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Local Government Superannuation Scheme

PRI reporting framework 2017

You are in Direct - Listed Equity Active Ownership » Engagement » Outputs and outcomes

Outputs and outcomes

LEA 11. Number of companies engaged with, intensity of engagement and effort

11.1. Indicate the amount of your listed equities portfolio with which your organisation engaged during the reporting year.

Number of companies engaged

(avoid double counting, see explanatory notes)

Proportion (to the nearest 5%)
Specify the basis on which this percentage is calculated

Individual / Internal staff engagements

1 Number of companies engaged
0 Proportion (to the nearest 5%)

Specify the basis on which this percentage is calculated

Collaborative engagements

17
0 Proportion (to the nearest 5%)

Specify the basis on which this percentage is calculated

Service provider engagements

135
5 Proportion (to the nearest 5%)

Specify the basis on which this percentage is calculated

11.2. Indicate the proportion of engagements that involved multiple, substantive and detailed discussions or interactions with a company during the reporting year relating to ESG issue.

Type of engagement

% Comprehensive engagements

 

 

Individual / Internal staff engagements

 

 

Collaborative engagements

 

 

Service provider engagements

11.3. Indicate the percentage of your collaborative engagements for which you were a leading organisation during the reporting year.

Type of engagement

% Leading role

 

 

Collaborative engagements

11.4. Indicate the percentage of your service provider engagements that you were highly involved in during the reporting year.

Type of engagement

% High involvement

 

 

Service provider engagements

11.5. Additional information. [Optional]


LEA 12. Engagement methods

12.1. Indicate which of the following your engagement involved.

12.2. Additional information. [Optional]


LEA 13. Engagements on E, S and/or G issues (Not Applicable)


LEA 14. Companies changing practices / behaviour following engagement

14.1. Indicate whether you track the number of cases during the reporting year where a company changed its practices, or made a formal commitment to do so, following your organisation’s and/or your service provider's engagement activities.

14.2. Indicate the number of companies that changed or committed to change in the reporting year following your organisation’s and/or your service provider's engagement activities.

Number of company changes or commitments to change

Individual / Internal staff engagements

1

Collaborative engagements

5

Service provider engagements

52

14.3. Additional information [Optional].

Service Provider Engagements: 52 representing

Board Gender Diversity=19

Corporate Governance= 9

Labour Human Rights=5

Carbon Asset Risk=4

Sustainability Reporting=15

In Febuary 2016, ACSI created a list of priority engagement companies with specifically defined concerns and objectives for each company identified through priority themes (e.g. climate change), which is reviewed annually.  The above outcomes represent the number of companies that changed or made a formal commitment to change from our priority engagement list.


LEA 15. Examples of ESG engagements

15.1. Provide examples of the engagements that your organisation or your service provider carried out during the reporting year.

Topic or ESG issue
          Board Gender Diversity
        
Conducted by
Objectives

Increase the representation of women on ASX200 company boards to 30% by 2017.

Scope and Process

ACSI wrote to all ASX200 companies with either no women or only one woman on the board.  This written correspondence was followed up with a series of meetings with target company boards.

Outcomes

As at 1 February 2017:

- Engaged with 23 companies on the issue

- 14 target companies appointed the first woman to their board during 2016

- A further 5 companies have made direct commitments to address the issue in the next 12 months.

Topic or ESG issue
          Corporate Governance
        
Conducted by
Objectives

Improve specific company practices in governance of

a) Executive remuneration

b) Directors and board composition and

c) Capital raising practices

Scope and Process

ACSI engaged with 14 priority companies in the ASX200 on one or more governance issues.

Outcomes

ACSI saw 9 out of the 14 priority companies improve their company governance, or make commitments to improve, as a result of engagement on a range of corporate governance issues.

Engagement with 3 target companies was escalated with ACSI recommending its members vote against remuneration resolutions and/or the re-election of directors following engagement.

Topic or ESG issue
          Carbon Asset Risk
        
Conducted by
Objectives

Understanding and disclosure of how large companies incorporate carbon asset risk 

Scope and Process

ACSI engaged with four large energy companies on disclosure of climate change and carbon asset risks.

Outcomes

A topic of discussion with many company boards, the 4 specific target companies all improved or committed to improve following engagement with ACSI. One company improved its already leading reporting, another provided its very first climate scenario as part of its 2016 annual report.

Topic or ESG issue
          Labour and Human Rights Policies
        
Conducted by
Objectives

Enhanced company disclosure of Labour and Human Rights policies.

Scope and Process

ACSI engaged with 8 priority companies identified via two commissioned research reports for high exposure to labour and human rights risks.

Outcomes

A total of 5 companies either made or committed to making significant improvements to their management and disclosure of labour and human rights risks, and ethical sourcing disclosures.

Topic or ESG issue
          Sustainability Reporting
        
Conducted by
Objectives

Improved annual reporting of ESG risks.

Scope and Process

The performance of the full ASX 200 in this area was identified through 
ACSI's research. Letters were written to each company detailing areas that require improvement and providing guidance on disclosure frameworks.

Outcomes

ACSI engaged with 15 companies, following receipt of ACSI's letters, regarding their sustainability disclosures. Eight have indicated they are looking to improve their disclosure going forward.

Topic or ESG issue
          Credit Card usage for gambling
        
Conducted by
Objectives

To increase awareness and ban credit card usage by banking institutions for gambling.

Scope and Process

Letter sent to major Australian banking institutions in relation to banning use of credit cards as a line of credit for gambling.

Outcomes

Response from Australian Bankers Association regarding support for a legislative ban on credit for gambling.

Internal discussions progressing at the banks

Further follow up meetings planned with the banks with some positive signs for appetite to respond.

Topic or ESG issue
          Labour and human rights in emerging markets.
        
Conducted by
Objectives

Increase action by company to address human rights abuses in emerging markets.

Scope and Process

Engaged directly with company regarding new measures in place and going forward to rectify past issues.

Outcomes

Company responded that agreements with unions had been signed, rehiring of workers had occurred in one of the emerging markets countries.

15.2. Additional information. [Optional]


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