Not long after ACSI was born, its founders turned their attention to how they could further support the sustainable, long-term growth of superannuation members' retirement savings.
After all, they were leaders of what was then called 'industry super', and their sole objective was 'maximising members' wealth at retirement'. Their trustee directors also had an obligation to minimise the risks associated with the superannuation funds' investments – risks that included governance matters such as corporate conduct and culture.
It might be hard to put a dollar figure shareholder money earned or lost, but as the collapse of One-tel and HIH showed at the time – and so many contemporary examples have continued to prove – poor governance practices can threaten corporate performance, destroy shareholder value and jeopardise members' financial interests.
Rules and regulations on governance already existed, but ACSI's founders believed them "insufficient to instill ethical standards of corporate conduct and deliver the best protection to the ultimate stakeholders."
The key ingredient in building that strong governance culture may be intangible, but they believed it required an ethical, functional and collegiate board and management culture, supported by highly ethical and professional staff throughout the organisation.
And, they agreed, the 'most visible avenue available to trustees' to influence strong corporate governance practices was through exercising the voting rights that came with share ownership.
That's how the first of what was to become ACSI's essential Governance Guidelines series came into being - as a supplement to existing regulatory and industry standards, with the ultimate aim of giving superfund trustees an informed benchmark to assess corporate governance practices of listed investee companies.
They also spelled out the practices ACSI encouraged corporations to develop, in support of cultures fostering commitment to shareholder value creation, business creativity, transparency and continuous disclosure.
The first ASCI Corporate Governance Guidelines were released in March of 2003, and in a remarkable coincidence - and strong indicator that the times were changing - that same month, the ASX Corporate Governance Council released its own Principles of Good Corporate Governance and Best Practice Recommendations.
There have since been four more editions of the ASX recommendations, but ACSI has updated its own Guidelines every two years since its first. Soon, it was also publishing a guide to incorporating 'E and S', or environmental and social issues, into the investment process, and providing listed companies with suggestions and the expectations on the same of superannuation funds as their investors.
By 2011, thanks to their financial materiality, 'E and S' became part of the main Guidelines, with ACSI calling for companies to disclose their ESG strategy, demonstrating to investors how the company manages the risks and opportunities.
In 2026, ACSI released its 12th edition of the Governance Guidelines, revised and updated to address contemporary issues across the market. As with previous editions, the guidelines are principles based, recognising that not all issues will be financially material for all companies. This edition incorporates feedback from diverse market participants and ACSI stakeholders, and includes insights gained from the hundreds of company engagements ACSI conducts each year. At its heart though, it still reinforces the original focus on financial materiality, core investor expectations and the importance of governance.
Striking a balance between the judicious use of shareholder powers to influence listed companies and avoiding an unduly rigid or prescriptive approach to governance issues on the other, the Guidelines are not just useful during reporting or AGM season. They promote good corporate governance in Australian listed companies year-round, and in turn, have helped secure and protect the retirement savings of millions of people.
