Describe how you select priority engagement topics to raise with companies and how you involve your clients in this process.
ACSI’s engagement program seeks to influence companies through constructive engagement with ASX300 boards about material ESG issues. For 2019, ACSI had six priority engagement themes; gender diversity, corporate governance, Banking and Aged Care Royal Commissions, conduct, climate change and workforce (LHR, safety, human capital management). This consisted of 150 companies in the ASX300 index. The issues are drawn from a range of sources, based on a significant amount of internal and external research, proxy voting outcomes and current issues. ACSI then further prioritises companies by taking into account the holdings of our members, focusing on the largest aggregate member holdings. For engagement, ACSI creates a list of priority engagement companies which is reviewed annually, with progress monitored and evaluated semi-annually.
Describe how you define the objectives and milestones of the engagements and how you involve your clients in this process.
ACSI annually creates a list of engagement priority companies with specifically defined concerns and objectives for each company. ACSI’s objectives are to achieve meaningful changes in company behaviour. ACSI also sets objectives for the proportion of all priority companies where objective are met: we aim for over 75% of all priority companies’ objectives to be met or partially resolved.
This process is overseen by a Member Council, in consultation with Management. ACSI members actively contribute and set the goals and direction that ACSI takes.