Stewardship Code for Aotearoa New Zealand

New Zealand’s investment community has developed a Stewardship Code for Aotearoa New Zealand. Transitioning our financial system strategically positions Aotearoa New Zealand both domestically and internationally, where international markets are rapidly embracing similar recommendations. This work directly responds to a recommendation in the Sustainable Finance Forum Roadmap for Action chapter on Governance.

AT A GLANCE: The principles of effective stewardship in Aotearoa New Zealand

 

Stewardship Code Aotearoa New Zealand


Our collective journey towards better stewardship


The September 2022 version of the Stewardship Code is Aotearoa New Zealand’s first Stewardship Code.  As Founding Signatories improve and evolve the Code, it is expected the mechanisms for governance over the Code also evolve.  

Initially, Signatories will adopt the Code on a ‘Comply or Explain’ basis.  This is the most commonly applied form of soft law for inaugural Codes.  It allows Signatories to apply the Code in a manner most appropriate to their circumstances.  ‘Comply or Explain’ sets a higher bar than a voluntary code by virtue of the need for Signatories to explain reasons, robustly and publicly, for non-compliance (for example, because the Signatory does not have voting rights for a particular asset class, or that the Signatory is working towards complying with the requirement but does not fully meet that requirement at present, etc). 

As time progresses, application of the Code is anticipated to move to ‘Apply and Explain’, as indicated in the below indicative timeline. 

2021 - CONSULTATION

  • Raise awareness

  • Industry buy-in and agreement

  • Code Development Committee

2022 - SETTING THE PRINCIPLES | COMPLY OR EXPLAIN

  • First Aotearoa New Zealand Stewardship Code

2023/2024 - LAYING THE FOUNDATIONS | COMPLY OR EXPLAIN

  • Code Adopters and Code Governance Committee

  • Signatories reports

2025/2026 - deepening the principles | Comply or explain

  • Inclusion of service providers

2027 - embedding the behaviours | Apply and explain

  • Making stewardship meaningful and purposeful

  • Promoting cultural and structural change