Frequently Asked Questions (FAQs)

This page provides a summary of frequently asked questions about the Aotearoa New Zealand Stewardship Code.


 

FAQs


What is the Stewardship Code?

The Aotearoa New Zealand Stewardship Code is an industry led framework that supports investors to partner with companies to create long term value by responsibly managing their investments. It sets out how institutional investors can best work with companies to minimise risk and maximise resilience in order to increase environmental, social and economic value.

What is investor stewardship?

Stewardship is about creating and preserving long-term value for current and future generations by enabling responsible management and allocation of capital. It’s sometimes referred to as ‘active ownership’. Active owners use various levers to influence a company towards more sustainable outcomes, including voting, engaging directly with the company, filing shareholder resolutions, or advocating for policy changes.  

Stewardship promotes sound investor and corporate governance and business practices that lead to both value and sustainable outcomes for our environment, society, and economy. 

What is the value of investor engagements?

Investor engagements are an important lever for investors to influence and manage risks and opportunities across companies they invest in. Rates of investor engagement have increased in recent years as asset management firms become dominant owners of listed companies in particular. These engagements support investors fiduciary obligations, while meeting regulator, client and societal expectations by contributing to long term value protection and creation.  

Investors should consider laws and regulations within markets they’re engaging in, particularly in relation to collaborative engagements. For more information on how New Zealand competition laws relate to investor engagements, see this legal opinion from Chapman Tripp.

What difference do engagements make?

Effective engagements can significantly alter the way businesses manage certain risks and contribute to long term value creation. Effective engagements take a strategic approach to influence financially material risks, doing so constructively, with an outcomes focus and clear escalation plans where required.

For examples of investor engagement reporting, see page 9 of our 2025 Stewardship Annual Review here.

Who can be a Code signatory?

Asset owners, asset / fund managers, providers of discretionary investment management services, and investment service providers. Signatories become part of a cohort of investors who are committing to engage with companies on ESG matters in order to maximise long term value. There are already signatories managing majority of the Assets Under Management in New Zealand. 

We are currently accepting applications to become a Code Signatory. As a Code Signatory, you will be a part of a group of leading NZ investors all dedicated to engaging with companies to maximise long term value. You will be supported in this through participating in regular webinars and events, having access to exclusive forums, and being engaged in industry and policy conversations. If you’re interested in becoming a signatory, please contact jackson@stewardshipcode.nz. 

Why are firms becoming signatories?

The Code provides the following to signatories:

  • Capability: The Code assists signatories to lift their stewardship capability in a number of ways, including Stewardship Masterclasses and providing private feedback on stewardship reports 

  • Connect: Signatories are invited to a variety of signatory only forums alongside other asset managers, owners and service providers to connect and stay across key industry activity 

  • Influence: Signatories are key stakeholders in shaping the growth of stewardship practice and guidance in New Zealand  

  • Leadership: Signatory status demonstrates intent to be a stewardship leader, meeting client & regulator expectations, and bringing associated reputation and brand benefits 

Strong stewardship helps investors: 

  • enhance their approach to responsible ownership 

  • work together with companies, rather than simply divesting 

  • foster constructive relationships with issuers 

  • hold issuers to account over their sustainability claims 

  • encourage issuers’ transition to long-term value creation and protection 

  • support sustainable outcomes for the environment and society. 

How does the NZ Code differ from other Codes around the world, including the UK Code?

Development of the NZ Code was heavily informed by other codes around the world, particularly the UK Code. The NZ Code is generally aligned with the requirements of the UK Code, with an emphasis on the following key areas:  

  • A focus on the change that occurs due to the stewardship, as opposed to focusing only on disclosure of activities 

  • Wide reach, capturing stewardship between investors/funds, clients and beneficiaries, issuers, and policy makers

  • Encouraging consideration and inclusion of Te Ao Māori 

  • Strong prominence to the importance of sustainable outcomes for our planet, people and economy 

  • Collaboration and advocacy for change, given the small size of the market 

  • Learning and improving, as opposed to strict compliance

Do we need to incorporate Te Ao Māori into our stewardship processes before becoming a signatory?

The NZ Code includes several references to the alignment between Te Ao Māori and stewardship, and encourages consideration of Te Ao Māori, including Te Tiriti o Waitangi, within stewardship policies and ESG processes. Doing so is encouraged, rather than required, and it’s acknowledged that understanding and incorporating Te Ao Māori into investment processes is a journey and can take time.  


What happens once we become a signatory to the Code?

Signatories are expected to incorporate the Code Principles into their stewardship processes where possible (noting the ‘comply or explain’ nature of the Code currently). To support with this, Signatories to the Code will have access to a variety of tools and events to better understand stewardship and deepen the nature of their stewardship activities. This includes access to a signatory only forums, and regular calls and events with international stewardship experts.