This report shows public data only. Is this your organisation? If so, login here to view your full report.

CBUS Superannuation Fund

PRI reporting framework 2020

Export Public Responses
Pdf-img

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 in your listed equities portfolio with which your organisation engaged 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

1
0

Collaborative engagements

0
0
Service-provider engagements
879
30

09.2. Indicate the 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%

09.4. Indicate the percentage of your service-provider engagements in which you had some involvement during the reporting year.

Type of engagement

% of engagements with some involvement
Service-provider engagements

09.5. Additional information. [Optional]


LEA 10. Engagement methods

10.1. Indicate which of the following your engagement involved.

(specify)

          Attending shareholder meetings
        

10.2. Additional information. [Optional]

The type of engagement depends on the issue and reason for engagement. The preference is always a face to face meeting or telephone  / video conference. Email correspondence may also form part of engagement.    


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

Hermes EOS pressed companies to set science-based targets, conduct climate-risk stress tests, and make enhanced disclosures. It has also asked companies to link executive pay to the achievement of climate change outcomes, and to ensure they do not lobby policymakers or regulators to hinder the achievement of the Paris Agreement goals. In 2019, Hermes continued to participate in collaborative investor initiative Climate Action 100+, which targets over 100 of the world’s largest corporate greenhouse gas emitters. The aim is to curb emissions, strengthen climate-related financial disclosures, and improve governance on climate change risk and opportunities. The ultimate goal is to help limit global warming to less than 2°C, consistent with the Paris Agreement. 

Scope and Process

Hermes EOS took an active role as lead or co-lead engager for 27 companies in this initiative, which has attracted over 370 investors with over $35 trillion under management. In 2019 EOS attended six annual shareholder meetings to promote action on the climate crisis – a mining company, an oil major, a utility, and three car manufacturers. Hermes EOS also helped to co-ordinate the work of the Institutional Investors Group on Climate Change’s shareholder resolutions sub-group, identifying companies that could be potential targets for climate change-related resolutions, and the utilities sector sub-group, formulating and co-ordinating engagement strategies for the sector.

 

Outcomes
ESG Topic
Human rights
Conducted by
Objectives


Hermes EOS engages on critical human rights issues including eradicating forced labour and child labour in supply chains. Many companies rely on global supply chains to access labour in low-cost regions, but the fragmented and opaque nature of these chains heightens the risk of human rights abuses. Traditional, announced audits may not uncover issues – more robust due diligence is needed. Hermes EOS engages with companies across five key areas: forced labour and modern slavery, child labour, living wages and purchasing practices, worker voice and gender-specific issues.
 

Scope and Process

Hermes EOS engaged with a Malaysian palm oil company over several years following NGO and media reports in 2012 of poor labour conditions at the company’s plantations in Liberia and its suppliers in Indonesia. 2013 saw further allegations of poor labour conditions in its supply chain and EOS urged it to provide clarity on how it was investigating and assessing the steps taken to avoid similar issues in the future. EOS continued to raise these concerns in further calls and correspondence over several years, during which the company appeared to be responding positively to consider improved disclosure and stakeholder outreach. During a call in 2017 the company committed to disclosing its migrant worker management process in its sustainability report – a significant improvement on transparency. In 2018 EOS asked the company to align its labour standards programme and move to industry best practices by reporting in line with the UN Guiding Principles on Business and Human Rights. EOS reiterated this request during calls in 2019 with the head of sustainability.

Outcomes
ESG Topic
Diversity
Conducted by
Objectives

Despite plenty of evidence that diversity improves company performance, progress has been slower than hoped for in many parts of the world. Hermes EOS seeks balanced boards at companies – composed of directors with technical skills aligned with the strategic needs and direction of the company and a diversity of perspectives. This may include across gender, age, ethnicity, nationality, background, skills and experience, to improve decision-making and avoid groupthink. Getting the board right is often the first step towards addressing social or environmental issues to which the company may be exposed, which is why it is a significant feature in EOS’s engagement. 

Scope and Process

Hermes EOS engaged with a Chinese technology company on board diversity. In the first quarter of 2019, EOS met the company’s senior legal counsel and wrote to the chair to call attention to the amended Hong Kong Corporate Governance Code of July 2018, which set higher expectations for the board nomination process and diversity. EOS made recommendations on how to specify talent search criteria to encourage fairer and non-discriminatory practices. It also asked the company to consider reflecting the customer base and business needs when selecting board directors, as a good portion of the company's gamers are women. EOS put its principles into action and recommended voting against a member of the nomination committee at the 2019 annual shareholder meeting. It communicated its voting recommendations and rationale to the company, ahead of the vote at a meeting in early May 2019. At the same meeting, EOS recommended further steps to speed up the transformation process.

Outcomes
ESG Topic
Climate Change
Conducted by
Objectives

ACSI seeks companies disclose reliable and sufficiently granular information for investors in line with the TCFD Framework that provides insights into how the company manages climate risks and how they are resilient under a low carbon economy. ACSI assesses companies against the following areas:

  • Climate transparency, governance & policy
  • Transition risk management and disclosure
  • Physical risk management and disclosure
  • Paris-aligned targets
  • Just transition
  • Industry associations
Scope and Process

ACSI’s focus is on 20 ASX300 companies from materials & building, energy, transport and insurance sectors.

Outcomes
ESG Topic
Labour practices and supply chain management
Conducted by
Objectives

Targets are bespoke to each company and are around improving their disclosure, governance, oversight and management of risks across the following areas:

  • wage fraud
  • supply chain and human rights
  • franchising
  • modern slavery

An example for one company would be that ‘ACSI is seeking to have the company report to a best practice standard on their labour hire suppliers’ performance’.

Scope and Process

ACSI focus is on 10 companies in the ASX300 who have a material exposure to human capital risks. This includes wage fraud, supply chain and human rights, franchising and modern slavery risks.

Outcomes
ESG Topic
Diversity
Conducted by
Objectives

ACSI’s extended its gender diversity campaign to the ASX300 with the aim to increase the representation of women on company boards to 30%. Objectives were to see women appointed to the board and/or a commitment or demonstration of how they plan to achieve 30%.

Scope and Process

ACSI targeted 81 ASX300 companies who have either zero or one women on their board, at the start of 2019. The engagement was conducted through a means of face-to-face meeting, teleconferences, formal letters and through proxy voting.

Outcomes
ESG Topic
Executive Remuneration
Conducted by
Objectives

Improve aspects of remuneration practices and structure. These improvements included improving pay-for-performance alignment, the cessation of retention plans, making hurdles more challenging, introducing executive and director minimum shareholding requirements.

 

 

Scope and Process

ACSI had 37 ASX300 companies as priority targets for remuneration issues. 

Outcomes
ESG Topic
Climate Change
Conducted by
Objectives

Climate Action 100+ is a five-year global investor initiative focusing on the world’s largest corporate greenhouse gas emitters to ensure they take necessary action on climate change. 

Scope and Process

The initiative has called for improved climate action with 161 global companies with significant potential to impact climate change through their operations, products and value chains. The focus is on getting companies to commit to strengthening disclosure, curbing emissions and improving governance. An engagement with Rio Tinto, co-led by Australian and European investors, saw the company release its first TCFD compliant report in February 2019.

Outcomes

11.2. Additional information. [Optional]


Top