Stewardship

Voting at company meetings is one way we can exercise our shareholder rights. We rely on external analysis and recommendations to support us in casting votes.

For ASX 300 companies and directly-held actively-managed global investments, our voting is guided by the Australian Council of Super Investors (ACSI) Corporate Governance Guidelines which are developed in consultation with ACSI members, including us. We apply criteria approved by the Investment Committee to identify meetings / proposals for internal review. We also consider insights from managers, service providers, other stakeholders (where applicable), and engagement to inform our vote decisions. 

Purposeful engagement is how we use dialogue and influence with company boards, management, and other stakeholders to better understand Material ESG risks and opportunities, and support long-term value creation for our members.

We engage with a broad range of stakeholders, including investment managers, listed companies and directly-held unlisted companies. Engagement can be undertaken directly (both on a strategic and ad hoc basis), through participation with other investors, or through external service providers.

Advocacy is a key pillar of our responsible investment approach. It allows us to contribute to the development of public policies, regulations and standards needed to reduce systemic risks and their financial impacts.

As an investor, we focus on financially Material¹ environmental, social and governance (ESG) risks and opportunities to help protect our members’ long-term returns. However, the financial system is connected to broader social and environmental systems, and our investments are exposed to the financial consequences of economy-wide environmental and social impacts.

For example, extreme weather events caused by climate change can impact the companies and assets we invest in through disrupted supply chains, increased operating costs and business interruptions. The industries our members work in can also be impacted through project disruptions, increased insurance costs and impacts to workplace health and safety.

These impacts cannot be avoided by simply diversifying our portfolio, nor can we respond to these on our own. The response requires public policy and regulatory action, driven by governments and global organisations such as the United Nations.