RECENT mainstream media news stories about Australia’s listed travel companies have been the subject of “robust board level discussions” among the ethical investment community, according to the head of one of the country’s leading industry superannuation funds.
Speaking yesterday at TD’s Sustainability Summit in Sydney, Christian Super CEO Ross Piper highlighted the strong trend among investors to look at more than just the financial bottom line of businesses when making decisions about where to put their members’ funds.
He said company culture was one key indicator, with investors placing increased consideration on a company’s culture, along with environmental and governance factors.
“Engagement in sustainability for any business is not only a moral and ethical question, but it’s now closely linked with core long-term business values, social licence to operate and profitability,” Piper said.
“The investment market cares deeply about organisational culture.
“Any company that is attracting press around culture – for better or for worse – will be on the radar in some way, shape or form.
“Our ethics committees had a robust discussion about one of the listed travel companies and again we have a very broad portfolio as any pension fund would have, so it’s on the radar,” he said.
“Companies with a poor culture may find themselves increasingly challenged to access the capital they need to grow.”
Piper added that the rise of digital platforms meant a travel business cannot get away with claiming to do things, they must deliver on their sustainability promises.
“We have consumers who are engaged directly with the end product,” he said.
“[So] the question of putting on a smokescreen or veneer of what it’s doing, or where it’s operating, if that’s not borne out by the reality on the ground, it only takes one photo or tweet and that can quickly come unstuck.”
Source: traveldaily