As investors and companies focus on the upcoming Australian AGM season, this Minerva briefing looks at the key environmental, social and governance (ESG) developments and voting issues for investors to look out for.

ESG activism plays an important role in driving the Australian market into the future. Indeed, ESG challenges have played a major role in shaping the Australian market, including the catastrophic 2019 bushfires, climate warming concerns, considerations of indigenous rights, and Australia’s reliance on exports during the global coronavirus health and economic crisis. Good ESG practice is critical in avoiding reputational damage and building resilience to crises such as the pandemic and climate emergency.  

At the same time, Australian regulators have stepped up their review of greenwashing and misleading statements that overstate environmental and sustainability credentials. Oil and gas firm Santos hit the headlines as the first company in the world to have a legal case brought against it over alleged misleading statements on its net-zero commitments, as climate-related litigation and greenwashing action ramps up.