Case Study: Macquarie Group Limited

The Macquarie Research ESG team’s annual Human Capital Management report uses employee data to show companies whose employees are engaged, diverse and productive.

The Human Capital Management report is an annual ESG research report that analyses Macquarie’s employee indicators database to show companies who have great employee stats like low turnover, good diversity and high levels of engagement outperform. This generates a list of HCM leaders. Companies which have room to improve are also highlighted.

As well as being used by fund managers the report has been used by corporates as a way to benchmark against peers and help drive improvement.

Macquarie has published the HCM report on an annual basis since 2011. The report initially focused on the ASX100 but now includes all covered companies (~227 in December 2018).

How the team works together

Macquarie Research’s ESG team liaises with stock covering analysts to provide an analysis of ESG opportunities and issues relevant to Australian equities.

Hear from a team member

We can see that when companies have engaged and productive employees, it also tends to mean they have good managers and are likely to outperform over the long term. These people metrics can also highlight where companies can reduce costs and improve financial performance.
— Anita Stanley - Head of ESG research
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Anita Stanley - Head of ESG research

Key figures

  • Our dynamic HCM leaders portfolio of companies has outperformed those with lower scores over the past 10 years (3.2%pa outperformance over past 5 years).

  • A positive change in HCM score also drives returns with outperformance of 12.3% pa over the last 3 years of positive vs. negative changes.

  • Originally focused on the ASX100 the report now includes all covered companies (~227 in December 2018).

About Macquarie Group

Number of employees:

Macquarie employs ~15,000 people in over 25 countries

Locations of offices:

Macquarie’s offices are spread across four regions: (1) Australia and New Zealand (ANZ), (2) the Americas, (3) Asia and (4) Europe, the Middle East and Africa (EMEA).

Headquartered in Sydney, our regional hubs in Hong Kong, London and New York support our global network of businesses.