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HESTA Super Fund

PRI reporting framework 2020

You are in Direct - Listed Equity Active Ownership » Overview

Overview

LEA 01. Description of approach to engagement

New selection options have been added to this indicator. Please review your prefilled responses carefully.

01.1. Indicate whether your organisation has an active ownership policy (includes engagement and/or voting).

01.2. Attach or provide a URL to your active ownership policy.

01.3. Indicate what your active engagement policy covers:

General approach to Active Ownership

Engagement

Voting

01.4. Do you outsource any of your active ownership activities to service providers?

01.5. Where active ownership activities are conducted by service providers, indicate whether your active ownership policy covers any of the following:

01.6. Additional information [optional]

Across all service providers, engagements are largely proactive (planned) to focus on priority companies and priority ESG issues and aim to achieve specified behaviour change objectives. All service providers measure progress towards and achievement of these behaviour change objectives. There are also instances where engagement may be reactive to address ESG issues that have arisen during the reporting period.

In relation to planned engagements, HESTA contributes annually to the development and/or review of the Hermes EOS, ACSI and Regnan Engagement Plans. We also regularly review each service provider's engagement activities and the success of these activities.

To assist with our review, HESTA has developed detailed Engagement Objectives and Measures, which outline our expectations in relation to the planning, delivery and outcome of engagement services, and the way in which we will assess and measure whether these expectations have been met. Our Objectives and Measures include:

Company Engagement Planning

Objectives

1. To identify companies that most need to improve their performance and/or disclosure in relation to key ESG issues.

2. To identify priority ESG issues.

Measures

* Develop a robust process to identify and prioritise ESG issues and/or companies with which to engage.

* Develop or maintain an Engagement Plan which (1.) Identifies priority companies with which to engage, (2.) Identifies the key ESG issues relevant to each company, and (3.) outlines behaviour change objectives and measurable targets for each company to be achieved over a specified timeframe.

* Consult HESTA on the Engagement Plan annually.

* Develop and implement a process to determine which ESG issues or company behaviours that arise during the period warrant engagement (i.e. reactive engagements).

Company Engagement Activities & Outcomes

Objectives

1. To improve ESG performance and/or disclosure of priority companies.

Measures

* Engage with a minimum number of priority companies in the specified time period (determined for each service provider).

* Demonstrate progress on a reasonable number of the measurable targets for each behaviour change objectives for each priority companies engaged with during the specified time period (determined for each service provider).

All engagement with companies occurs via face-to-face meetings, teleconferences and written correspondence, most often at the company Chairman or Director level.

From time to time, HESTA internal staff participate in engagements arranged by our engagement service providers or by our external investment managers with companies on specific ESG issues. From time to time, we also participate in collaborative engagements though industry organisations of which we are a member including IGCC.


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