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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 employees 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.

While there were no significant changes to governance across the broader Real Estate team over FY23, at Fund level QIC’s largest real estate fund, the QIC Property Fund, undertook a restructure which included the establishment of an Investor Committee (‘IC’). The IC works in conjunction with Real Estate’s already established governance framework and has the ability to approve and give relevant Trustee directions on various ‘Reserved Matters’. The IC has governance oversite over matters including (but not limited to) approval of the annual Budget and Business Plan, material changes to various Policy documents, the acquisition and / or divestment of assets and the approval of project capital expenditure.

Corporate governance and risk management

The QIC Board places considerable importance on effective risk management and has adopted a formal Risk Management Framework (RMF) that is designed to proactively identify, assess and manage risks.

Under this framework, QIC applies a 'three lines of accountability' approach to managing risks and compliance obligations.

The QIC Board has ultimate accountability for risk and is responsible for setting QIC’s corporate strategy and risk appetite, identifying and monitoring risks that may affect our ability to achieve strategic objectives and ensuring that the CEO and the senior executives are appropriately monitored and incentivised to manage the business effectively. The QIC Board has put in place Board committees, each of which is responsible for overseeing specific risks facing QIC.

Figure 33: QIC's Three Lines of Accountability approach

Three lines of accountability  
QIC Real Estate governance forums

Within QIC Real Estate, our governance forums are aligned with QIC forums and objectives, and provide robust oversight of our business.

QIC Real Estate 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.

QIC Real Estate governance is guided by QIC investment policies and procedures, including the Real Estate Trustee Governance Committee, Real Estate Delegations of Authority, Real Estate Sustainability Committee, the QIC Valuations Oversight Committee, Project Control Group meetings, and Investment Portfolio Review meetings.

Figure 34: QIC Real Estate governance forums 

RE Governance 

Sustainability governance

QIC Real Estate Committees

QIC Real Estate 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.

QIC Real Estate governance is guided by QIC investment policies and procedures, including the Real Estate Trustee Governance Committee, Real Estate Delegations of Authority, Real Estate Sustainability Committee, the QIC Valuations Oversight Committee, Project Control Group meetings, and Investment Portfolio Review meetings.

The Real Estate Sustainability Committee is a Management Committee established to ensure governance and oversight of ESG integration across assets managed by QIC Real Estate. The purpose of the Sustainability Committee is to provide advice and assist with the development, management and enhancement of QIC Real Estate’s ESG strategy, 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 QIC Real Estate’s ESG strategy, objectives and commitments is the key pillar of the Committee’s remit, as well as regular monitoring of our performance against key ESG targets. The Committee is chaired by QIC Real Estate’s Managing Director and includes senior leader membership from across the business.

 

Governance of climate-related risks

QIC Real Estate manages risk in accordance with the QIC Board’s Risk Appetite Statement and Risk Management Framework, including the Enterprise Risk Management Policy. The risk management process is consistent with International Standard ISO 31000: Risk Management. Our Risk Management Framework includes an enterprise-wide methodology for rating risks and provides for assessment of business risks using the consequence and likelihood tables incorporated into the Risk Rating Procedure included in the Board’s Risk Appetite Statement.

ESG related risks, including climate-related risks, are reported to QIC Real Estate’s Sustainability Committee whose membership includes a senior member of QIC’s Risk Management Team (Head of Private Markets Risk). ESG related risks specifically within investment decisions are also reported to and considered by the Trustee Governance Committee whose membership includes QIC’s Chief Risk Officer.

Risks assessed as above appetite are included in regular reporting to QIC’s Risk Committee.

Asset level climate risks are managed through QIC Real Estate’s WHS&E management system, within which a risk-based approach is used to set the frequency of risk review. Risks with a residual risk rating of ‘medium’ or above are reviewed at least annually to promote a focus on continual improvement and risk mitigation efforts.

The following employees have direct responsibility for assessing and managing climate-related risks and opportunities within QIC Real Estate:

General Manager, Sustainability

Responsible for the establishment and delivery of Real Estate’s ESG strategy, which includes the assessment and management of climate-related risks and opportunities.

Environment Manager

Responsible for supporting the business to manage climate-related risk and deliver the long and short-term objectives within the ESG strategy’s Climate Change strategic focus area.

Asset Operations Managers

Responsible for ensuring climate-related risks are assessed and mitigated at the asset level.

These employees are standing invitees to or report to various governance committees, including QIC Real Estate’s Sustainability Committee and the Trustee Governance Committee.

Ethics and integrity

At QIC, we believe it is the responsibility of all employees 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 employees 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.

QIC's Code of Conduct and Ethics

Employee conduct

We require ongoing compliance with all laws and legal requirements relating to bribery, corruption, money laundering, fraud or similar activities. This includes our retail and business partners.

QIC employees are required to undertake training on anti-corruption policies and procedures as part of the mandatory 'Anti-Bribery and Corruption' annual online training.

Report contact

To find out more about environmental, social and governance (ESG) in QIC Real Estate, contact your Fund or Portfolio Manager, Client Services representative or:

Melissa Schulz
General Manager, Sustainability - Real Estate

Send an email

Tags
ESG 2023