRI Academy modules and attend relevant RI conferences
        

Progress achieved

RI staff members attended various RI related conferences including ACSI's Climate Change Reporting, Reporting Against The Modern Slavery Act and IGCC's TCFD Reporting Masterclass. RI Staff members also particiapted in various RI related collaborative engagements which include listed companies such as Coles, Origin Energy and BHP. The new Responsible Investment Analyst will undertake the Getting Started in RI module of the PRI Academy.

Key performance indicator

          Key staff undertake PRI Academy modules and attend relevant RI conferences
        

Progress achieved

RI staff members attended various RI related conferences including ACSI's Climate Change Reporting, Reporting Against The Modern Slavery Act and IGCC's TCFD Reporting Masterclass. RI Staff members also particiapted in various RI related collaborative engagements which include listed companies such as Coles, Origin Energy and BHP. The new Responsible Investment Analyst will undertake the Getting Started in RI module of the PRI Academy.

Key performance indicator

          Increased communication and engagement on the LGS RI and sustainability program across the organisation.
        

Progress achieved

Members of the LGS Responsible Investment Team completed two presentations on the LGS RI program for our internal staff - one for our shareholders (DEPA) and the other specifically to LGS CRM.

We have also updated ESG Quality, Carbon Emissions Reports and Proxy Voting reports so these are more member friendly, analytical and meaningful. LGS' biannual carbon emissions and ESG risk report are distributed to members of the Marketing team to increase awareness on current ESG performance and for inclusion within various communication and presentation materials as required. Content on LGS ESG related activities was also included on the LGS intranet, twitter feed and staff newsletter.

The RI team produces a quarterly newsletter showcasing investments within each asset class from a responsible investment perspective.

Key performance indicator

          PRI - IPR
ACSI - Increased analyst engagement
IGCC - Climate Action 100+ Participation
RIAA - Impact Measurement Webinars
        

Progress achieved

In 2019, we participated in 31 collaborative and direct engagement activities covering a variety of issues including climate change, remuneration structures, staff underpayment and general sustainability performance.

 

 

 

Key performance indicator

          Introduce new manager ESG due diligence and monitoring processes.
        

Progress achieved

In 2016/17 we developed a new methodology for reviewing the ESG capabilities and performance of external managers. The methodology was initially developed for listed equities and has now been applied to private equity, infrastructure, opportunistic alternatives and fixed income. We are continually looking to refine, update and improve the ESG Manager rating methodology with the model now being applied across the entire portfolio.   

In 2019, we completed proprietary methodology for ESG ratings with a view to rank all our fund managers. This was applied to all asset classes and we correlated these rankings with performance of all fund managers. This methodology is applied for onboarding, managing & monitoring and removing fund managers.

.

Financial performance of investments

ESG characteristics of investments

Key performance indicator

          Increase allocation to companies with positive ESG ratings via the LGS SRI Overlay.
        

Progress achieved

We have maintained proactive investment in positively rated companies in the LGS SRI Overlay.

Other activities

Key performance indicator

          Participation in collaborative RI initiatives including PRI, ACSI, RIAA and IGCC led events and projects.
        

Progress achieved

In 2019, we participated in 31 collaborative and direct engagement activities covering a variety of issues including climate change, remuneration structures, staff underpayment and general sustainability performance.

Key performance indicator

          Increasing membership of RI organisations in Australia.
        

Progress achieved

We showcase research (eg. RIAA) in both internal RI presentations as well as to our members via AGM presentations. 

Key performance indicator

          Contribute to RI best practice case studies.
        

Progress achieved

Ongoing. Case studies that profiled LGS throughout 2019 include:

  • 2019 UNPRI Leaders Group
  • Achieved Australia's first Carbon Neutral Property Portfolio Certification
  • Responsible Investment Association Australasia's (RIAA) Responsible Investment Super Study 2019.
  • Super Review Money Management- "$12 billion FUM milestone proof responsible investing works"
    • https://superreview.moneymanagement.com.au/news/superannuation/12-billion-fum-milestone-proof-responsible-investing-works

LGS was previously included in the below case studies:

  • Asset Owner Disclosure Project for leading practices on managing climate risks
  • Norwegian sovereign wealth fund review of global RI practices

 

06.2. Additional information.


Top