Proxy voting and company engagement

Across Betashares’ range of ethical and impact ETFs¹, in the quarter ending 31 December 2025, we voted at 87 shareholder meetings on 557 individual proposals. We voted FOR 284 times, AGAINST 262 times and ABSTAIN 11 times.

We voted WITH management 306 times and AGAINST management 251 times.

We supported shareholder proposals at Tesla, Inc. to link executive pay to sustainability performance and to enhance disclosure on child labour risks in EV supply chains. We also backed proposals at Woolworths Group seeking stronger farmed seafood reporting, a formal seafood sourcing policy and retaining beef as a high-risk deforestation category to reinforce biodiversity, human rights and emissions commitments.

Engagement activity

Engagement activity over the quarter focused on supply chain labour and human rights practices, deforestation and nature-related risks linked to agricultural sourcing and the management of social and environmental impacts in large-scale infrastructure financing. This includes protections for affected and vulnerable communities.

The Betashares Responsible Investment Committee (RIC) engaged with Apple Inc. following media reports alleging labour law breaches at Foxconn’s Zhengzhou manufacturing facility. Issues cited included labour practices at the facility, including overtime, use of temporary workers, workplace safety and allegations relating to workplace conduct.² Apple reaffirmed its commitment to high labour, human rights and ethical standards across its supply chain, noting that suppliers are contractually required to meet these standards and are subject to regular third-party audits. Apple also advised that its own teams were deployed on site to commence an immediate investigation. The engagement sought to better understand Apple’s supplier oversight, audit processes and remediation approach. The RIC will continue to monitor developments and assess implications for Apple’s supply-chain risk management and governance practices.

The RIC also engaged with Woolworths Group Limited following media and stakeholder concerns regarding its commitment to sourcing deforestation-free beef. In August 2025, the Australian Conservation Foundation questioned whether Woolworths had stepped back from its 2025 commitment, citing disclosures in the company’s 2025 Sustainability Report.³ Similar concerns were raised at the company’s October 2025 AGM.⁴ In response, Woolworths confirmed that Australian fresh beef is covered under its December 2024 No Deforestation Policy. The company stated that the policy has been actively communicated to suppliers and that it will continue to support implementation and provide market updates on progress across deforestation-linked commodities. The RIC will continue to monitor developments and assess implications for Woolworths’ deforestation risk management and sustainability governance.

Finally, the RIC engaged with the European Investment Bank (EIB) following reports that it approved €106.7 million for two highway projects in southern Georgia. CEE Bankwatch, one of the continent’s largest green group networks, alleged breaches of the EIB’s Environmental and Social Standards, particularly relating to involuntary resettlement, stakeholder engagement and protections for vulnerable groups.⁵ The EIB acknowledged the concerns, confirmed engagement with the NGOs and advised that it is monitoring the projects, reviewing mitigation measures and grievance mechanisms and addressing complaints through its formal Complaints Mechanism. The RIC will continue to monitor the EIB’s response and assess implications for its management of social and environmental risks in project financing.

Sources:

1. Being 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.business-humanrights.org/en/latest-news/china-foxconn-workers-producing-iphone-still-subject-to-wage-withhold-illegally-long-working-hours-coercion-of-student-workers-and-intimidation-new-report-alleges/ ↑

3. https://www.acf.org.au/news/woolworths-walks-back-its-deforestation-commitment-only-a-day-after-coles-beefs-up-its-policy ↑

4. https://wilderness.org.au/news-events/deforestation-dominates-woolworths-agm-as-shareholders-demand-urgent-action ↑

5. https://bankwatch.org/publication/highway-of-injustice-how-eib-financed-east-west-road-projects-in-georgia-impact-local-communities ↑