As DLG’s investment strategy evolves, the company is constantly looking for ways to enhance its investment practices with regard to environmental, social and governance (ESG) issues.
To date, the DLG investment strategy has reflected the following initiatives:
- Approximately 95% of externally managed assets are run currently by managers who are UNPRI signatories and therefore incorporate ESG issues in their investment process,
- Almost 90% of the investments in the infrastructure debt portfolio are in schools, hospitals and other social infrastructure assets,
- The commercial property portfolio invests only in assets with an energy efficiency level of D or higher (or with apportioned funds to achieve this level), exceeding the government minimum requirement of an E rating.
During 2018 a significant new initiative was approved to strengthen further the company’s ESG credentials:
- In the first half of 2019, all investment grade bond mandates, which account for 77% of total credit investments, will transition to be managed against ESG weighted indexes,
- Investment guideline amendments now instruct the portfolio managers to prefer investment in green bonds where they offer a similar risk-reward profile to other issues,