Responsible Investing

The Investment Store is a strong advocate of Responsible Investing.

Responsible investment is a process that takes into account environmental, social, governance (ESG), ethical and sustainability issues into the investment process of research, analysis, selection and monitoring of investments.

Responsible Investing can take a number of forms and approaches; from excluding investments in certain industries and sectors deemed unethical (like tobacco, controversial weapons and gambling) to identifying investments that have positive impacts on the environment and society (e.g. investments in renewal energy).

Responsible investing has grown significantly over the past few years in NZ and around the world...

  • The Responsible Investment market in NZ was worth $142 billion as at 31 December 20201
  • Over three quarters of New Zealanders expect their KiwiSaver funds and other investment to be managed responsibly and ethically according to a survey undertaken in September 20202
  • The same survey highlighted that the top three issues that KiwiSaver schemes should avoid were Labour Rights abuses, Human Rights abuses and environmental degradation; similarly, the top three issues that KiwiSaver investors would be prepared to invest in were renewable energy, healthcare and medical products and sustainable water2
  • Various research studies (from institutions such as Oxford university, Harvard Business School, Morgan Stanley Institute for Sustainable Investing and Deutsche Asset & Wealth Management amongst others) have demonstrated that companies with strong corporate responsibility policies and practices are sound investments1.
  • Governments, businesses and citizens are increasingly recognising the role of finance, including investing, has to play in order for countries to meet their Paris climate commitments (and other sustainable and development goals). Sustainable investing is going to be a key and growing feature of the investment landscape in the years to come.

The Investment Store is a member of the Responsible Investment Association of Australasia (RIAA, the peak industry body championing Responsible Investing in New Zealand and Australia). Matthew Mimms is currently a board member of RIAA. In 2019 and 2020, he was a member of the Technical Working Group of the NZ Sustainable Finance Forum, an initiative of the Aotearoa Circle.

The Investment Store encourages it's fund manager partners to consider responsible investment issues as part of their investment approach and process. Currently, all of our fund manager partners incorporate responsible investment (in one form or another) as part of their investment process.

To learn more, please contact us on 0800 331 041 or by e-mail to info@theinvestmentstore.co.nz


1RIAA Responsible Investment Benchmark Report New Zealand 2021. Data is effective to 31 December 2020. A full list of various research regarding responsible investment out-performance is available on page 18 of the Executive Summary of the 2019 Benchmark report.  2RIAA and Mindful Money (2020) Responsible Investment New Zealand Survey 2020, October 2020.

Please note, any information expressed or recommendation made on this webpage is in respect of a kind of financial advice product in general rather than a particular financial advice product (for example, an opinion about shares generally rather than shares of a particular company). Neither The Investment Store, nor any of its directors or employees gives any warranty as to the reliability, accuracy, suitability or currency of the information contained in this blog. Nothing in this webpage/blog is, or should be deemed to constitute, financial, investment, taxation or other advice from the investment store or a recommendation from the Investment Store to purchase any product or service. The information provided in this communication is for discussion purposes only and should not be relied on in making an investment decision.

 
 
 
 

Want to learn more about Responsible Investing?

Responsible investing can sometimes appear full of jargon. The Responsible Investment Association of Australasia (RIAA) has produced a number of guides including an introduction to responsible investing. To access a copy, please click here.

If you are a financial adviser and would like to learn more about Responsible Investing, RIAA has produced a  Financial Adviser Guide to Responsible Investing. You can access a copy by clicking here.

Responsible and Sustainable Investing

THE PATH TO 2030

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With the the focus on climate change and sustainability becoming evermore intense and critical, we recently commenced a new regular newsletter which aims to provide news and insight on a variety of responsible and sustainable investment issues during what will likely prove to be a critical decade. You can access some of the articles in this series below: 

Responsible Investment growth outpaces wider market

Ethical Investment Week, Climate Disclosure and COP 26

Aotearoa New Zealand Investor Coalition for Net Zero & COP 26

COP 26 Update

The Investment Store is a member of the Responsible Investment Association of Australasia.

 

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