Sustainable investment

LUCRF Super is committed to responsible, sustainable investment.

Our disciplined approach helps guide our key investment decisions and enables us to act in our members’ best interests.

 

 

Environmental, social and corporate governance (ESG) factors

We have a strong belief that environmental, social and corporate governance (ESG) issues can affect the performance of investment portfolios.

Companies that best manage ESG risks and opportunities are more likely to be sustainable in the future and deliver on performance. This supports the financial security of our members.

How do we take ESG principles into account?

We integrate ESG principles into our investment process by:

  • being a foundation member of the Australian Council of Superannuation Investors (ACSI), which provides independent research and advice to assist super funds manage ESG investment risk

  • being a signatory to the United Nations-supported Principles for Responsible Investment (PRI), a network of global investors committed to responsible investment
     
  • assessing, as a standard process, the ESG capabilities of our equity managers at selection and as part of our ongoing review process
     
  • acknowledging investors of equities are, in essence, owners of the companies and therefore:
    - Using our voting rights on behalf of members to achieve desired  outcomes, such as influencing company management by voting for or against particular issues at shareholder meetings
    - Partnering with, and positively influencing, other companies in the investment industry, creating synergies and increasing the impact of collective activities
     
  • monitoring ESG performance of our equity portfolios, using external specialist research
     
  • being a member of the Investor Group on Climate Change (IGCC), which aims to encourage government policies and investment practices that address the risks and opportunities of climate change, for the ultimate benefit of our members, and
     
  • sponsoring, with ACSI, research relating to labour and human rights issues that form part of the ‘S’ component of ESG.

Our Proxy Voting and Environmental, Social and Corporate Governance Issues Policy sets out the framework that documents how we effectively integrate ESG principles into our sustainable investment process.

In accordance with the policy, we regularly review our investment managers to ensure that our objectives are being met, both on a short-term and long-term basis.

More information

For more information on some of the key steps we’ve taken to ensure your retirement savings are invested sustainably, please refer to our sustainable investment fact sheet.