Responsible investment

LGS is Australia’s leading responsible and sustainable superannuation fund. We believe that the consideration and integration of ESG factors in our investment decision-making process helps mitigate potential risks and maximise long-term returns for our members.

We are committed to ethical and sustainable investment, and we are one of a very small number to be certified as a responsible super fund by the Responsible Investment Association of Australasia.

"We recognise that the prosperity of the economy and the wellbeing of our members depend on a healthy environment, social cohesion and good governance of the companies in which we invest."

Moya Yip, Head of Responsible Investment

Integrating ESG into our investments

LGS’ negative screens exclude investments that are not aligned with our values in approximately 265 companies globally involved in tobacco, controversial weapons, gambling services, coal mining, coal fired electricity generators and oil tar sand companies.

As a result, LGS’ share portfolios successfully achieved Weighted Average Carbon Intensities (exposure to carbon-intensive companies) below their market benchmark – by 18% on Australian equities and 30% on international equities. 

LGS actively seeks out investment opportunities that have positive environmental and social impacts with over $4bn (~30%) of our entire fund invested in low carbon assets which include renewable energy infrastructure and green bonds. Additionally, 17% of our Australian Equities and 37% of our international equities portfolio is made up of companies involved in Clean Technology Solutions.

LGS’ meticulously developed Active Ownership Policy aims to achieve positive social and environmental outcomes by being a responsible long-term focused steward of our members’ savings.

Responsible investment certification

LGS is a certified responsible investor, with investments across Australian and international shares, property, infrastructure, private equity and absolute return asset classes.

• LGS received a whole of fund certification as a Responsible Super Fund by the Responsible Investment Association of Australasia (RIAA). Our entire fund is certified to be sustainably and responsibly invested. 

• LGS has been included in the UNPRI 2019 Leaders' Group for responsible investment excellence. Only 10% of all UNPRI asset owner signatories are included in the UNPRI 2019 Leaders’ Group.

Recent awards

LGS is proud to receive recognition from the investment community for our continuous service and commitment towards responsible, sustainable and ethical investment.

• LGS has been named Australia’s ‘Best Green Super Fund’ six times by Money Magazine since 2012.
   
• LGS has won the SuperRatings Infinity Award for leading the industry in Sustainable Investment Practices six times since the award was established in 2008.
   
• LGS achieved the No.1 Rank out of 500 of the world’s largest asset owners in the 2017 Global Climate Index by the Asset Owners Disclosure Project for leading the world in managing climate change risks.
   
• LGS received Australia's first carbon neutral property portfolio certification by NABERS in 2019.
   
• LGS’ property portfolio is the first portfolio in Australia to receive a Green Building Council of Australia (GBCA) 5-Star Green Star rating and was awarded 5-Stars in the 2018 Global Real Estate Sustainability Benchmark (GRESB) Survey.