We believe in responsible investment - choosing investments that meet our standards when it comes to environment, social and corporate governance factors.
We engage an independent provider of Environmental, Social and Governance (ESG) research and ratings to provide a list of companies subject to the exclusions below, based on their definitions, criteria and assessments.
The asset exclusions currently encompass the following:
- Companies involved in the manufacture of nuclear weapons, cluster munitions and anti-personnel mines (together, "controversial weapons")
- Companies involved in the manufacture and sale of assault weapons to civilian customers
- Companies involved in the manufacture of tobacco products
- Companies that derive more than 10% of their revenue from oil and gas exploration, production, or refining activities. This includes revenues from oil sands extraction, oil and gas exploration in offshore Arctic regions, and shale energy exploration and/or production
- Companies that derive more than 10% of their revenue from thermal coal mining
- Companies that have their primary business activity in the oil & gas drilling, oil & gas equipment and services, integrated oil & gas, oil & gas exploration and production and coal & consumable fuels subindustries as defined by Global Industry Classification Standards
- Companies involved in predatory lending practices as defined by our ESG research provider
- Companies involved in the processing of whale meat.
However, our funds may hold some investment in an underlying fund that is not managed by us. These underlying funds are not subject to our responsible investment policy and may include investment in companies that we would normally exclude. This currently applies to the Other (alternative investment) asset class, which only excludes controversial weapons and tobacco. Asset exclusions also do not apply to derivative-based investments.
We incorporate environmental, social and governance factors into our investment analysis - both before we decide to invest in a company and then again during regular reviews. BT Funds Management (NZ) Ltd (BTNZ), our funds management arm, is a signatory to the UN-supported Principles for Responsible Investment.
All our investment funds are managed under our responsible investment policy.
Take a look at BTNZ's Responsible Investment Approach, otherwise you can see a comprehensive overview of our Responsible Investment Policy.