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Local Government Super tops global green list
Local Government Super (LGS) has been ranked the greenest of 300 of the largest retirement funds in the world in the inaugural global climate investment index.
LGS chief executive Peter Lambert said its holistic approach to environmental, social and governance (ESG) principles meant that it invested across asset classes, rather than just the easiest ones.
Just over half of LGS's total assets are invested in responsible investment strategies in Australia and overseas, spanning equities, property, absolute return, private equity and sovereign bonds.
Lambert said the fund had been working on its ESG strategy for a decade under the philosophy that sustainability is key to any organisation that delivers long-term returns.
"LGS accepts the science around the human impacts on climate change, particularly through the burning of fossil fuels," he said.
"Our Sustainable/Socially Responsible Investment policy views climate change as the most significant environmental risk affecting investment returns.
"It is a complex area, and we are developing strategies that attempt to address these risks and provide strong, long-term returns for our members," he said.
The fund has been involved in a number of green initiatives including carbon footprint analysis, a green direct property portfolio, investments into companies with low carbon or cleaner products and services, and a tobacco ban.
The index is part of the Climate Institute's "Asset Owners Disclosure Project" (AODP), which LGS has been involved with since its AODP's inception in 2010.
LGS is also an active participant in the United Nations Principles for Responsible Investment (UNPRI) and the Investor Group on Climate Change (IGCC).
"Climate change is a global concern and asset owners such as super funds play a key role in responding to these issues," Lambert said.
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