As a Directorate of the ACT Government (Sovereign Government Body Politic) responsible for policy, legislation and regulations on behalf of the Australian Capital Territory, Treasury does not undertake direct company engagement or directly contract for the requirement of fund managers to engage with companies on specific ESG factors.
As a signatory to the PRI Treasury encourages fund managers to engage directly with companies on ESG risks. While Treasury does not contract for the requirement to enage on specific ESG issues it is important to note that the fund managers do actively engage with companies, industry bodies and relevant forums on ESG risks on a ongoing basis and provide reporting on behalf of all their clients. Over 90 per cent of the Treasury investments are managed by fund managers that are PRI signatories.
Engagement activity by the external fund managers over the 2018-19 financial year, through both direct company and industry body or forum engagement, encompassed a very broad range of ESG risks and issues including: Australia's Modern Slavery Act, supply chain management, human rights, ESG integration, executive remuneration, TCFD reporting, Occupational Health and Safety, climate change and environmental risk management, sustainability, UN Global Compact and Australia's Banking Royal Commission.