Proxy voting and company engagement Q1 2025

Across Betashares’ range of ethical and impact ETFs¹, in the quarter ending 31 March 2025, we voted at 31 shareholder meetings on 406 individual proposals. We voted FOR 319 times, AGAINST 71 times, and WITHHELD our vote 16 times.

We voted WITH management 323 times and AGAINST management 83 times.

Among the proposals, we supported a shareholder proposal at Visa that would require additional disclosures of the company’s lobbying activities and the policies and procedures that govern these activities. Transparency around the company’s lobbying efforts and expenditures would enable shareholders to assess how corporate resources are being used to influence public policies.

Engagement activity

Engagement activity over the quarter focused on nature and biodiversity, modern slavery, labour rights and Indigenous peoples’ rights.

The Responsible Investment Committee (RIC) engaged with United Utilities Plc regarding allegations that the company was fighting a legal battle to block public access to data on treated sewage discharged into Windermere in the Lake District. As per press reports, United Utilities presided over suspected illegal sewage spills for more than 500 days between 2018 and 2023. The company refused to release the data on phosphorus, ammonia and water cloudiness, arguing it was internal or not covered by regulation. However, the Information Commissioner’s Office ruled that the data should be made public, reinforcing its importance for transparency and environmental oversight.²The objective of our engagement was to gain a deeper understanding of the causes, extent and impact of the breaches, and learn about the company’s efforts to address and remedy the situation.

Following reports of Indigenous rights concerns linked to the Assam Solar Project in India, the RIC initiated an engagement with the Asian Development Bank (ADB). The project, financed by ADB, has been criticised for causing the displacement of Indigenous communities without proper consultation or consent. Allegations include threats to land, homes and livelihoods, as well as claims that some individuals with no ties to the affected villages obtained land titles to receive compensation.³ We contacted ADB to arrange a meeting to address concerns regarding Indigenous peoples’ rights and the Bank’s approach to managing social impact. The objective of the engagement was to understand what steps ADB was taking to resolve these issues, support impacted communities and prevent similar concerns in future projects.

The RIC initiated an engagement with Chinese automaker BYD following reports from Brazilian labour authorities that 163 Chinese workers at a construction site for a BYD-owned factory were victims of human trafficking and were working in “slavery-like” conditions.⁴ The 163 workers were hired by BYD contractor Jinjiang Group, which rejected the authority’s initial assessment. Following inspections in December 2024, a labour inspector stated that BYD brought hundreds of Chinese workers into Brazil on irregular visas and confirmed the company would be fined. The objective of the engagement was to understand how BYD was managing its labour practices, ensuring compliance with local laws and preventing future violations, especially in response to allegations of “slavery-like conditions” involving its contractor.

Footnote:

1. eing Betashares Global Sustainability Leaders ETF (ASX: ETHI), Betashares Australian Sustainability Leaders ETF (ASX: FAIR) and Betashares Climate Change Innovation ETF (ASX: ERTH).
2. https://www.theguardian.com/environment/2025/mar/27/sewage-dumps-windermere-must-end-says-activist-matt-staniek
3. https://www.downtoearth.org.in/energy/is-adb-funded-assam-solar-park-green-grabbing-indigenous-land
4. https://www.abc.net.au/news/2024-12-27/brazil-allege-workers-byd-victims-human-trafficking/104766180