Robust and comprehensive corporate governance practices are intrinsic to our investment philosophy and to delivering long-term value for clients.
Recorded ESG company engagements in public markets businesses of MAM during FY231
proxy votes on unique proposals in public markets businesses of MAM during FY232
infrastructure and real estate funds in private markets business of MAM completed 2023 GRESB assessments3
We believe there’s a strong correlation between sound governance and long-term value creation. In our experience, companies that effectively manage material risks and opportunities in their business models – including those related to sustainability – are better positioned to deliver durable, long-term financial performance.
We champion good governance within our organisation, on the boards of the private companies we invest in, and through our stewardship practices within our Public Investments business. Beyond complying with laws and regulations, we’re focused on ensuring consistent policies and processes, as well as clear lines of accountability, are in place to manage ESG risks and opportunities.
Within our private markets businesses, we nominate senior employees for appointment as non-executive directors to serve on the board of our portfolio companies and monitor the management of ESG risks and opportunities. One way we measure the impact of our stewardship activities is through third-party sustainability assessments, such as GRESB’s infrastructure and real estate assessments, which enable us to benchmark ESG performance, identify areas for improvement, and engage with investors.
Within our public markets businesses, company engagement provides us with an important opportunity to improve our understanding of investee businesses, alongside the risks and opportunities that are material to their long-term success. We seek to have regular dialogue with companies to provide feedback on company practices and disclosures, and to advance sound governance. Company engagement may also inform our investment teams proxy voting decisions.
Learn more about our approach to stewardship
Strong corporate governance is fundamental to making decisions that stand the test of time. We believe it goes to the heart of sound risk management, helping to support value creation for our investors.”
Chief Risk Officer, Macquarie Asset Management
In our increasingly connected and data-driven world, cyber and data security risk has risen significantly and is inherent in the use of the technology platforms that support our business activities. We take our responsibility for the data we handle very seriously and uphold the highest standards of privacy practice and security.
In our private markets businesses, we keep open lines of communication with technology teams at our portfolio companies. We have also enhanced our minimum standard cyber due diligence and engaged third-party specialists. In our public markets businesses, we have started to engage with companies beyond protecting data privacy and confidentiality to consider the ethics of using artificial intelligence and big data mining.
We take it for granted that we can flip a switch to get light and turn on a tap to get water, but the infrastructure that makes this possible is complex and requires significant digital capability. The real-time impact our portfolio companies’ systems have on people’s daily lives amplifies the need for strong technology and data security.”
Chief Operating Officer, Macquarie Asset Management