When it comes to investing in company shares, we believe that active ownership – which involves company engagement and voting at company meetings – is critical to the governance of investments over the long-term. It can also positively influence company behaviour and performance, supporting the achievement of shareholder value.
Engagement involves meeting with representatives of an investee company, usually members of the board or executive, in order to advocate for change. During 2021–22, Hostplus engaged with 791 companies either directly or through our specialist providers, the Australian Council of Superannuation Investors (ACSI) and Hermes Equity Ownership Services.
Voting on resolutions at shareholder meetings provides us with the opportunity to express our views to that company’s management team. As a shareholder in many top-listed companies in Australia and overseas we voted on more than 35,000 proposals at more than 2,600 company meetings during the financial year ended 30 June 2022. Our voting records can be found here.
Engagement drives change. Recent outcomes of company engagement include:
- 20 target companies set net zero 2050 goals (with 70% of ASX200 market capitalisation now covered by net zero 2050 commitments)
- 16 target companies integrated climate change into executive remuneration
- 20 companies implemented positive changes to remuneration plans
- 4 companies made progress on cultural heritage frameworks
- 14 companies improved safety reporting, including fatality disclosures.
