Through our Responsible Ownership approach, we aim to actively drive change as asset owners by engaging with the companies we invest in.
By identifying and managing a company’s environmental, social and governance (ESG) factors, we can help companies find new opportunities, steer capital towards more attractive areas, and manage long-term investment risks (like climate change).
We exert influence on companies through share voting, engagement, and advocacy.
“We believe we can enhance the long-term performance of the companies we invest in, to ultimately deliver better outcomes for our members”
Voting shares – influencing companies to make better decisions
As an investor in listed companies, we receive voting rights as a shareholder. Exercising our voting rights is integral to our role as an active owner and is an effective way to publicly express our views on what a company is doing right and what it needs to improve.
- When voting on resolutions for Australian listed companies – we receive recommendations and advice from the Australian Council of Superannuation Investors (ACSI).
- When voting on resolutions for international listed companies – we receive recommendations from CGI Glass Lewis and a number of our investment managers vote directly.
|Shares voted||# meetings||# resolutions voted on||Voting results|
|Australian shares||278||1,860||14% of votes against management|
|International shares||2,425||28,614||6% of votes against management|
Issues we voted on included: board accountability and structure, executive remuneration, diversity, environmental and social shareholder resolutions.
Engagement – working with companies for better ESG results
When engaging on ESG themes directly with companies or indirectly via fund managers, we pay close attention to issues and opportunities that can impact the long-term sustainability of our investments. These themes include but are not limited to climate change, worker safety, diversity and culture.
We may escalate our engagement by voting against remuneration reports, a specific director or supporting a shareholder proposal (for example). If we do not see improvement in a company’s business model or there are potentially stranded assets (assets that won’t meet a viable economic return), we may divest our holdings.
We engage directly with Australian companies, through our fund managers, partnering with ACSI and collaborative groups (e.g. Climate Action 100+). When engaging with international listed companies, we partner with Hermes EOS and fund managers.
|Company engagementnt||# companies engaged||# meetings / issues|
Australian shares - direct
Australian shares - collaborative: ACSI
International shares - collaborative: Hermes Eos
Themes and issues our engagement focused on included: Executive remuneration, climate risk, workplace management (COVID), supply chain management, conduct and culture, board composition, public disclosure, health & safety, diversity, governance & accountability, social licence to operate.
Advocacy – leading and supporting on sustainable outcomes
We collaborate formally and informally with other super funds, institutions and global initiatives to support sustainability for the industry and economy. This includes:
- Signatory to the UN-backed Principles of Responsible Investment (PRI). The PRI is designed to encourage and assist investors to integrate ESG considerations into their investment processes.
- Partnering with:
- The Australian Council of Superannuation Investors (ACSI) – a strong, collective voice on ESG issues in Australia.
- Federated Hermes Eos – supports us to be a more active owner of our international assets through dialogue and engagement.
- An active member of the Investor Group on Climate Change – raising the awareness of the impact of climate change on the investment industry.
- A member of the reinforcing our commitment to the global 2030 – to address global challenges in areas like poverty, inequality, climate change, environmental degradation, peace and justice.
- Joining global investors as an inaugural signatory to the Tobacco Free Finance Pledge
- We are a lead investor for Australian companies focussing on reducing emissions and improving governance on climate risks
- We are a signatory to the Australian Asset Owner Stewardship Code, highlighting our commitment as active owners
- Workforce Disclosure Initiative: we encourage companies in Australia and globally to improve disclosure on workforce indicators in their operations and supply chains.
- and why we're "recognised as a leader in responsible investing".