PRESS RELEASE

 

 

Australasia’s biggest philanthropic trust has adopted a socially responsible investment  policy for its billion-dollar assets.

 

 


Auckland-based ASB Community Trust has become a signatory to the UN Global Compact, which supports universal environmental and social principles. It has partnered with the Centre for Australian Ethical Research (CAER) and Ethical Investment Research Services (EIRIS) who will monitor the behaviour of companies in the Trust’s investment portfolio.

“We want to demonstrate leadership in this important area of investment,” says Trust CEO Jennifer Gill. “It’s about advancing universal principals and responsible corporate citizenship to make the global economy more sustainable and inclusive.”


The UN Global Compact calls on companies to uphold 10 universal principles in the areas of human rights, labour, the environment and anti-corruption. 


CAER’s role is to  monitor how well companies measure up to the Global Compact. It will regularly report to the Trust on allegations and provide assessments as to whether the allegations have been addressed satisfactorily.


“This is a process of engagement,” Ms Gill says. “We are not about to divest ourselves of major investments overnight. Where there has been a breach of the UN guidelines we will be encouraging dialogue and discussion. As long as a company is talking about the issue and is seen to be making progress in remedying it, we will continue to hold them.”


Ms Gill says CAER was chosen as the Trust’s responsible investment partner because the two groups have a natural synergy.


ASB Community Trust is a major player in the not-for-profit sector, distributing grants of $55m a year to charitable groups in Auckland and Northland. This in itself is a good fit with CAER, which is an independent not-for-profit organisation.


CAER, based in Canberra, Australia, is part of a global alliance of business monitoring agencies. It acts as an agent for London-based Ethical Investment Research Services (EIRIS), which has over 20 years experience of responsible investment research in the US, UK, Europe and the Asia-Pacific region.


“Over 2800 companies are being researched using a thorough, transparent methodology and all companies with allegations are contacted for their response.  This provides the Trust with concise reports on how companies are dealing with high profile issues and gives us context and background information.” Ms Gill says.


ASB Community Trust’s diversified investment portfolio was started in 1989 when 75% of  ASB bank was sold to the Commonwealth Bank of Australia for $252 million. In 2000 the Trust sold its final 25%  holding in the bank for $560 million.


That money, invested in New Zealand and internationally by the Trust’s 15 Government-appointed trustees, has since been grown to just over $1 billion. At the same time, almost $600 million worth of grants have been distributed from the annual profits.


The Trust is in good company with its move to responsible investment. Its sister trusts, Trust Waikato and Community Trust of Otago, use a responsible engagement overlay for their investments, while the $11.2 billion New Zealand Superannuation Fund also supports the UN Global Compact as its key benchmark for monitoring its portfolio.


ASB Community Trust does not expect its socially responsible investment policy to impact on its return (8.7% pa since 1994). Its range of investments will not change.  What will change is the Trust’s broader objectives, which will now include helping to make the global economy more sustainable and inclusive.


“This is a perfect fit with the Trust’s vision for our own region - to contribute to the enhancement of equity and the enrichment of society in Auckland and Northland,” says Ms Gill. “This policy expands on the Trust’s investment objectives to encompass the UN Global Compact.”


(ENDS)


For further information, contact:

ASB Community Trust CEO Jennifer Gill on (09) 360 0291.

Caer CEO Duncan Paterson on 02 6201 1900, 0405 563 277 or dpaterson@caer.org.au


Notes to editors:


About EIRIS - EIRIS is the leading global provider of independent research into the social, environmental and ethical performance of companies. EIRIS, a UK based organization with offices in the US and Japan, has partnered with international research partners to assemble the industry’s most comprehensive, objective research. With coverage of more than 2,800 European, North American and Asian companies, EIRIS assists a broad range of investors including retail & institutional fund managers, pension funds, foundations and private client investment managers in the implementation of SRI strategies. Visit www.eiris.org for more information.


About CAER - The Centre for Australian Ethical Research (CAER) is an independent, not-for-profit research organization. CAER was established in 2000 to provide independent social and environmental data on companies operating in Australia and the Asia-Pacific region. CAER collects data on approximately 180 socially responsible investment (SRI) issues for the S&P/ASX 300 and major New Zealand companies. The data is based on publicly available information gathered from company and government websites and company Annual Reports. CAER contacts companies directly twice per year, and conducts an annual survey of companies covering all of the SRI criteria addressed. Companies are also provided with the opportunity to review and respond to the information CAER holds twice per year.  Visit www.caer.org.au for more information.


About ASB Community Trust - ASB Community Trust decides on grants for projects in education, the arts, sport, recreation, environment, heritage, health and social services areas each month. About $55 million is granted to community group projects in Auckland and Northland each year. Founded on the sale of its shares in the ASB bank, the Trust has granted more than $500m since being formed in 1988. Any incorporated or charitable trust can apply for funds, provided they are a not-for-profit organisation.