We help you avoid harm by ensuring environmental, social, and governance factors are considered as part of the investment decision process and by restricting investment in certain industries.
Investing your money in companies with strong ESG practices
When it comes to investing your money, we consider the environmental, social, governance (ESG) impacts of companies alongside their risk and return. We do this to target strong investment opportunities in companies that support their customers, employees, and the environment they operate in.
We believe more sustainable companies can grow faster by selling into higher-value markets, attracting better employees, and reducing regulatory risks. We consider ESG issues throughout the investment process, including in the research, analysis, and selection of companies.
Limiting your exposure to harmful industries
We restrict your exposure to fossil fuels, weapons, and tobacco. Industries that we believe are harmful to both climate and health equity outcomes.
We exclude any company that derives 10% or more of their revenue from:
- the exploration, extraction, refining, or processing of fossil fuels
- engaging in all three fields of petroleum production: extraction (upstream), transportation (midstream), and refining and marketing (downstream)
- the supply of equipment and services to oil and gas exploration
- fossil fuel-based power generation
- We exclude any company that derives any revenue from the manufacture or sale of controversial weapons such as cluster munitions, antipersonnel mines, or nuclear explosive devices.
- We exclude any company that derives 10% or more of their revenue from weapons systems, component and support systems, or weapons services.
- We exclude any company that derives more than 10% of their revenue from production and distribution of firearms or small arms ammunition intended for civilian use.
- We exclude any company that derives any revenue from the manufacture of tobacco.
- We exclude any company that derives 10% or more of their revenue from the sale of tobacco.
Companies involved in very severe controversies (e.g. human rights abuses) are restricted from most portfolios. MSCI’s controversy screens are applied across all equity portfolios as well as the NZ fixed interest portfolio.
Investments are continually monitored and offending companies that meet the criteria are identified and excluded at semi-annual index reviews. Controversy screens are aligned to the underlying principles of the United Nations Global Compact, the United Nations General Principles of Business and Human Rights, and the International Labour Organization Conventions.