Fund managers signing mandates with industry fund NGS Super (NGS) will be asked to consider environmental, social and governance (ESG) issues, with the inclusion of new responsible investing clauses.
According to NGS chief executive Anthony Rodwell-Ball the new clauses will be non-prescriptive, but will encourage managers to consider ESG issues in their investment process.
"NGS is very conscious of the risks associated with ESG issues when investing. As a result, a lot of effort has been put into improving the fund's focus on responsible investment and meeting its commitments as a signatory to the Principles for Responsible Investment (UN PRI),"Rodwell-Ball said.
NGS has also created a responsible investment questionnaire to encourage their listed equity managers to consider ESG factors. To be completed annually, the responses will enable NGS to understand how each manager thinks about ESG and how they compare.
"In relation to Australian equity mandates, NGS is putting in place systems to vote on all corporate actions," Rodwell-Ball said.
Internally, the fund has created a responsible investment policy and has joined a number of organisations including The Investor Group on Climate Change, the Carbon Disclosure Project, and ESG Research Australia.
A sustainability committee has been created to advise, monitor and modify the current practices for the use of electricity, paper, water and petrol.
"As the national superannuation fund for non-government schools, NGS seels to lead by example, and reflect the interest and concerns of its members," Rodwell-Ball said.
