Superannuation
JANA dragged into Rest legal stoush

JANA Investment Advisers may be forced to hand over key documents as part of Rest's ongoing legal battle with member Mark McVeigh.

Final discovery orders were consented to by both Rest and McVeigh in late December last year.

Documents created by the investment committee or general manager of investments that evidence consideration of JANA building a capability to stress test portfolios for climate change risk in 2019 will have to be handed over.

Stress testing, assessing the potential impact of scenarios on a portfolio, is just one element of the information McVeigh wants his super fund to provide around its approach to climate change.

All drafts and versions of Rest's climate change policy will be on the table.

Rest's general manager investments Brendan Casey was named in the discovery orders along with chief investment officer George Zielinski.

The super fund will have to provide minutes from meetings and agendas to prove the board and investment committee considered dealing with the climate change policy.

Rest will also be asked to prove it received advice and considered that advice in relation to changing policies in line with the Principles for Responsible Investment.

Climate change risk management appears to be a key element in the cast, with the court documents stating that Rest should provide: "Agendas, minutes of meetings and all documents placed before the Audit Risk Compliance Committee and board evidencing consideration of any amendments to the RMS relating to climate change."

McVeigh's legal team also want to see: "All board documents (agendas, minutes of meetings, documents placed before the Board) evidencing consideration of the climate change risk detailed at 4 and 5 of the Climate Change Policy and the maximum level of that risk that the Board is willing to operate within for material risks from 1 January 2017."

JANA declined to comment when contacted by Financial Standard.

Rest re-iterated its statement on the case, saying: "The specific climate-related issues we engage with our investment managers on include carbon footprinting (in equities), stranded assets, climate-related scenario analysis and exposure to lower-carbon assets.

"Rest also works with our investment managers, investment adviser and the Australian Council of Superannuation Investors to engage with the companies and entities we invest in, and to improve disclosure of climate change risks and opportunities."

Read more: Climate Change PolicyJANA Investment AdvisersMark McVeighAudit Risk Compliance CommitteeBrendan CaseyGeorge Zielinski
Link to something SKQM3aFN