Proxy voting and company engagement Q2 2026

Across Betashares’ range of ethical and impact ETFs, in the quarter ending 30 June 2026 we voted at 258 shareholder meetings on 3,365 individual proposals. We voted FOR 2,717 times and AGAINST 542 times, WITHHOLD 61 times and ABSTAIN 45 times.

We voted WITH management 528 times and AGAINST management 77 times.

We supported a shareholder proposal at Shopify requesting the board adopt a policy on responsible AI use. The proponent cited risks including human rights impacts, misinformation and adversarial manipulation from agentic AI, and potential bias or discrimination that could expose the Company to legal, regulatory or reputational harm. We supported the proposal because Shopify currently lacks a formal board-level policy governing AI, leaving a material gap in oversight of a fast-evolving risk area. Given the modest cost of adopting a policy relative to the potential downside, and growing regulatory attention on AI globally, we viewed support as proportionate.

Engagement activity over the quarter focused on human rights due diligence linked to customer use of enterprise technology; worker and contractor safety following fatal incidents at wind farm operations; and environmental and social impacts, including biodiversity, resettlement and Indigenous Peoples’ rights, associated with proposed infrastructure financing.

During the quarter, the Responsible Investment Committee (RIC) initiated engagement with Salesforce following litigation relating to the company’s historical commercial relationship with the online classifieds platform Backpage. The litigation alleges Salesforce continued to provide software and consulting services to Backpage despite growing public concerns regarding the platform’s alleged facilitation of sex trafficking. While the allegations relate to historical conduct and remain subject to legal proceedings, they raised questions about customer due diligence, governance and the safeguards applied to the use of enterprise software.

The RIC sought to understand how Salesforce identifies and manages human rights risks associated with customer use of its products, and what governance, oversight and controls have been strengthened to reduce the risk of its technology facilitating human trafficking or other serious human rights abuses.

Salesforce advised that it prohibits the use of its products for illegal activities, including human trafficking, through its Acceptable Use Policy and broader human rights governance framework. The company highlighted its Office of Ethical and Humane Use, Human Rights Policy and governance processes, which are aligned with internationally recognised human rights standards. Salesforce also outlined its compliance, investigation and escalation processes, stating that it maintains a zero-tolerance approach to human rights violations and continuously reviews its governance framework to strengthen oversight of customer use cases.

The RIC intends to continue to monitor developments in the litigation and assess whether further evidence emerges regarding the effectiveness of Salesforce’s human rights due diligence, customer oversight and risk management processes.

During the quarter, the Responsible Investment Committee initiated engagement with Vestas Wind Systems following reports of two unrelated fatalities involving turbine lift systems at wind farms in Germany and Australia. The incidents raised questions regarding contractor safety management, operational oversight and the effectiveness of health and safety controls across different project delivery models.

The RIC sought to understand the circumstances surrounding the incidents, the allocation of health and safety responsibilities across contractors and subcontractors, and the actions Vestas is taking to strengthen safety practices and reduce the risk of similar incidents in the future.

Vestas advised that health and safety remains its highest priority and outlined the differing contractual arrangements for each incident. In Australia, the fatality occurred during an engineering, procurement and construction (EPC) project involving a subcontractor employee. The company is cooperating with the ongoing regulatory investigation and reviewing lessons learned. In Germany, the incident occurred under a supply-and-install model where key operational responsibilities rested with a subcontractor. Vestas has required a comprehensive investigation and is monitoring the implementation of corrective actions. Across all projects, the company stated that it applies contractor prequalification processes, health and safety standards, audits and oversight, and remains focused on continuous improvement in safety performance regardless of the delivery model.

The RIC will continue to monitor the outcomes of the regulatory investigations and assess whether further improvements to contractor oversight, safety governance and operational controls are demonstrated.

During the quarter, the RIC initiated engagement with the Asian Development Bank following reports raising concerns about the proposed financing of a hydroelectric dam project in Nepal. The reports highlighted potential environmental and social impacts, including biodiversity, resettlement and Indigenous Peoples considerations, and raised questions regarding the project’s environmental and social due diligence.

The Committee sought to understand the project’s current status, the environmental and social assessment process, and the safeguards in place to ensure that any financing decision is supported by robust due diligence and meaningful stakeholder engagement.

The Asian Development Bank advised that the project remains at an early stage of environmental and social due diligence and that no financing or construction decisions will be made until all required assessments have been completed. The Bank stated that the project must comply with both its Safeguard Policy Statement and Nepalese regulatory requirements. While a government-led Environmental Impact Assessment has already been completed and disclosed, the Bank is supporting the preparation of project-specific environmental and social assessments, including environmental management, resettlement and Indigenous Peoples plans. These documents will be publicly disclosed and subject to stakeholder consultation before any Board consideration. The Bank also emphasised its commitment to independent review, transparency, stakeholder engagement and minimising environmental and social impacts.

The RIC will continue to monitor the progress of the assessments and stakeholder consultation process, with particular focus on how environmental risks, community impacts and Indigenous Peoples’ rights are addressed before any financing decision is made.