Peter Lambert

5 December 2012 — Local Government Super has won Best Green Super Fund for 2013 at this year’s Money Magazine “Best of the Best” awards.

LGS chief executive officer Peter Lambert said having a strong sustainability strategy was core to the fund’s main aim of achieving strong, long-term investment returns for members.

“The bottom line is that we believe that sustainability must be a key consideration in any investment approach that aims to deliver returns to investors over timeframes that can be in the order of 40 years or more,” he said.

“The reality is that a failure to effectively address social, environmental and related risks in business and investing is increasingly likely to result in a serious downside for all concerned – and that includes our members.”

Mr Lambert said LGS’s point of difference was its holistic approach.

“At LGS we’ve taken a more diversified and robust path, by selecting sustainable options across the entire portfolio,” he said

This year, the company included a global government bond strategy with a $170 million diversified portfolio with an explicit focus on environmental, social and governance risks.

Other 2012 ESG activity which contributed to receipt of this latest Money Magazine award included:

  • specific allocation of up to 15 per cent of the portfolio in primarily “AAA” rated “green” or “climate”’ bonds issued by agencies such as the World Bank, European Investment Bank or Asian Development Bank
  • Introduction of Sustainable Australian Shares as one of the fund’s new single sector investment options
  • Continued activism in proxy voting on behalf of shareholders with a specific focus on monitoring and curbing excessive executive remuneration and establishing strong independent boards to protect shareholder value.

The flagship LGS “green” direct property portfolio comprises a range of independently accredited low-emission and “green” starred buildings.