Responsible investment

We consider a range of factors, including company financials, qualitative data, ESG and other issues when assessing the investment value and selection, retention and realisation of applicable investments.

Integration refers to the consideration of ESG factors for certain assets during due diligence, which precedes the decision to invest, and during ownership when an asset’s value is assessed. Considerations may include how certain investments are currently managing ESG issues relevant to them and their sector, their disclosures, and their approach to stakeholder management.

Where investments are made by external investment managers, any ESG integration activities would be undertaken by the external manager using their ESG approach. When we initially appoint an external investment manager, we ask them about their approach to ESG considerations. We also ask on an annual basis as part of our operational due diligence processes

Our ownership rights and stewardship activities vary depending on the asset class and our level of investment.

For certain unlisted assets our stewardship activities include meeting with boards, management, and investment managers.

For listed companies our stewardship activities include engagement with certain companies, voting activities and select involvement in class actions.

Company engagement:

We engage with the boards and company management of certain ASX listed companies (directly or indirectly via investor networks or engagement service providers) to seek effective management of ESG issues that we believe can impact investment value.

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: raising 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 directly and indirectly 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.
• Engaging with external investment managers who manage investments on our behalf.

Share voting

Voting on resolutions at general meetings is a key ownership right and responsibility of company shareholders. It presents an opportunity to express our views on company matters that can impact investment value for members.

We vote on company and shareholder resolutions for Australian and international listed companies. We vote on company resolutions on matters such as director elections, remuneration plans, capital structure, and shareholder resolutions on a range of matters.

We retain voting rights for Australian and international listed companies held in our internally and externally managed portfolios.

Shares within the voting coverage universe may be voted directly or according to the voting approach for different holding types as outlined in our Share Voting Approach.

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 stewardship activity;
• Cost-effective way to recover member losses caused by a company’s conduct or market disclosures; and
• Mechanism to improve general corporate governance standards in the market.

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.

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.

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.

Find out more about our stewardship activities:

Stewardship Statement - pdf

Share Voting Approach - pdf

Voting records

We believe it's important that the operation of the financial system and regulatory policy is aligned with the interests of long-term investment to help achieve the best investment outcomes for members.

Click here to see our recent submissions.