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Our approach

LGS invests on behalf of our members using a responsible investment approach. We believe that this approach minimises risk, generates better long-term returns, and is in line with our members' interests.

Company
engagement

Transparency

Proxy
voting

Industry
collaboration

Investment
practices

SRI
overlay

Positive
screens

Negative
screens

Company
engagement

Our approach

Responsible investment
at LGS

We actively
engage with companies
about ESG issues through one-on-one meetings, briefings, phone calls and
letters.

We disclose
comprehensive information about our responsible investment practices to raise awareness about how we manage our members’
retirement savings.

We undertake
voting at shareholder meetings for the companies we invest in and publish our decisions before meetings to ensure transparent voting
practices.

We work with
the superannuation industry to advocate for change on environmental, social and/or governance risks
across industries.

We monitor
our investments for ESG risks and engage with our fund managers and advisors on how to integrate ESG considerations into the
investment process.

We short sell or
replace stocks when our fund managers are unable to direct funds away from controversial or high risk companies through investments in
co-mingled trusts.

We seek out
investment opportunities that have a positive social and/or environmental impact on society e.g. renewable energy generation, recycling and
sustainable agriculture.

We will not invest
in controversial industries and limit our exposure to activities which we view as long term investment risks e.g. tobacco, weapons, gambling and some
fossil fuels.

Our investment approach means analysing companies’ environmental, social and governance performance from every angle. To do this we:

  • Restrict investments in companies in certain industries, such as gambling, armaments, old growth logging and tobacco.
  • Engage with companies in which we invest on how to improve their operations.
  • Undertake voting at shareholder meetings to influence company governance.
  • Collaborate with a number of industry groups on responsible investment practices.
  • Ensure sustainable practices in properties we own directly. This includes implementing energy efficiency, waste reduction and recycling, health and safety, environmental risk management and water conservation programs.

For more details on our approach, read our Responsible Investment Policy and our latest performance report for 2017.


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