Environmental, Social and Governance

ESG focus and stakeholder engagement

Macquarie structures its ESG approach around eight focus areas considered to be material to our business and stakeholders by assessing the environmental, social (including human rights) and economic impacts of our activities and business relationships. Underpinned by What We Stand For and our Code of Conduct, these focus areas reflect the risks and opportunities identified by the business and the issues of interest to our stakeholders.

Defining our ESG focus areas

On an ongoing basis, we identify the ESG focus areas most material to our business and stakeholders by assessing the economic, environmental and social (including human rights) impacts of our activities and business relationships.

Materiality process

We adopted the approach of the Global Reporting Initiative (GRI 3: Material Topics 2021) to determine our ESG focus areas. This involved:

  • understanding the organisation’s context: gathering and analysing data and information from a broad range of external and internal sources to better understand the context in which we operate
  • identifying negative and positive, actual and potential impacts and assessing their significance: analysing direct external stakeholder feedback and engaging across our Operating and Central Service Groups to identify impacts, generate a real-world perspective of stakeholder priorities and evaluate the relative importance of material ESG topics across our activities
  • prioritising the most significant impacts for reporting: utilising the inputs from our research and engagement to determine the most material impacts based on their significance
  • validating our ESG focus areas and material ESG topics: testing our prioritised material ESG topics with internal stakeholders and against external standards and market expectations.

We are maturing our understanding and approach towards our ESG focus areas, but recognise there is still more work to do.

Macquarie’s ESG focus areas are:

What is it?

Environmental and social (including human rights) risk management involves identifying, assessing, managing, mitigating and reporting material environmental and social risks across Macquarie.

Why is it important?

Environmental and social risks have the potential to affect our business, the environment and the communities in which we operate. Failure to manage these risks may have commercial, regulatory and reputational impacts and affect communities and other stakeholders. Identifying and addressing the environmental and social aspects of our business activities is an integral part of our risk management framework.

As a global business, we have a role to play in promoting respect for human rights in our business activities and operations. Macquarie respects fundamental human rights as set out in the Universal Declaration of Human Rights and codified in the International Covenant on Civil and Political Rights, the International Covenant on Economic, Social and Cultural Rights and core International Labour Organization (ILO) Conventions.

What are we doing about it?

Macquarie applies a precautionary approach to environmental and social risk and seeks to make a positive contribution to environmental and social performance, including considering our direct and indirect impacts on:

  • resource efficiency and pollution prevention
  • biodiversity and natural resource management, including managing the business risks and opportunities associated with biodiversity loss as a result of species extinction and/or reduction
  • environmentally sensitive or protected areas
  • climate risk and energy transition
  • human rights.

What is it?

Macquarie provides a diverse range of products and services with an ESG outcome to corporate, government and institutional clients. Our activities span the investment cycle from research on alternative energy to tailored capital solutions for the development and construction of renewable assets and social infrastructure.

Macquarie’s environmental and social financing, advisory and research activities are a subset of our broader activities.

Why is it important?

Rising temperatures, pollution, biodiversity loss, extreme weather events and social challenges are intrinsically linked, with social challenges further exacerbated by rising costs of living and international food and energy security concerns. To achieve practical environmental and social solutions, increasing volumes of finance are required.

Macquarie is increasingly seeing client demands for capital, innovative financing solutions and support for new technologies in the areas of global energy transition, energy security, transport and mobility, digital infrastructure, housing, education and healthcare. Macquarie continues to support clients seeking to manage and respond to these environmental and social challenges and capitalise on emerging opportunities.

What are we doing about it?

In response to market opportunities and client needs, we facilitate and pursue investments, markets and products with an ESG focus. Through our business relationships, we play a role in developing and promoting sustainable products and businesses across the globe. We support our clients, providing expertise and financial capital to assist them to respond to and capitalise on ESG related opportunities including renewable energy, clean technology and social infrastructure.

We are also:

  • increasing our investment in climate and biodiversity mitigation and adaptation solutions
  • strengthening our support for clients and portfolio companies to reach their decarbonisation and biodiversity-related ambitions
  • aligning our financing activity with the global goal of net zero emissions by 2050.

What is it?

Climate change refers to the long-term shifts in global temperatures and weather patterns. Climate change results in physical and transition impacts, risks and opportunities, including the need to develop adaptation and mitigation measures.

Why is it important?

In its latest report, the UN’s Intergovernmental Panel on Climate Change noted that the world is already seeing widespread climate disruption, affecting the lives of billions of people, and that we can expect additional severe climate impacts. Human induced climate change, and the global response to it, is an intergenerational issue that has for some time shaped the focus and ongoing development of our business.

What are we doing about it?

Macquarie has been driving practical climate solutions for almost 20 years, with our first investments in renewables dating back to 2005. Since then, we have evolved our approach year by year, building capabilities to support the global transition to net zero.

Macquarie’s climate strategy is set out in our 2023 Net Zero and Climate Risk Report.

What is it?

The environmental and social impacts of Macquarie’s own business operations predominantly relate to the resources we consume in our offices, data centres, business travel, and our procurement activity.

Why is it important?

Managing the environmental and social impacts of our own business operations supports our core business and our responsibility to clients, shareholders, employees, and the communities in which we operate.

What are we doing about it?

We seek to manage these impacts by monitoring and reducing our operational emissions, being efficient with resource use, improving the sustainability and diversity of our supply chain and maintaining innovative and sustainable workplaces.

We offset residual Scope 1 emissions, purchase the equivalent of 100 per cent renewable electricity to cover Scope 2 emissions, and offset Scope 3 Category 6 business travel emissions as outlined in our 2023 Net Zero and Climate Risk Report.1

Macquarie’s 2025 Sustainability Plan articulates our corporate sustainability commitments with specific and measurable targets across environmental and social pillars.

What is it?

Clients and customers are at the core of our business. They put their trust in Macquarie by choosing to work with us, and we work to maintain this trust by focussing on delivering exceptional experiences and outcomes.

Why is it important?

Macquarie relies on building and maintaining enduring relationships with our co‑investors and corporate, institutional, government and retail clients across all our Operating Groups. In meeting the responsibilities that come with owning and managing public assets, we seek to manage our investments and managed funds’ portfolio companies for long term success for the benefit of our clients.

What are we doing about it?

We are committed to ensuring that our products are marketed appropriately and that our clients are treated fairly. We have implemented policies and procedures to ensure that consumer complaints are handled in an appropriate and time efficient manner and agreements do not contain provisions that may be considered abusive or unfair. We have a Customer Advocate responsible for promoting fair and reasonable customer complaint outcomes, reviewing and assisting with determining escalated customer complaints, and providing a customer-centric voice when making recommendations to improve customer experience.

What is it?

We recruit talented individuals and encourage them to realise their potential in an environment that values excellence, innovation and creativity.

Why is it important?

By supporting our people’s development and wellbeing, we ensure Macquarie continues to meet the highest standards and serves the evolving needs of our stakeholders.

As a services business, the diversity of our people is one of Macquarie’s greatest strengths. An inclusive, equitable workplace enables us to deliver more innovative and sustainable solutions for our people, clients, customers, shareholders and communities. Our inclusive culture and equity commitment support our purpose of ‘Empowering people to innovate and invest for a better future’.

What are we doing about it?

Our focus is on attracting, engaging, developing and retaining talented individuals, providing opportunities for career-long learning and development and providing safe workplaces within an inclusive culture that values diversity, equity and inclusion.

Macquarie strives to create an environment where continuous learning is part of an employee’s career development and recognises the benefits to the individual and the wider organisation of such investment.

We are making positive progress to increase diverse representation at all levels of Macquarie and sustain an inclusive workplace for all our people but we still have work to do. 

What is it?

As a global financial services provider we operate in a highly regulated environment. We are committed to conducting our business in accordance with all applicable laws and regulations and in a way that enhances our reputation in the market and supports local regulators in achieving their objectives.

Why is it important?

A failure to manage legal and regulatory risks can have a material impact on our clients and the markets in which we operate, and on our business and reputation.

What are we doing about it?

Macquarie’s organisational culture drives the way we do business, and our expectations of our people are outlined in the Code of Conduct. Our approach is based on three long‑held principles: Opportunity, Accountability and Integrity.

Macquarie’s purpose ‘Empowering people to innovate and invest for a better future’ represents why we exist and what we do. We believe that by empowering people – our colleagues, clients, communities, shareholders and partners – we will achieve our shared potential. Macquarie’s principles explain how we do business.

What is it?

The Macquarie Group Foundation (the Foundation) drives social impact work for Macquarie Group, supporting its people, businesses, and communities to build a better future.

Why is it important?

Macquarie, through its philanthropic arm, the Foundation, encourages Macquarie staff to give back to the communities in which they live and work by contributing service, financial support and leadership to the community organisations they feel passionately about. Specifically, Macquarie recognises that many people around the world face systemic barriers to employment and as such, the majority of the Foundation’s funding relates to breaking down these barriers and building pathways to economic security.

What are we doing about it?

The Foundation provides funding in a number of ways, including:

  • matching staff donations and fundraising
  • providing grants to a community organisation with a Macquarie staff member on its board
  • donating to a staff-nominated organisation for 10 and 25 year employee anniversaries
  • financial awards to community organisations recognising outstanding Macquarie staff contributions
  • making grants to organisations which meet our grants criteria (a small number of grants outside of these criteria may also be made at the Foundation’s discretion).

Engaging our stakeholders

Clear dialogue with stakeholders is important to building strong relationships, understanding external dynamics, earning and maintaining trust, enhancing business performance and evolving our ESG approach. We regularly engage with a broad range of stakeholders including clients (corporate, institutional, fund co-investors and retail customers), shareholders, investors, analysts, governments, regulators, employees, suppliers and the wider community.

Our engagement with stakeholders helps identify and validate the ESG focus areas described above. Our eight overarching ESG focus areas are comprised of more specific material topics. The ESG focus areas and material topics that sit under them were identified during Macquarie’s materiality assessment.

The following section sets out a list of our key stakeholders, how we engage with them, the key topics that they tell us matter most to them, and how this translates into our ESG focus areas.

The previous section, which lists Macquarie’s focus areas, also includes further details on how we respond to them.

Swipe for more
Key engagement channels Key matters raised How we responded
  • One-to-one contact (via phone, emails, letters etc.)
  • Webcasts and teleconferences
  • Knowledge-based conferences and events
  • Global and sectoral insights and research
  • Service and experience
  • Transparency and disclosure
  • Regulatory compliance
  • Market volatility and business resilience
  • Our purpose and ESG focus areas
  • Greenwashing
  • Net-zero targets
See pages 52, 54-61 and 66-67 of the FY2023 Annual Report, and Managing environmental and social risk, Climate change, Environmental and social financing, and Client and customer experience
Swipe for more
Key engagement channels Key matters raised How we responded
  • Dedicated customer support teams and relationship managers (via phone, emails, letters and, in some cases, in-branch)
  • Online forums, surveys and focus groups
  • Social media
  • Complaint management systems
  • Macquarie’s Customer Advocate
  • Cost of living pressures (e.g., COVID-19, natural disaster relief etc.)
  • Vulnerable customers
  • Financial education and literacy
  • Fees, charges and interest rates
  • Transparency and disclosures
  • Customer service and experience
  • Products, fees and charges
  • Information security, data privacy and financial crime
See pages 58-61, 66-67 and 70-71 of the FY2023 Annual Report, and Environmental and social financing, Client and customer experience, and Business conduct and ethics
Swipe for more
Key engagement channels Key matters raised How we responded
  • Long-term partnerships with non-profit organisations globally
  • In-person and virtual volunteering events, including the Foundation Week, Better Migration Week (Asia) and Raise mentoring (ANZ) and Social Mobility Week (EMEA)
  • Macquarie Social Impact Awards
  • Supporting local communities
  • Creating employment opportunities; social and economic participation
  • Cost of living pressures and support due to global geopolitical unrest, economic uncertainty and natural disasters
  • Impacts of business activities
See pages 52-53 and 72-75 of the FY2023 Annual Report, and Community and Managing environmental and social risk
Swipe for more
Key engagement channels Key matters raised How we responded
  • Annual ‘Macquarie Voice’ survey
  • Interactive in-person and virtual events with the CEO and Executive Committee
  • Internal communications channels, including Workplace, SharePoint and Slack
  • In-person and virtual training
  • Internal employee networks and committees
  • Internal employee focus groups and pulse surveys
  • Future of work
  • Flexible working arrangements and return to office
  • Our purpose and ESG focus areas
  • Diversity, equity and inclusion
  • Professional growth and development
See pages 42-47 and 68-71 of the FY2023 Annual Report, and People and workplace, Business conduct and ethics, and Diversity, equity and inclusion
Swipe for more
Key engagement channels Key matters raised How we responded
  • Engaging with parliamentarians and policy makers through avenues such as formal meetings, attending events, speaking in public forums and appearing before parliamentary inquiries where appropriate
  • Making submissions to industry consultation processes and inquiries, where appropriate
  • Participating in government and other policy advisory panels when invited to do so, and where we can make a differentiated contribution based on our expertise
  • Regulatory compliance
  • Stability of financial system
  • Transparency and disclosure
  • Investor protection
  • Fair and effective markets
  • Financial crime and cybersecurity
  • ESG and climate-related disclosures
See pages 52-57, 66-67 and 70-71 of the FY2023 Annual Report, and Managing environmental and social risk, Climate change, Client and customer experience, and Business conduct and ethics
Swipe for more
Key engagement channels Key matters raised How we responded
  • Direct engagement through our Investor Relations team
  • Results Announcements and Operational Briefings
  • Annual General Meeting
  • Domestic and international investor roadshows, seminars and conference attendance
  • Market volatility and business resilience
  • Financial performance
  • Approach to financial and non-financial risk management
  • Dividends
  • ESG risk management and ESG financing
  • Supporting the decarbonisation of our clients
  • ESG approach, including our net-zero target 
See pages 16-17 and 52-67 of the FY2023 Annual Report, and Managing environmental and social risk, Climate change, Environmental and social financing, Sustainability in our own business operations, and Client and customer experience
Swipe for more
Key engagement channels Key matters raised How we responded
  • Dedicated Group Procurement team
  • In-person and virtual meetings, conferences and workshops
  • ESG questionnaires
  • Risk-based assurance programme which involves in-depth assessments and onsite meetings with suppliers exposed to high human rights risks based on country of operation and service category
  • Supplier diversity
  • Product sustainability
  • Payment terms and times
  • Human rights and modern slavery
See pages 52-53 and 58-64 of FY2023 Annual Report, and Managing environmental and social risk, Environmental and social financing, and Sustainability in our own business operations

More information on each of the Focus Areas is available on the Environmental, Social and Governance pages of our website and in Macquarie Group’s ESG Report which can also be downloaded from the website.

1.Emissions Scopes and Categories are defined under the Greenhouse Gas Protocol Corporate Accounting and Reporting Standard.