Investment in unethical businesses falling
As KiwiSaver hits $111 billion in funds under management, that’s $100 billion of KiwiSaver funds, FMA general counsel LIam Mason told attendees at the Responsible Investment Australasia Association NZ last month.
ESG and ethical investment aren’t the same, as outlined by Pathfinder’s John Berry. An ESG rating doesn’t measure how a company contributes to a better society and environment but how environmental, social and governance issues could pose a significant risk to a company’s bottom line.
For example British American Tobacco, last year, scored 81 out of 100 in the 2023 S&P Global Corporate Sustainability Assessment, and has been included in the DJSI European Index 22 years in a row.
However the positive news is that ethical investing website Mindful has tracked significant changes in the proportion of investment in unethical issues of KiwiSaver and managed fund investment, over the past six years.
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