BUSINESS LEADERSHIP: THE CATALYST FOR ACCELERATING CHANGE Follow us on twitter @30pctAustralia OUR OBJECTIVE is to achieve 30% of ASX 300 seats held by women by end 2021. Gender balance on boards does achieve better outcomes. GREATER DIVERSITY ON BOARDS IS VITAL TO THE GOOD GOVERNANCE OF AUSTRALIAN BUSINESSES. FROM THE PERSPECTIVE OF PERFORMANCE AS WELL AS EQUITY THE CASE IS CLEAR. AUSTRALIA HAS MORE THAN ENOUGH CAPABLE WOMEN TO EXCEED THE 30% TARGET. IF YOUR BOARD IS NOT INVESTING IN THE CAPABILITY THAT DIVERSITY BRINGS, IT’S NOW A MARKED DEPARTURE FROM WHAT THE INVESTOR AND BROADER COMMUNITY EXPECT. Angus Armour FAICD, Managing Director & Chief Executive Officer, Australian Institute of Company Directors BRINGING TOGETHER INFLUENTIAL INDIVIDUALS AND FIRMS TO ADVOCATE FOR CHANGE ENSURES WE ACHIEVE MAXIMUM IMPACT. CHAIRS, NON-EXECUTIVE DIRECTORS, INVESTORS, INVESTMENT BANKERS AND HEAD HUNTERS ARE ALL PART OF THE BOARD APPOINTMENT PROCESS AND CAN ADOPT “A RIGOROUS APPROACH THAT FACILITATES THE INCREASED REPRESENTATION OF WOMEN ON BOARDS. Nicola Wakefield Evans, Australian Chair 30% Club WHO WE ARE LEADERS LEADING BY EXAMPLE We are a group of chairs, directors and business leaders taking action to increase gender diversity on Australian boards. The Australian chapter launched in May 2015 with a goal of achieving 30 per cent women on ASX 200 boards by the end of 2018. In March 2019 the Australian chapter announced a new objective for 30 per cent women on ASX 300 boards by the end of 2021. The 30% Club will continue to focus on the boards of ASX 200 companies that have not reached the 30 per cent target. BY BRINGING TOGETHER INFLUENTIAL COMPANY CHAIRS, DIRECTORS, INVESTORS, HEAD HUNTERS AND CEOS, WE WANT TO DRIVE A BUSINESS-LED APPROACH TO INCREASING GENDER BALANCE THAT CHANGES THE WAY COMPANIES “APPROACH DIVERSITY ISSUES. Patricia Cross, Australian 30% Club Founder and past Chair AUSTRALIAN 30% CLUB MEMBERS Andrew Forrest John Thame Fortescue Metals Group Ltd Abacus Property Group Samuel Weiss Glenn Barnes Altium Ltd Ansell Limited John Mulcahy David Gonski Mirvac Ltd ANZ Banking Group Ltd Mark Johnson Robert Johanson G8 Education Ltd Bendigo and Adelaide Bank Ltd Paul Brasher David Clarke Incitec Pivot Ltd Charter Hall Group Tracey Horton Catherine Livingstone Navitas Ltd Commonwealth Bank of Australia Rebecca McGrath Ian MacDonald OZ Minerals Ltd Genworth Mortgage Insurance Simon Jones Australia Ltd Computershare Ltd Stuart James John Mullen Greencross Ltd Telstra Corporation Ltd Gregory Martin David Kirk Iluka Resources Ltd Trade Me Group Ltd Christopher Roberts Ilana Atlas Orora Ltd Coca-Cola Amatil Ltd Geoffrey Brunsdon Richard Sheppard Sims Metal Management Ltd Dexus Property Group Douglas McTaggart Brian Schwartz Spark Infrastructure Trust Scentre Group Ltd Kenneth MacKenzie Thomas Pockett BHP Billiton Ltd Stockland Corporation Ltd Stephen Johns Zygmunt Switkowski Brambles Ltd Suncorp Group Ltd Peter Warne Macquarie Group Ltd Kenneth Henry Lindsay Maxsted National Australia Bank Ltd Westpac Banking Corporation & Transurban Ltd Neil Chatfield Leslie Hosking Costa Group Holdings Ltd & Aristocrat Ltd Adelaide Brighton Ltd Jeremy Sutcliffe Rick Holliday-Smith CSR Ltd ASX & Cochlear Ltd Richard Fisher Graham Bradley InvoCare Ltd GrainCorp Ltd Justin Milne Paula Dwyer MYOB Group Ltd Tabcorp Holdings & Healthscope Ltd Peter Bush John Cowin Southern Cross Media Group Ltd Domino's Pizza Enterprises Ltd Michael Chaney Ralph Norris Woodside Petroleum Ltd Fletcher Building Ltd Graeme Liebelt Raphael Geminder Amcor & Dulux Ltd Pact Group Holdings (Australia) Pty Ltd Geoffrey Tomlinson Derek La Ferla Growthpoint Properties Australia Ltd Sandfire Resources NL Peter Hay Trevor Gerber Newcrest Mining & Vicinity Centres Ltd Sydney Airport Ltd Richard Lee Allan McCallum Oil Search Ltd Tassal Group Ltd Gordon Cairns Robert Ferguson Origin Energy & Woolworths Ltd Primary Health Care Ltd Philip Clark Glenn Davis Shopping Centres Australasia Beach Energy Ltd Property Group John O'Neill The Star Entertainment Group NEW CHAIR LIST Justin Milne Allan Griffiths MYOB Group Ltd IOOF Holdings Ltd Kathryn Fagg Michael Coleman Boral Ltd Bingo Industries Ltd Graham Goldsmith Vickki McFadden SEEK Ltd GPT Group Graeme Hunt Dr Sally Pitkin AGL Energy Ltd Super Retail Group Ltd George Vernados Michael Ullmer IOOF Holdings Ltd Lendlease Group Services Pty Ltd Harry Boon Asaleo Care Ltd Roger Sharp Bart Vogel Webjet Ltd InvoCare Ltd Christine McLoughlin Steven Crane Suncorp Ltd Nib Holdings Ltd PAST CHAIR LIST John Shine Holdings Ltd Past Chair of CSL Ltd Graham Kraehe AO John Prescott AC Past Chair of Bluescope Steel Litd Past Chair of Aurizon Holdings Ltd Dr Bob Every AO Leigh Clifford Past Chair of Boral Ltd & Past Chair of QANTAS Airways Ltd Wesfarmers Ltd Group Craig Farrow Douglas Halley Past Chair of M2 Group Ltd Past Chair of Duet Neil Hamilton Harvey Collins Past Chair of OZ Minerals Ltd Past Chair of Navitas Ltd Dr Helen Nugent AO David Haslingden Past Chair of Veda Group Ltd Past Chair of Nine Entertainment Co. David Crawford Holdings Ltd Past Chair of Lendlease Group Donald Taylor David Turner Past Chair of GrainCorp Ltd Past Chair of Commonwealth Bank of Dr Roger Sexton AM FAICD Australia Past Chair of IOOF Holdings Kevin McCann AM Peter Scott Past Chair of Macquarie Group Ltd Past Chair of Perpetual Ltd Jac Nasser AO Catherine Brenner Past Chair of BHP Billiton Ltd Past Chair of AMP Ltd Simon McKeon AO Past Chair of AMP Ltd Rob Ferguson Diane Smith-Gander Past Chair of the GPT Group Past Chair of Broadspectrum Ltd Michael Hutchinson Margaret Jackson AC Past Chair of Infigen Energy Ltd Past Chair of Spotless Group OUR APPROACH THE BUSINESS CASE FOR DIVERSITY ON BOARDS IS CLEAR The business case is clear – a higher standard of corporate governance, improved financial performance and an enhanced capacity to attract and retain female talent. Diverse teams make better decisions: McKinsey & Company research of 180 publically traded companies found ROEs were 53% higher for companies ranking in the top quartile of executive board diversity than those in the bottom quartile. In Australia, the Reiby Institute found ASX 500 companies with women on their boards deliver a significantly higher ROE than those with no women on their board. One woman is not enough: 30% is the proportion when the contributions of a member of a minority group are valued in their own right. Research has shown that a critical mass of three or more women can cause a fundamental change in the boardroom and enhance corporate governance. GETTING TO 30% AN ACHIEVABLE GOAL Achieving 30% female directors on ASX 200 boards is within sight. Women currently comprise 26.7% of ASX 200 board seats. Although the 30 per cent target was not reached by the end of 2018, we were pleased by the success of the campaign and continue to agigate for change. Meeting the 30 per cent target on ASX 200 and ASX 300 boards will require an ongoing investment from CEOs and leadership teams in developing the pipeline of female directors. Percentage of female directorships on ASX 200 boards 29.7% 29.7% 30% 26.2% 25.3% 25% 21.7% 20% 15% 10% 5% 0% 2015 2016 2017 2018 Jun - 19 INVESTOR TOOLKIT INVESTOR FOR ENGAGING GROUP BOARDS ON DIVERSITY Statement of Intent DISCLOSURE EXPECTATIONS As part of our overall stewardship responsibilities on behalf of our members and clients, we will actively engage with investee companies on corporate governance issues including the process the board uses to identify suitable As asset owners and asset candidates for the board. The 30% Club believes that THE BOARD’S ROLE IN DIVERSITY managers we are responsible gender balance on boards not To provide investors with a comprehensive understanding of an investee for the stewardship of the only promotes better leadership Companies that value diversity of thought, and the investments we make on company’s diversity policies, we expect companies to be transparent and governance, but further associated benefits of an engaged, thriving, innovative regarding the procedures used to find new members for the board and how and productive workforce, are committed to fostering behalf of our members contributes to better all-round that process ensures a diverse board. an environment that enables that diversity to permeate and clients. Part of that board performance, and ultimately and define the culture. This commitment begins at the responsibility includes the As well as disclosures required under Corporate Governance Codes, increased corporate performance. board level – setting the tone from the top – and extends assessment of the boards we also expect to see evidence of a culture of commitment to diversity at throughout all levels of the organisation. of our investee companies. the board level. Further details of the types of enquiries we will make and A board that embraces its role in governing diversity We believe boards that disclosures we will seek are outlined in our Investor toolkit for engaging PURPOSE and culture throughout the company is more likely to genuinely embrace cognitive boards on diversity. accelerate progress and reap the benefits a diverse diversity, as manifested This toolkit has been developed by the 30% Club workplace can bring. through appropriate gender ENGAGEMENT to help investors, and those representing them, We believe diversity is first driven by a well-considered representation and a broad more effectively engage with boards of directors and disclosed strategy that articulates why this issue We will actively engage with board chairs and nomination committees on the spectrum of skills and on this important issue. matters to a company and how it is implemented by issue of board diversity to convey the high level of importance that we, and experience, are more likely to management and monitored by the board. achieve better outcomes for our clients and members, place on this issue. investors. There is increasing We will raise questions where there is evidence that there has been a research to support this failure in the nomination process with respect to board diversity.