Why does ESG matter
As a member of legalsuper, you’re investing in more than just your financial future.
We believe that considering environmental, social and governance (ESG) factors can have a positive influence on the long-term investment outcomes of our members. We seek to balance the needs of all stakeholders, with a focus on protecting investors, creating value for society, and maintaining good relations with communities.
By investing responsibly, we may help protect your financial future as well as contribute and shape the kind of world that you, your children and grandchildren will live in.
How we incorporate Responsible Investing
Our view is that ESG factors have an impact on our performance and risk profile. As such, we integrate consideration of these factors into the review of risks we consider in our investment decision-making process across the portfolio.
Incorporating responsible investment practices supports our management of reputational and regulatory risks as well as community and member expectations.
- We exercise active ownership in relation to directly held Australian shares. We are guided by the recommendations made by the Australian Council of Superannuation Investors (ACSI). We believe that by voting in accordance with ACSI’s recommendations, (together with other investors advised by ACSI), we can exert the appropriate influence on the Australian companies we invest in.
- We apply some industry portfolio exclusions when making our investment decisions.
- We commit to providing relevant and accessible reporting and communication on Responsible Investment to members and other key stakeholders.
Our investment managers play an important role in managing ESG risks and opportunities on our behalf. Where we have an investment mandate with an investment manager, the ongoing assessment of the investment managers' responsible investment capabilities is a formal component of our manager selection and review process. We expect that each investment manager will have regard for ESG factors. We incorporate consideration of ESG objectives, and application of portfolio screens and exclusions into investment mandates.
Examples to illustrate our ESG approach
We have invested in Evrima, a transforming clinical trial recruitment platform that connects researchers, clinicians and patients together to accelerate research and bring new treatments to patients who need them. This investment supports a female founded business with predominantly female representation on the board and Investment Committees.
HS Orka is the largest private and third largest overall power producer in Iceland. This investment was made in 2019, with the growth platform representing a 272 megawatt pipeline of geothermal projects that are underpinned by purchasing power agreements, strong customer diversification and consistent demand.
We are proud to be a supporter of the recently launched CCCF, a social purpose venture. CCCF supports early-stage social purpose organisations, providing them with financial opportunities to advance their businesses and make a tangible impact to address challenges in areas of social and environmental need.