Australian Ethical Investment Ltd

We leverage our tools of influence within this ecosystem to get us closer to our ultimate objective of ending unsustainable fossil fuel expansion. We meet with management and with boards at strategically opportune times and we also show up at AGMs and question the company publicly. We use governance mechanisms like shareholder resolutions to apply pressure to companies. We bring transparency to areas where we think it's needed, which includes producing summaries for investors analysing the approach banks are taking and highlighting gaps, and work with other investors to build pressure (see examples on following page). Divestment is always an option when an engagement has stalled, especially where we see divestment as having more influence to encourage change than remaining a shareholder. In these instances, we will divest loudly, raising the profile of the issue with our member base and in the media. [...] Based of InfluenceMap data on the policy submissions and engagement of both companies and their peak body, we found that they were lobbying on climate in a way that was misaligned with Paris Agreement goals. We raised this issue with both companies' CEOs, agitated in the media about Boral's lobbying, and engaged with their peak body, CIF surrounding their lobbying. Boral and CIF committed to improving their alignment, and we facilitated conversations between both and InfluenceMap in December. Subsequently, CIF's lobbying has improved. Adbri committed to improving disclosure and assessing alignment of positions with Paris. This year's reporting has commenced disclosing their policy positions. [...] We've been leading a positive lobbying thematic engagement through CA100+ and IGCC this year, to create a show of public support from investors and large Australian listed companies across the economy for an ambitious and 1.5 degree aligned 2035 target. After a period of outreach to investors and companies, we held a co-drafting session with key large companies that are emissions intensive, as well as those who will be impacted by a warming climate, to shape the wording of a public letter to Parliament alongside investors. Ten key corporates and five investors participated in the co-drafting process.

Further, Boral is part of a group lobbying against meaningful climate policy at both State and Federal levels of government, and calling for the development of new gas basins. The Cement Industry Federation (CIF) is the peak lobbying group representing Boral along-side Adbri Limited and Cement Australia. [...] We are asking for the company to provide transparency and assurance that its new commitments are in line with the energy transition, and for its lobbying efforts to be aligned too.

Focus on understanding Boral and Adbri's current climate lobbying activities, including through industry groups, and applying pressure where we see their activities are not aligned with the goals of the Paris Agreement. [...] Boral and Adbri disclose their direct and indirect climate lobbying activities and their alignment with the Paris agreement, and support Paris aligned climate policy in Australia. [...] The lobbying engaged in by the company and its industry groups on climate policy, to raise concerns around the transparency and alignment of those activities with the company's own stated positions. [...] The lobbying engaged in by the company and its industry groups on climate policy, to raise concerns around the transparency and alignment of those activities.