Perpetual Ltd

Lobbying Governance

AI Extracted Evidence Snippet Source

###### Engagement responsibilities

We believe the responsibility for ESG engagement should fall with those making the investment decisions: the analysts and portfolio managers. In our view, companies with strong ESG frameworks tend to operate more sustainably, carry less risk of stakeholder intervention and are more likely to build and sustain valuable brands and reputations. Thus, engagement on ESG is deeply embedded into our ordinary due diligence as part of our investment process. We have also found companies more likely to engage with the decision makers behind their large shareholdings, again putting us in a uniquely effective position for advocacy.

Equally important in the engagement and advocacy process is monitoring to ensure ongoing compliance and alignment. We do this through regular dialogue with senior management and other stakeholders as required. We seek a level of measurable accountability from the companies we invest in, allowing improvement over the duration of our holding period. [...] ###### Escalation policy

If our attempts at engagement are ignored or material issues remain unresolved, we will escalate any matters of concern beyond corporate senior management teams. This may include contact with the company's board of directors or relevant regulators, the use of proxy voting or collaboration with other shareholders. At all times, we reserve the right to divest our position in any investment that refuses to engage on ESG matters.

https://www.perpetual.com.au/globalassets/_au-site-media/01-documents/03-wealth-management/policies/perpetual-private_de_corporate-engagement-policy.pdf

## Governance, Reporting and Review [...] The policy has been endorsed by the PTCo Investment Committee which is a delegated board committee of various Perpetual entities, including Perpetual Investment Management Limited (PIML). [...] ### Roles and Responsibilities [...] Perpetual Investment Retains ultimate responsibility for governing advice, investment Management Limited (PIML) management and trustee duties. [...] Perpetual Private Investment Committee (PP IC) The delegated authority for PIML which will approve and monitor against this policy. [...] Perpetual Private Investment Research Team (PPIRT) The Investment Research team will manage investments and ensure on-going compliance with the policy. [...] The Perpetual Private Investment research team is responsible for the Responsible Investment related reporting and review of all Perpetual Private portfolios. This includes: [...] - Ensuring ESG factors are appropriately considered throughout the entire investment process. [...] - Ensuring this policy is implemented. [...] - Ensuring we report annually on our progress and approach to Responsible Investment. [...] - Monitoring of each appointed external investment manager's ESG policy and incorporation of ESG risk factors into their decision-making processes. [...] - Reviewing this policy if relevant legislation or regulation requires change.

https://www.perpetual.com.au/globalassets/_au-site-media/01-documents/04-group/02-governance--policy/2023/perpetual-private-responsible-investment-policy.pdf

Describe the process(es) your organization has in place to ensure that your engagement activities are consistent with your overall climate change strategy[…]Perpetual engages through its membership of Investor Group on Climate Change (IGCC) to understand the priorities and activities of that organisation and how that may influence policy, law, or regulation in relation to climate change.

CDP Questionnaire Response 2022

Does your organization have a public commitment or position statement to conduct your engagement activities in line with the goals of the Paris Agreement?[…]No, and we do not plan to have one in the next two years

CDP Questionnaire Response 2023