What is stewardship?
Stewardship is the responsible allocation and management of capital by investors – including asset owners and fund managers – to create and preserve long-term value for current and future generations. Stewardship also promotes sound investor and issuer governance, and business practices that lead to sustainable outcomes for our environment, society, and economy.
Stewardship encapsulates the values of accountability, transparency, fairness, and responsibility. Stewardship encourages investor accountability to those whose money they invest – their clients and beneficiaries – and improved long-term risk-adjusted returns. Stewardship through the relationship between asset owners and asset (fund) managers is also important.
Stewardship includes monitoring and engaging with issuers and holding them to account on material issues, including through voting, and then publicly reporting on the outcomes of these activities. It also includes collaboration and advocacy to achieve sustainable outcomes.
Stewardship by investors puts a focus on the long-term health of the capital markets, as it focuses on long-term value creation for current and future generations, and sustainable outcomes for our environment, society and economy. For this reason, this Stewardship Code recognises the importance of incorporation of material environmental, social and governance (ESG) matters, and consideration of a Te Ao Māori worldview.
