LGS leads in combating climate change

Local Government Super (LGS) has been ranked as Australia's top fund and the world's second best fund for sustainable investment by the Assets Owners Disclosure Project (AODP).

AODP said LGS was a "long-standing leader" in combating climate change.

LGS chief executive officer, Peter Lambert, said "we believe that economic prosperity and the financial well-being of our members depend on a healthy environment, social cohesion and sound corporate governance, and we integrate these considerations into our investment approach".

"LGS sees climate change as the number one long-term investment risk, so we've developed a sophisticated approach to managing this risk across divestment in carbon intensive sectors, engagement, positive low carbon investments and advocacy," he said.

"We currently have over $700 million invested in low carbon opportunities across listed and private equities, fixed interest and property including renewable energy generation and clean technology development, waste and recycling processing, energy efficiency and sustainable agriculture."

LGS attributed their top rankings to how they engaged with industry groups, fund managers, companies, and the public about the risks of climate change. Lambert said LGS engaged with BHP Billiton, Westpac, Commonwealth Bank, ANZ, and NAB on climate change related issues.

The AODP is a non-for profit organisation that ranks 500 of the world's biggest investors, on how they manage climate change risks and opportunities.