Local Government Super

Through our company engagement program, Local Government Super requested Woolworths define the pathway to meet a Science Based Target commitment to reduce greenhouse gas emissions by 2030.

Local Government Super assesses and monitors ESG risk across our entire portfolio in all asset classes via annual reviews. We assess ESG integration and correlation with investment performance using proprietary methodology which has been developed in house. This method is utilised for onboarding, monitoring and maintenance as well as the removal of fund managers. The results are reported within our Investment Committee Papers. We review ESG integration processes and in this way, we can gauge the level of active engagement, incorporation of issues that pertain to specific sectors and how these will impact stock weightings. This is one part of a comprehensive process which looks at all aspects of Policy, Integration, Innovation, Active Ownership and ESG Quality. Qualitative ESG aspects are converted to quantitative scores and compared against investment performance data.

Local Government Super (LGS) reports weighted average carbon intensity (expressed in tons CO2e /$M revenue as recommended by TCFD) and carbon emission figures for both the Australian and international portfolios which are compared against benchmark figures. Historical emissions data and  percentage of portfolio invested in clean technology solutions are also reported. In the ESG Risk Report, LGS reports an overall ESG Quality score as well as scores for individual E, S and G pillars for both the Australian and international portfolios. The portfolio’s top performing ESG categories, ESG rating distributions and historical ESG scores are also reported.