Local Government Super (LGS) has been ranked second globally for sustainable investment practices, according to the Climate Institute's Asset Owner's Disclosure Project (AODP) survey of the world's top-ranked green investors.
LGS also retained its' AAA rating in the AODP survey, which assesses how 458 of the world's largest investors are managing risks and opportunities associated with climate change while also protecting members' retirement savings from climate risk.
LGS currently invests more than $4.2 billion of assets in responsible strategies across multiple asset classes, with LGS chief executive Peter Lambert stating that climate change was the most important environmental, social and governance (ESG) investment issue for the group.
"Investment markets are continually changing and increasingly, that change includes greater awareness of the associated environmental, social and governance (ESG) risks. LGS is proud to be a leader in managing these risks, which we have long recognised as affecting long-term investment outcomes," Lambert said.
Lambert said highlights of LGS's commitment to ESG investing include its Sustainable Australian Shares investment option, as well as LGS being the only Australian super fund investing in the AAA-rated Green Bonds issued by the European Bank for Reconstruction and Development (EBRD), which focus on environmentally sustainable projects.
Lambert said that as the superannuation industry adopted ESG practices more widely, it was important to recognise this was an evolving field requiring that investors remain open to new innovations and continually improve ESG performance.
"Building more sustainable investment portfolios involves not only investment per se, but also a commitment to ongoing transparency about the impact of these investments and active participation as asset owners," he said.
"Members can expect more from us in the new year as we work to safeguard their investments from environmental, social and governance risks."
