Thank you Debby, and welcome again to the ACSI conference
I also acknowledge the traditional custodians of the lands we meet on today – the Gadigal people of the Eora Nation. I pay my respects to their Elders past and present, and extend that respect to all First Nations people here today.
I wanted to take this moment to acknowledge the significant contribution that Debby has made in the role of ACSI Director, and more recently as President. Debby has been an advocate for all that ACSI does and is rightly recognised as a leader in the material matters of sustainability and governance. She has ably led our board through a period of substantive challenge and change.
On a personal level, it has been a great privilege for me to work closely with Debby over recent years. I have benefitted from her keen strategic perspective and from her thoughtful guidance. Most importantly, she has consistently brought the voice of super fund members into every consideration. On behalf of the ACSI community I want to thank Debby for her significant contribution to ACSI’s success.
Of course, as we commence today, it’s important to note that we’re meeting at a time when the global environment feels increasingly uncertain.
Geopolitical tensions continue to rise, conflicts are intensifying, and the rules-based international system that has underpinned global markets for decades is under pressure.
Behind those headlines, of course, are profound human consequences for communities caught up in conflict, something we should never lose sight of.
For those of us responsible for long-term capital, times like this also highlight the importance of strong institutions, good governance and resilient markets – which play a significant role in the wellbeing of the beneficiaries we all serve.
Many super fund members are also watching these events and thinking about how their savings are invested in a complex and interconnected world.
When the world becomes more unpredictable, the importance of strong governance, transparency and responsible stewardship only increases.
As you’ve heard, ACSI turns 25 this year. While we been focused on delivering for our members, ACSI has also built a community that has grown in both size an impact.
Whether you’re from a super fund, an asset manager, a listed company, a regulator, a not-for-profit or academia, you’re part of this community because you recognise that sustainability and governance factors are material investment matters; and because forums like this help us examine how they shape markets and investment decisions.
Over 25 years, ACSI’s work has evolved into a comprehensive stewardship effort on behalf of our members and their beneficiaries. Through research, engagement with hundreds of listed companies each year, voting advice and public policy advocacy, we aim to ensure financially material governance and sustainability risks are properly managed in the companies Australians rely on for their retirement savings.
Much of this work happens quietly and over long periods of time. Improvements in areas like management of climate change, workplace safety, board accountability and executive pay have often taken years of engagement, careful research and collaboration between investors, companies and policymakers. These outcomes demonstrate what sustained, collective stewardship can achieve.
Many of you will know that ACSI was created by some visionary super funds to mutualise the cost of company engagement and proxy voting on governance issues. It was clear to them that without good governance, sustainable, long-term returns looked precarious.
But today, governance doesn’t often get the credit it deserves. Hearing some commentary, you’d think that poor company culture, all-male boards, terrible safety practices or misaligned executive pay has nothing to do with a company’s financial performance, or long-term viability.
It has become popular to call it ‘red tape’.
But peel back that phrase, and it’s clear that Australia’s capital markets are underpinned by governance settings promoting accountability, transparency and confidence – factors that are critically important to long term investors.
These settings support efficient capital allocation, help manage financial risks and opportunities, and reinforce trust between companies and their long-term owners. For those investing on behalf of millions of Australians saving for retirement, they are essential tools.
They enable investors to assess risk, engage constructively with companies, and support decisions that deliver sustainable value over time.
In the public debate, we sometimes hear governance characterised as an impediment to productivity, with some suggestions that weakening investor protections would encourage listings, reduce costs or promote growth.
We find no evidence that eroding core governance settings would deliver these outcomes. If anything, international and domestic experience suggests that strong governance supports resilient markets and long-term performance.
Governance is a real, if intangible, part of Australia’s economic infrastructure. It protects market integrity, supports long-term investment and results in better outcomes for companies, investors and the broader economy.
Today we’ll be hearing about governance in action, in particular through our always popular and thoughtful directors panel. We value the willingness of senior directors share the way they integrate sustainability and governance considerations into their work.
The participation of listed company directors today, and at so many ACSI conferences before, highlights, I hope, that engagement between companies and their investor owners isn’t the bare-fisted combat some believe it to be.
Australia has a great record of collaboration between investors and companies, which is something we should not take for granted. Many countries around the world do not have open and collaborative relationships between directors and investors.
And with that, let’s begin the conference.
Thank you and please welcome Ali Moore back to the stage.