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2021 ESG report: Our governance
QIC's active Board, committees and tailored policies and standards provide the perspective and structure for efficiency and integrity in corporate governance.
Our governance and accountability measures are well-designed to ensure these structures perform their duties to responsibly further our objectives and targets.
QIC has a corporate structure with clearly drawn lines of accountability and delegations of authority. Adherence to QIC's policies and standards, including the Code of Conduct and Ethics, is required at all times, and the Board actively promotes a culture of risk awareness, quality and integrity.
Our staff are required to observe a high level of professional conduct when undertaking their business activities and respecting our core values of passion, engagement, innovation, excellence and achievement.
Material governance changes in FY21 included:
- The establishment of an Investment Committee (GRE IC) for QICGRE, which replaced the GRE Investment Advisory Panel (GRE IAP). The GRE IC commenced in September 2020. The GRE IC includes independent oversight, dedicated to real estate investment decision making and focuses on the merits of investment matters including acquisitions, divestments, capital projects, valuations and capital management. Although it falls outside the scope of this reporting period, please note that the GRE IC was replaced by the QIC GRE Trustee Governance Committee (TGC) in September 2021 as an important step in achieving a greater level of independent governance.
- Established an Investor Advisory Committee (IAC) for QPF. The QPF IAC was formed on 1 July 2020, with its first meeting held in November 2020. The QPF IAC votes on related body corporate services or transactions and discusses and provides feedback on ESG matters in accordance with its Charter.
- Established an IAC for the QIC Office Fund (QOF). The QOF IAC provides a platform for QOF's trustee to consult and/or obtain approval from investors on certain ESG matters and related party transactions. The QOF IAC was formed in July 2020.
Corporate Governance and Risk Management
We place considerable importance on effective risk management, and have adopted a formal Governance, Risk Management and Compliance (GRC) framework designed to proactively identify, assess and manage risk.
We apply a 'three lines of accountability' approach to managing risks and compliance obligations. This forms part of QIC's broader Governance, Risk and Compliance Framework, which includes relevant Board committees, Executives, investment teams, the Risk Management Group and audit function.
QIC's 'Three Lines of Accountability'
1 During September 2021, with approval from the QIC Board, the existing RE Investment Committee was replaced with a newly established RE Trustee Governance Committee.
QIC Policies and Executive Standards
More information on QIC's framework is available here.
Underlying this corporate governance framework, QIC has a robust internal framework designed to provide the rigour and challenge required to deliver the performance expectations of our clients.
QIC GRE Governance Forums
Within QICGRE, we take careful consideration of the governance forums in place to ensure they are aligned with QIC forums and objectives, and provide robust oversight of our business.
QICGRE Cross-Functional Meeting Structure
1 During September 2021, with approval from the QIC Board, the existing GRE Investment Committee was replaced with a newly established GRE Trustee Governance Committee.
Sustainability Governance
QIC Sustainability Advisory Committee
Previously known as the ESG Advisory Committee, this committee is responsible for providing advice to the Board and meets on a quarterly basis to develop and implement QIC's ESG strategy. The Committee is chaired by QIC's CEO and includes representatives from QIC's Executive Committee, including the CEO, and senior leaders across investment and corporate teams. The Committee was initially formed in June 2017.
GRE Committees
QICGRE has several internal advisory committees that provide advice to the senior executive team and are required to regularly report on the progress of operational priorities and risks they are tasked to manage.
GRE governance is guided by QIC investment policies and procedures, including the GRE Investment Committee2, GRE Delegations of Authority, GRE Sustainability Committee, the QIC Valuations Oversight Committee (formerly the QIC Risk and Valuations Committee), Project Control Group meetings and Investment Portfolio Review meetings.
The Sustainability Committee is a Management Committee established by GRE to ensure governance and oversight in how ESG factors are being integrated across assets managed by GRE. The purpose of the Sustainability Committee is to provide advice and assist with the development, management and enhancement of GRE’s ESG strategy, standards, targets and objectives as they apply to the operation of our real estate portfolios, while having regard to a constantly changing market environment and stakeholder expectations. Oversight of the implementation of asset level initiatives and their alignment with GRE’s ESG strategy, targets and commitments is the key pillar of the Committee’s remit, which is Chaired by GRE’s Managing Director and includes senior leader membership from across the business.
2 During September 2021, with approval from the QIC Board, the existing GRE Investment Committee was replaced with a newly established GRE Trustee Governance Committee.
Ethics and Integrity
At QIC, we believe it is the responsibility of all staff to ensure their personal conduct and behaviour is at all times professional, ethical and lawful.
We maintain a corporate Code of Conduct and Ethics policy which all staff are required to review and acknowledge on an annual basis.
QIC’s Code of Conduct and Ethics is a broad framework of the required behaviours which apply to everyone who works at QIC.
Report Contact
To find out more about environmental, social and governance (ESG) in QICGRE, contact your Fund or Portfolio Manager, Client Services representative or:
Melissa Schulz
General Manager, Sustainability - GRE
