Where to now for investors on reconciliation? Four things we can do post-referendum
By Kate Turner and Belinda White
Where to start? How do we process the decision that Australia will not change our constitution and enshrine a Voice to Parliament for Aboriginal and Torres Strait Islander peoples? Perhaps we need to go further back, to Paul Keating’s famous Redfern speech, some 30 years ago.
“We cannot imagine that the descendants of people whose genius and resilience maintained a culture here through fifty thousand years or more, through cataclysmic changes to the climate and environment, and who then survived two centuries of dispossession and abuse, will be denied their place in the modern Australian nation.
“We cannot imagine that.
“We cannot imagine that we will fail.”
And so, those of us who had hoped for a successful Yes vote must maintain hope, and believe that the project of reconciliation will not fail in the end.
Because social change is mostly slow, rarely easy, and beset with challenges. Even as the dust settles on the referendum, it is incumbent on those who support a fairer, more inclusive society to continue the work.
A Voice to Parliament would have been a powerful tool for increasing the agency and influence of Indigenous Australians – but it’s not the only way to do that. And as investors, we have an ongoing role to play in achieving this end.
As Yes campaign advocate Marcus Stewart told The Australian Financial Review, ‘‘The work starts now. The disadvantage that faced our communities yesterday is still here today, and will still be there tomorrow.’’
So, here are four things we can do now and tomorrow.
One. Elevate First Nations voices – and listen to what they have to say
While the official Voice won’t be created, there are already many voices asking to be heard. The irony is not lost on us that this column is penned by white women; we want to hand over the microphone.
Collectively, we must look for ways to give First Nations voices a bigger platform, whether it’s through policy advocacy, partnerships with communities, philanthropic contributions, or creating cultural safety in the workplace.
And as investors, we should be asking the companies we invest in how they are doing this in practice in a meaningful way, and how their diversity, equity and inclusion is addressing the needs of indigenous people.
Two: Advocate for a commitment to Free, Prior and Informed Consent (FPIC) from companies
As observed in our earlier article, the law has not always kept up with community expectations around indigenous rights, and this has led to friction as well as reputational and financial risk.
FPIC requires, as its first principle, that “consent is free, given voluntarily and without coercion, intimidation and manipulation, a process that is self-directed by the community from whom consent is being sought, unencumbered by coercion, expectations or timelines that are externally imposed.”[1]
It is becoming increasingly clear in Australia that failing to seek FPIC is an investment risk – not just to a company’s social license, but to the progress and speed of projects.
This may require a reimagining of what it means to ‘consult with traditional owners’. It asks for more recognition of the complexities of engaging with different stakeholder groups, their multiple needs and expectations, and the differing agendas they might have.
Companies in Australia have made varying commitments to FPIC, and investors can help to ensure these companies remain accountable and transparent on the issue.
Three: Continue to create real and meaningful Reconciliation Action Plans (RAPs)
Ones that are focused on outcomes and based on dialogue with indigenous communities. A RAP is not about writing a manifesto and hanging it on a wall. For a RAP to be effective, organisations should take into consideration:
– The purpose – Invest the time upfront to identify why this is important to your business; how it might impact your people, your leadership and your clients; and how this can be built into the company strategy.
– The hard conversations – Be prepared to assess leadership capability for discussions about diversity within the organisation. In some cases, education and training must come first.
– The time and money – An effective RAP needs financial investment and team participation. This will require change and transformation and whilst the energy of those who are most passionate will be invaluable, it’s imperative to embed this work across the business, at every level.
Four: Seek a broader understanding of other views
This one’s for the RI and ESG professionals. The Voice made sense to most of us in this community – but the final result showed how far this conviction was from the majority of Australians. We need to break out of the responsible investment echo chamber, so we can understand and address the concerns and objections people have to the ideas we put forward. This is key to the future of sustainable finance more broadly, as it will allow us to build more consensus and stronger stakeholder relationships.
The key, in the end, is to continue the work. As Betty Mabo, daughter of the famous Eddie Mabo, told the ABC, “As First Nations people and as Torres Strait Islanders, we are not going to give up – because we need our voice to be said in parliament.”
Kate Turner is Global Head of Responsible Investment at First Sentier Investors
Belinda White is Responsible Investment Specialist at First Sentier Investors
The views expressed in this article are the personal views of the authors and do not necessarily reflect the views of First Sentier Investors
[1] Defined in the United Nations Declaration on the Rights of Indigenous Peoples (UNDRIP, adopted in 2007).