<img height="1" width="1" style="display:none" src="https://www.facebook.com/tr?id=384890482413066&amp;ev=PageView&amp;noscript=1">

We're committed to responsible investing. Environmental, social and governance (ESG) issues are considered by our in-house investment management team when making decisions about investments.

By analysing the ESG profile of companies we invest in, we aim to enhance the expected performance of our portfolios by avoiding those companies with high ESG-related risks, and investing more in companies with limited amounts of ESG risk.

Responsible investing

We’re part of the United Nations Principles for Responsible Investment framework.

In 2020 Kiwi Invest became a signatory to the United Nations-backed Principles for Responsible Investment framework. Find out why that’s important and what that means.

PRI-Sig-Web-V1

 

How we apply our Responsible Investing Policy

Our New Zealand-based global investment management team has control over which industries and companies our funds are invested in.  Decisions about what is or isn't invested in is in our control, guided by our Responsible Investment Policy

We do our research

We subscribe to MSCI ESG Research who provide us with in-depth research, ratings and analysis of the impact on the environment, social issues (like work conditions for employees) and governance-related business practices of thousands of companies worldwide. Their research provides us with critical insights that help us identify ESG risks and opportunities that traditional investment research may overlook.

Influencing positive change where we invest

Using the collective power of our investors we can use proxy voting to influence positive change on ESG issues in organisations we invest in. Through world class research provided by ISS we identify opportunities and, where relevant vote for change as a Socially Responsible Investor. Longer term, these votes make good business sense.

Our exclusions

Exclusions fall into one of the following three categories:

See our exclusions

1. Zero tolerance exclusions

Companies which are involved in any of the following product areas will be excluded for both direct and indirect investment:

Tobacco - We exclude any company involved with tobacco production or where tobacco is the primary industry.

Controversial and nuclear weapons – This category covers weapons such as cluster bombs, landmines, depleted uranium weapons, chemical and biological weapons, nuclear weapons. We exclude any company involved in the manufacture and production of controversial and nuclear weapons.

Whaling and whale meat processing – We exclude any company involved in the hunting of whales and the processing of whale meat.

2. ESG exclusions

Companies which fall into this category exhibit highly unethical behaviour, particularly in the context of:

Companies which fall into this category exhibit highly objectionable behaviour, particularly in the context of:
  • Abuse of the environment
  • Human rights abuses
  • Endemic illegal activities, whether by New Zealand or local law.
These companies will be excluded from directly held investments only, including where such investments may be made by another investment manager under an Investment Management Agreement.
3. Areas of sensitivity

The following industries are considered areas of sensitivity, due to their high likelihood of victimising people and/or the environment:

The following industries are considered areas of sensitivity, due to their greater propensity to victimise people and/or the environment. Companies in these areas that are identified as performing poorly in key areas most likely to cause such victimisation will be excluded for direct investment only:
  • Defence equipment - Companies producing and supplying defence equipment should have sufficient control against bribery and corruption, including improperly supplying such equipment to sanctioned countries.
  • Gambling services - Companies providing gambling services should mitigate the social impact of gambling addiction by implementing a suitable responsible gaming policy.
  • Thermal coal - Companies using thermal coal to generate electricity should demonstrate sufficient commitment to transition to renewable generation.
  • Nuclear power - Companies using nuclear reactors to generate electricity should demonstrate sufficient commitment to transition to renewable generation.
  • Palm oil - Companies producing or distributing palm oil should demonstrate sufficient commitment to preventing deforestation through observing RSPO and source tracing standards.

We also use the New Zealand Superannuation Fund exclusions list to help us identify companies for our exclusion list.

See our exclusions.