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Australian Ethical Investment Ltd.

PRI reporting framework 2019

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

Outputs and outcomes

LEA 09. Number of companies engaged with, intensity of engagement and effort

Indicate the proportion of companies from your listed equities portfolio with which your organisation engaged with during the reporting year.
We did not complete any engagements in the reporting year.

Number of companies engaged

(avoid double counting, see explanatory notes)

Proportion of companies engaged with, out of total listed equities portfolio

Individual / Internal staff engagements

29
9

Collaborative engagements

120
38

09.2. Indicate the proportion breakdown of engagements conducted within the reporting year by the number of interactions (including interactions made on your behalf)

No. of interactions with a company
% of engagements
One interaction
2 to 3 interactions
More than 3 interactions
Total
100%

09.3. 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

09.5. Additional information. [Optional]

We only partially track the number of engagements. ​The numbers and percentages above only include those key engagements described in our annual reporting to stakeholders. The proportion of companies engaged are calculated as a percentage of number of companies held as at 31 December 2017. Since some engagements were conducted with companies we do not invest in and not all engagements are reported in our annual reporting, the percentage shown is not be a meaningful indicator of  the frequency of engagement with companies we invest in.


LEA 10. Engagement methods

10.1. Indicate which of the following your engagement involved.

10.2. Additional information. [Optional]

The above responses relate to our engagements conducted independently, and does not take account of collaborative engagements.


LEA 11. Examples of ESG engagements

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

ESG Topic
Climate Change
Conducted by
Objectives

Climate action by energy companies is urgently needed because they contribute over a third of global emissions and because renewable energy technologies give them many opportunities to reduce both their own emissions and the emissions of other sectors like transportation.

Scope and Process

With nominal advocacy holdings of shares in Origin Energy and Santos we supported shareholder resolutions organised by Market Forces. The Origin resolutions called on the company to better explain how they are responding to climate change including transitioning to renewables, pursuing emissions reduction targets and reducing methane leaks. The Santos resolution focussed on better methane emissions management and disclosure.

We supported a shareholder resolution organised by the Australian Centre for Corporate Responsibility calling on BHP Billiton to show integrity in its lobbying on government climate policy. For many years the Minerals Council of Australia has obstructed sensible energy policy. As a key member of the Minerals Council, BHP gives both financial support and credibility to the Council. BHP should either use its influence to stop the obstructive approach of the Minerals Council, or resign its membership.

In December 2017 BHP reported on differences between industry group positions on climate policy and BHP’s own position. BHP left the World Coal Association (WCA). It committed to review its membership of the Minerals Council over 2018. In March the Minerals Council issued a position statement which acknowledges the need for energy policy to allow Australia to meet its emissions reduction commitments.

Outcomes
ESG Topic
Other

specify

          
        
Conducted by
Objectives

Live export causes great and unnecessary suffering to over 2 million animals shipped live from Australia each year, including 1.8 million sheep shipped to the Middle East in 2017 alone. We sought an end to the export of live animals for slaughter overseas.

Scope and Process

We sent one of our ethics analysts to work with Animals Australia and help with their court case challenging a live export permit granted by the Department of Agriculture.

We engaged with banks (who finance exporters), insurance companies (who insure live export stock), and a port logistics provider, asking them to reassess their exposure to the live export trade.

We spoke in the media and wrote to the Federal Minister for Agriculture calling for an end to the trade. We also promoted Animals Australia’s online petition on our social media.

Two companies we engaged with are stopping services to live exporters.

An end to live export is now supported by the Greens, Labor and a number of independently minded Liberal MPs. The Coalition government is resisting, including withholding support for a key animal welfare recommendation from its own expert. If implemented, this recommendation may on its own make the trade unviable. The Government suspended the licence of two live export companies.

Outcomes
ESG Topic
Human rights
Conducted by
Objectives

Improve protection of worker rights in the supply chains of Australian companies.

Scope and Process

Using a nominal advocacy shareholding, we supported a shareholder resolution for better human rights reporting by Woolworths, including how it is protecting workers in its supply chain in accordance with UN Guiding Principles on Business and Human Rights. The resolution was organised by the Australian Centre for Corporate Responsibility.

We signed the Investor Statement on the 5th anniversary of the Rana Plaza disaster. The Investor Statement calls for continuing action to make clothing factories safe for workers, to encourage ownership by local stakeholders and to improve government oversight.

We signed the Investor statement of concern on the increasing harassment and attacks on human rights defenders calling on companies to act to protect those protesting disregard for human rights including indigenous rights defenders in the Philippines.

In the lead up to its AGM, Woolworths gave commitments to do more to ensure that labour hire companies comply with labour and human rights standards; to help educate workers about their workplace rights; and to promote effective grievance mechanisms for workers to ensure that human rights violations are reported, investigated and remedied. Because of these positive moves the shareholder resolution was withdrawn.

Outcomes

11.2. Additional information. [Optional]


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