LGS ESG Report - December 2019

LGS recognises ESG factors and sustainability as important considerations in driving both long term investment returns and reducing risk.

LGS' Responsible Investment approach uses a combination of negative screening to limit our exposure to companies with a high ESG risk profile and positive screening to identify positive impact investments.

LGS is proud to be included in the UNPRI 2019 Leaders' Group for ESG integration.

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LGS International Portfolio

ESG Quality Score

The ESG Quality Score provides an indication of constituent companies' ability to manage risk and opportunities arising from ESG exposures in the LGS International Portfolio.

In the Second-Half of 2019, the ESG Quality Score was 5.70 compared with 5.6 in 2018 with a 5-Year moving average of 5.43.

Key ESG Quality Score detractors within the LGS International Portfolio include the Social Opportunities and Human Capital sectors.

1QualityScoreTrendDec2020

 2QualityScoreDec2019

ESG Pillars Score

ESG Pillars Score provides a breakdown of constituent companies' exposure to each individual ESG Pillar in the LGS International Portfolio.

In the Second-Half of 2019, 'Governance' was the best performing pillar (1.15% above benchmark while 'Environment' was the worst performing pillar (0.55% below benchmark).

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4SocialPillarsDec2019

5GovernancePillarsDec2019

Top Performing ESG Categories

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ESG Rating Distribution

A higher ESG rating indicates that portfolio constituents demonstrate stronger and/or improving management of financially relevant ESG issues. The underlying companies may be more resilient to disruptions arising from ESG events.

23.4% of the International Portfolio was invested in ESG Leaders compared with 26.1% in the International Benchmark.

7IntnlPortfolioRatingDec2020

 

LGS Australian Portfolio

ESG Quality Score

The ESG Quality Score provides an indication of constituent companies' ability to manage risk and opportunities arising from ESG exposures in the LGS Australian Portfolio.

In the Second-Half of 2019, the ESG Quality Score was 6.36 compared with 6.60 in 2018 with a 5-Year moving average of 6.48.

Key ESG Quality Score detractors within the LGS Australian Portfolio include the Product Safety and Human Capital sectors.

8QualityScoreTrendDec2019

 

9QualityScoreDec2019

ESG Pillars Score

ESG Pillars Score provides a breakdown of constituent companies' exposure to each individual ESG Pillar in the LGS Australian Portfolio.

In the Second-Half of 2019, 'Governance' was the best performing pillar (1.98% above benchmark while 'Social' was the worst performing pillar (4.76% below benchmark).

10EnviroPillarsDec2019

11SocialPillarsDec2019

12GovernancePillarsDec2019

Top Performing ESG Categories

13TopPerformingCatDec2020   

ESG Rating Distribution

A higher ESG rating indicates that portfolio constituents demonstrate stronger and/or improving management of financially relevant ESG issues. The underlying companies may be more resilient to disruptions arising from ESG events.

29.0% of the Australian Portfolio was invested in ESG Leaders compared with 33.1% in the Australian Benchmark.

14AustlPortfolioRatingDec2020

 

1. International Benchmark : MSCI ACWI ex. Australia, Australian Benchmark : MSCI Australia IMI.
2.The report above has been prepared using data provided by MSCI ESG Research.

The information on this website is of a general nature only and does not take into account your personal objectives, situation or needs. You should consider obtaining professional financial, taxation and or legal advice tailored to your personal circumstances prior to making any financial decision.