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 which 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 directly with the chairs and board members of ASX-listed companies on ESG issues that we believe can impact long-term value.

Direct engagement is important as it provides the opportunity for us to influence the make-up of company boards and encourage positive behaviour on 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 strategic 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).
• Our subscription to EOS at Federated Hermes, which grants us access to insights and opportunities regarding engagements with over 1,000 international companies annually.
• Working collaboratively with other like-minded investors through collaborative initiatives, such as Climate Action 100+ and Investors Against Slavery and Trafficking Asia Pacific.

AustralianSuper also periodically meets 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 a significant opportunity for us to communicate our view on how companies are creating long-term investment value for members.

AustralianSuper votes 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.

Each individual resolution is considered on its own merits through the members’ best financial interest lens. We may consider advice from proxy advisors, but ultimately make our own decisions based on what we believe will create or enhance long-term company value on behalf of members.

We vote on thousands of resolutions each year. 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