Our active role

Engagement

We believe active company engagement is critical to the advancement and promotion of responsible investment considerations across the broader corporate and financial sectors.

We have an intimate knowledge of our investments and regularly engage with businesses either directly, or through the Australian Council of Superannuation Investors (ACSI).

In our activity we seek to encourage positive change in corporate behavior. Typically, our activity is prioritised around pre-determined themes and objectives, which are reviewed on an annual basis. We also frequently engage with regulators, industry associations and the investment community to promote best practice responsible investment standards.

Proxy
Voting

We exercise our rights to vote on company resolutions within our listed equities portfolio to encourage responsible corporate behaviour and drive ESG initiatives that build shareholder value over the long term.

The IFM Investors Proxy and Engagement Committee (PEC) is responsible for the oversight of all our voting activity. The functions of the PEC are:

  • To approve the voting of all proxy votes put to shareholders of listed companies that are commonly held by two or more of the Funds;
  • To approve and monitor the engagement with Companies relating to ESG issues;
  • To establish and be responsible for a registry which contains all proxy voting approved by the PEC and other information the PEC deems necessary
  • To develop initiatives with the Executive Director, Responsible Investment relating to governance issues generally and help ensure that Companies are acting in a way that is consistent with IFM’s Corporate Governance Policy and Environmental, Social and Governance considerations.

The PEC process for voting, in order of priority, is:

  • In accordance with client directives;
  • In accordance with the voting recommendation of ACSI, unless the PEC determines a stance contrary to ACSI; and
  • Where there is no recommendation from ACSI, we will seek guidance and input from other advisors and make a final voting decision based on IFM’s own voting principles.