media release
11 September 2024
HESTA calls on ASX300 to take more action on climate change, nature loss, gender equality and decent work
HESTA is urging the country’s biggest businesses to intensify their efforts on climate change, nature loss, gender equality and decent work to help build the retirement savings of the Fund’s more than one million members.
In its fifth annual letter to ASX300 chairs and CEOs, the $87 billion profit-for-member super fund has outlined the issues on which it will engage with companies in the 2024-25 financial year. HESTA is encouraging companies to demonstrate foresight and ambition by putting appropriate plans and targets in place to address risk and create long-term value.
HESTA CEO Debby Blakey said she valued deeply the ongoing engagement investors have had with companies, which has helped protect and enhance long-term investment value.
“Through constructive engagement with companies, investors have encouraged big emitters to act faster on climate and significantly improved gender diversity on boards and executive teams across the ASX,” Ms Blakey said.
“But more needs to be done. That’s why HESTA is encouraging companies to act now on climate change, nature loss, gender equality and decent work, supporting us to deliver strong, long-term investment performance.”
Ms Blakey said these four themes remain material issues as they present financial risks for companies, shareholders and the global economy.
“This year our engagement on climate action will focus on ensuring boards have the right mix of skills and capabilities needed to transition their business to a low-carbon future. We’re also looking for credible climate plans, especially from energy, resources and industrial companies, that bring forward investment in new technologies,” she said.
“On gender equality, this year we’ll be monitoring gender pay gaps closely and asking companies to set gender balance targets – at least 40 per cent women – not only at the board and executive level, but right across their organisation.
“Nature loss and decent work are emerging areas of concern for investors and we’re encouraging the ASX300 to prioritise these issues given the potential negative impact to long-term financial performance.”
Ms Blakey said it’s been encouraging to see progress made on gender equality and climate change over the years. In March 2023, 75 per cent of the ASX200 had committed to or were reporting against the Task Force on Climate-related Financial Disclosures framework, up from 66 per cent the year before.[1]
"Even before we started writing to companies five years ago, HESTA was voting against all-male boards and we continue to do so. Now just 30 more appointments of female directors are needed to hit gender balance in Australia’s top 200 listed companies,[2]” she said.
“More than one million Australians trust HESTA to look after their hard-earned retirement savings and expect us to do everything we can to protect and enhance the value of their investments.”
HESTA’s active ownership priorities for FY 2024-25:
1. Balancing climate goals and practical steps
2. Connecting nature and climate
3. Accelerating gender equality
4. Promoting decent work
[1] https://acsi.org.au/wp-content/uploads/2023/08/Promises-Pathways-Performance-Climate-reporting-in-the-ASX200-August-2023.pdf
[2] https://acsi.org.au/media-releases/asx200-just-30-women-away-from-equality-target/
[3] https://www.pwc.com/gx/en/news-room/press-releases/2023/pwcboosts-global-nature-and-biodiversity-capabilities.html
[4] 40 per cent identifying as women; 40 per cent identifying as men; 20 per cent identifying as any gender.
[5] Bankwest Curtin Economics Centre, Dimensions and Prevalence of Decent Work in Australia, 2024.
Ends.