ACSI was created by industry superannuation funds in 2001 to provide them with clear, evidence-based research on corporate governance issues and mutualise the costs. At the time, the collapse of HIH and One-Tel was shining a spotlight on the pitfalls of poor governance practices, and investors bore the costs.
Membership of the fledgling group expanded as other funds saw the value in its collaborative approach. So too did the scope of ACSI’s work.
While many superannuation funds used to allow fund managers to vote their shares, recognition grew that the voting rights attached to share ownership had value and should be exercised. ACSI began to offer a proxy voting recommendation service.
In 2003, ACSI issued its first Governance Guidelines to articulate members’ expectations for governance oversight at listed Australian companies. The Guidelines have been updated every two years since.
These expectations also began to be communicated in person. As fiduciary investors, ACSI members must enhance the retirement savings of Australian workers they manage, so, as governance and sustainability risks and opportunities have a material impact on investment outcomes, ACSI engaged directly with companies to make our members’ views clear. As time went on, companies sought engagement with ACSI to hear the views of our members, which then collectively owned an average 10% of every ASX 200 company.
In 2006, ACSI coordinated an international campaign to improve shareholder rights at News Corporation. Six ACSI members and six UK, Dutch and US pension funds took legal action against News Corporation’s ‘poison pill’ and won. ACSI was honored for its efforts with an award by the International Corporate Governance Network and the message resounded – by working collaboratively, institutional investors can make change for the better.
ACSI has long taken a leadership role on climate change, engaging with companies and enacting policies promoting investor votes on climate plans and indicating votes could be recommended against directors for ongoing failure to act on climate risk. Our policy advocacy was aimed at mandatory company disclosure of climate risk management, which was federally legislated in 2025.
Our longitudinal research into board composition, CEO pay and sustainability reporting has helped our members monitor listed companies and track whether reality matched lip service.
In recent years, ACSI led investor actions in response to a serious of corporate scandals. These included Rio Tinto’s destruction of 46,000-year-old caves at Juukan Gorge which highlighted the importance of strengthening cultural heritage practices and partnerships with First Nations people. ACSI and its members established the cultural heritage and risk management working group to broaden our understanding of these complex issues and continues to engage intensively with companies where this is a material risk.
Troves of research have shown board gender diversity strengthens decision-making and enhances board effectiveness. But in 2009, women held just 8.9% of listed company directorships and in 2015, when ACSI started actively campaigning on this issue, that figure was at 21.7%. By promoting gender diversity across corporate Australia through policy work, engagement and voting recommendations, ACSI and its members contributed greatly to the increase in female directors, who, in 2024 occupied 38% of listed board seats.
We have also undertaken collaborative research with key partners to elevate important ESG issues including with the Australian Institute of Company Directors (AICD) on corporate culture and climate reporting and the Australian Human Rights Commission (AHRC) about sexual harassment.
Today, ACSI is Australia’s leading voice on governance and sustainability issues and our members manage the retirement savings of millions of Australians. Working collectively for more than two decades, through a global financial crisis, a pandemic, company collapses and executive pay outrages, ACSI continues to effect changes in listed companies and in the regulatory environment, helping to ensure those Australians know their savings are in safe hands.