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:
- Fixed income assets presently account for 74% of the investment portfolio benchmark. Within fixed income, 77% are managed against ESG weighted indexes,
- Investment guideline amendments instruct the portfolio managers to prefer investment in green bonds where they offer a similar risk-reward profile to other issues,
- All externally managed assets are run by managers who are currently signatories to the United Nations-supported Principles for Responsible Investment,
- 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.