Describe what ESG factors and/or regulatory/policy issues have informed your decisions to engage with policy makers and industry bodies. Provide examples.
A range of ESG factors have informed our engagement with policy makers and industry bodies. Most typically we engage where the underlying issues are systemic and where either the current policy environment may deter actions to address ESG issues or conversely where policy signals may promote action, for instance with respect to disclosure. In recent years, climate change-related issues have been the most prominent.
In some cases, this is done in collaboration with other ESG/RI groups such as the Responsible Investment Association Australasia and the Investor Group on Climate Change (Australia).
During the last 12 months, we provided a submission to the Australian Prudential Regulatory Authority’s (APRA) draft standard on remuneration. We noted a number of areas where further clarity would assist in effective implementation and highlighted potential risks from requirements for greater components of at risk remuneration to be linked to non-financial indicators. These comments were designed to identify areas for increased vigilance rather than opposing the inclusion of non-financial measures per se.