Environmental, Social and Governance

ESG integration refers to the way we integrate ESG considerations when deciding which assets and companies to invest in and assessing their investment value. Our ESG integration approach varies by asset class and the characteristics of our investment, including whether we’re investing directly or through external managers.

As an active investor we exercise the rights and responsibilities of being a large shareholder. Our objective is to effectively communicate our investment interests to companies in a way that is consistent with maximising long-term value for members. 

AustralianSuper predominately seeks to influence listed companies through our engagement, voting activities and select involvement in class actions.

Company engagement

We meet with the chairs and board members of ASX-listed companies (individually or via investor networks) on ESG issues that we believe can impact long-term value.

Engagement provides us with an opportunity to encourage management of ESG issues that we believe can impact members' investment returns.

Our engagement process encompasses three key perspectives:

• Relationship building: helping companies understand the importance of ESG factors on an ongoing basis.
• Themes-based engagement: focusing on ESG themes that our ESG program has identified as a priority.
• Company specific issues engagement: seeking resolution of specific ESG concerns or engaging on a particular voting matter.

AustralianSuper’s engagement program includes:

• Engaging with Australian listed companies directly and via the Australian Council of Superannuation Investors (ACSI).
• Engaging with international listed companies primarily via an external engagement provider.
• Working with other investors through investor networks, such as Climate Action 100+ and Investors Against Slavery and Trafficking Asia Pacific.

We also periodically meet with the boards, management and investment managers of our unlisted assets.

Share voting

Voting on resolutions at general meetings is a key right and responsibility for shareholders. It presents an opportunity for us to communicate our view on how companies are creating long-term investment value for members.

We vote on company and shareholder resolutions for Australian and international listed companies. Every year, we vote on resolutions on issues such as director elections, remuneration plans, climate change and mergers and acquisitions.

You can view our voting records online and learn more about our approach to voting via the Share Voting Approach document below. This document includes our principles on voting on director elections, board accountability, board gender diversity and executive remuneration.

AUSTRALIANSUPER’S SHARE VOTING APPROACH (PDF) ESG and stewardship policy (PDF)

Share voting records

Class actions

Class actions are a way that shareholders, as a collective group, can claim for losses against a company where a reasonable case can be made that the loss occurred due to breaches of corporate laws/regulations relating to the company’s conduct or market disclosures.

AustralianSuper uses class actions in members’ best financial interests as a:

• Last resort governance mechanism;
• Cost-effective way to recover member losses caused by a company’s conduct or market disclosures; and
• Mechanism to improve standards of company practice in the market.

If the class action is successful any proceeds, after costs, are apportioned back to the investment options that held the investment.

Factors we consider when deciding if we will participate in Australian class actions as a class member include whether:

• It has been determined that there is a genuine allegation of a breach of law;
• This breach resulted in a financial loss for the Fund;
• There is a reliable and reasonable assessment that the costs associated with the litigation are low (and reasonable); and
• It has been assessed that there are no significant reputational risks to AustralianSuper.

For Member Direct, the Fund is not able to accommodate individual participation in class actions as holdings are indirectly held on members’ behalf by AustralianSuper. 

Proceeds after costs, from successful actions are apportioned back to the relevant investment options to offset some of the costs of the option. They do not go back to individual members.

We understand that members have diverse values, preferences and attitudes when it comes to investing. To help understand what’s important to members we undertake member surveys. We consider this research in the investment options we offer.

We have a range of investment options for members to choose from, including the Socially Aware option.

Your investment options – find out more 

We are a member of the Australian Council of Superannuation Investors (ACSI), which engages with companies and policymakers on ESG issues on behalf of its superannuation fund members. We participate in a range of ACSI working groups and may also consider ACSI’s proxy voting advice.

We’ve been a signatory to the Principles for Responsible Investment (PRI) since 2007. PRI has developed six global principles to help investors integrate ESG factors into investment practices and provides guidance on key ESG challenges.

The Responsible Investment Association Australasia’s mission is to promote, advocate for and support approaches to responsible investment that align capital with achieving a healthy society, environment and economy¹.

• Climate Action 100+: We are a founding member of Climate Action 100+, an investor engagement initiative on climate change seeking emissions reductions from the world's largest carbon emitters².
• Investor Group on Climate Change (IGCC): a network of Australian and New Zealand institutional investors focused on the impact of climate change on investments.
• Institutional Investor Group on Climate Change (IIGCC): a network of European institutional investors focused on the impact of climate change on investments.  
• Sustainable Development Investments Asset Owners Platform (SDI AOP): We jointly established the SDI-AOP, an asset owner-led platform that supports investors in identifying Sustainable Development Investments (SDIs) which the platform categorises based on their level of revenue aligned to the SDGs.
• Investors Against Slavery and Trafficking Asia Pacific (IAST APAC): We are a founding member, Steering Committee member and current co-chair of IAST APAC. The initiative seeks to engage with companies to promote effective action in finding, fixing and preventing modern slavery in their operations and supply chains.
• International Corporate Governance Network (ICGN): We are a member of ICGN and endorse its Global Stewardship Principles, which set out ICGN’s view of current best practices in investor stewardship obligations, policies and processes.