We know the increasing importance our customers are placing on aligning their investments with their values. That’s why we approach responsible investing by considering both socially responsible investment (SRI) factors and environmental, social and governance (ESG) factors.
We offer a comprehensive range of funds that enables our customers to choose an investment approach that best matches their responsible investing needs.
Whether you want to avoid companies involved in controversial businesses such as weapons manufacturing or extraction of coal, or want to prioritise reducing the emissions profile of your investment, or simply want to track a market index - we have an investment option for you.
The following information provides an overview of our responsible investment process. You can find specific information about each fund in our Responsible Investment Policy.
So how do we assess investment opportunities?
We incorporate responsible investment into our funds management process in the following ways:
Socially Responsible Investment (SRI) exclusions
We approach responsible investment by first applying an ethical and moral lens to investment opportunities. If the company doesn’t meet our socially responsible investment standards, we will exclude them.
Our Ethical and Principle-Based Funds use a minimum set of SRI standards, to exclude companies which:
- derive a material part of their revenue from the exploration or extraction of coal
- are associated with tobacco
- are associated with illegal weapons (such as cluster munitions, anti-personnel mines, and nuclear explosive devices)
Our Ethica Fund also incorporates further SRI exclusions, such as companies associated with alcohol, gambling, palm oil, adult entertainment, child labour or factory farming. You can find out more information about our SRI exclusions in our Responsible Investment Policy.
Environmental, Social and Governance (ESG) screening
ESG factors are non-financial considerations we use to assess the sustainability of an investment. We focus on environmental criteria such as how well a company minimises their impact on the environment through reducing their greenhouse gas emissions compared to market benchmarks.
- Greenhouse gas emmisions
- Waste and pollution
- Health and safety
- Labour standards
- Human rights
- Animal welfare
- Board structure, diversity and independence
- Anti-bribery and corruption
External Investment Managers
Where we use external investment managers, we assess their approach to responsible investment prior to their appointment and at least annually after that. Our preferred external manager appointments are signatories to the United Nations Principles for Responsible Investment (UNPRI). Find out more about the UNPRI’s six principles on the Principles for Responsible Investment website.
Our aim is to support voting rights for shareholders and promote responsible corporate behaviour.
We engage proxy research and voting advisers when creating voting and engagement strategies, this includes deciding how to exercise speciﬁc voting rights, and in the actual execution of such voting rights.
Our responsible investment options
We offer three categories of investment options, from fully integrated responsible investment options to non-ESG options that do not actively take ESG factors into account.
These funds have responsible investing at the core of their investment management by considering the following:
- SRI exclusions
- Systematic ESG screening
- Reduces investment into companies that have negative ESG factors
- Increases investment into companies with superior ESG factors
- Sustainable proxy voting policies
These funds aim to provide a baseline of responsible investment by using our common SRI exclusions.
- SuperLife Default Fund (SuperLife KiwiSaver Scheme only)
- SuperLife Overseas Bonds Fund
These funds are not designed to incorporate responsible investment.
- All funds not included in the Ethical or Principle-based categories.