In answers to questions on notice to the parliamentary joint committee on corporations and financial services, HESTA revealed that it voiced its displeasure with Westpac over the now-infamous AUSTRAC matter.
“In December 2019, HESTA was one of the largest investors to voice concerns over the handling of a money-laundering crisis at Westpac Bank, which resulted in the resignations of both Westpac chairman, Lindsay Maxsted, and chief executive, Brian Hartzer and increased measures to improve governance,” HESTA said in response to questions from Liberal MP Jason Falinski.
Through the powerful Australian Council of Superannuation Investors, HESTA has also applied “sustained pressure” on BP to publish its greenhouse gas reduction targets – resulting in the fossil fuel giant announcing it aimed to be carbon-neutral by 2050 – and played a part in AGL’s decision to link climate-related targets into incentive schemes.
“Active ownership that involves engagement with companies and share voting can produce significant results,” HESTA said.
HESTA also revealed that it was involved in a number of class actions, including cases against Westpac and CBA for their breaches of anti-money laundering law, and one against AMP for overcharging members of its superannuation products.
“As an Australian superannuation fund, HESTA has a primary duty to advance its members’ retirement outcomes,” HESTA said. “In the context of class actions, this means seeking to maximise recovery of the losses of its members in an economical manner.
“Given that HESTA, as an Australian superannuation fund, is investing on behalf of its members, HESTA considers any recovery of amounts on behalf of its members as beneficial to preserving the retirement savings of its members, provided, of course, that such recovery amounts exceed the costs of HESTA participating in such litigation.”
