The ASB Community Trust has signed up to the United Nation’s Principles for Responsible Investment (UNPRI).

 

CEO Jennifer Gill says that, as a major asset owner, signing up to the UNPRI is a natural progression of the Trust’s Responsible Investment Policy adopted by the ASB Community Trust in 2006.

“Our Trustees believe that environmental, social and governance (ESG) issues must be taken into account when the Trust invests its money,” she says.

The UNPRI, developed by some of the world’s leading institutional investors, creates a framework for assessing environmental, social and corporate governance issues. As a signatory, the Trust will consider ESG issues when it makes investment decisions.

The Trust currently monitors its portfolio against the ten principles of the UN Global Compact. This provides a benchmark for the Trusts investment portfolio. Responsible investment research and engagement services are provided by the Centre for Australian Ethical Research (CAER) in conjunction with the London-based organisation EIRIS.

According to CAER’s CEO Duncan Paterson, the signing is a very encouraging step for responsible investment in New Zealand.

“The UNPRI has been very successful in gaining support globally, but it remains northern-hemisphere focussed – 40% of signatories are based in Europe. Having signatories from around the world participating in this process increases the impact of engagement and adds relevance for engagement with local companies.”

CAER and EIRIS research provides the Trust with concise reports on how companies are dealing with high profile issues and gives context and background information. The Trust encourages dialogue and discussion in a process of engagement.

In its fiduciary role the Trust believes that environmental, social and corporate governance issues can affect the performance of investment portfolios.

Background notes

The Principles for Responsible Investment, convened by the United Nations Environment Program Finance Initiative and the UN Global Compact, was established in early 2006 as a framework to help investors achieve better long-term investment returns and sustainable markets through better analysis of environmental, social and governance issues in investment process and the exercise of responsible ownership practices.

Signatories number over 300, including many major international funds and manage assets in total exceeding US$10 trillion.

More information is available at www.unpri.org.