What makes this Stewardship Code unique to Aotearoa New Zealand
This Code has been industry-driven. The principles were mapped against existing regulatory requirements and key international codes (including the UK 2020 Code), and took into consideration local market and cultural context.
Figure 1 outlines where investment stewardship sits within the current investment landscape. This Code is unique to Aotearoa New Zealand because:
it has a wider reach and there are multiple opportunities for stewardship in investment management. Most international codes focus on stewardship only as between an asset owner or fund manager and an issuer, whereas this Code includes consideration also of clients, beneficiaries, and policy makers.
it gives more prominence to the importance of sustainable outcomes for our environment, our society, and our economy – in that order. Some Codes focus on financial value. This Code recognises the importance of a wider definition of value by elevating incorporation of ESG into a self-standing stewardship principle, and the definition of value to be determined by the investor.
signatories are encouraged to consider Te Ao Māori and other cultural aspects when applying the principles of the Code. In addition to the focus on sustainable outcomes and long-term value for current and future generations, further specific examples of Te Ao Māori include the integration of the values of clients and beneficiaries into investment beliefs (Principle 1), having a clearly defined purpose for the investor (Principle 1), ensuring stewardship supports equitable and sustainable outcomes for tangata whenua and/or indigenous peoples, and the incorporation of Te Ao Māori and the principles of kaitiakitanga, manaakitanga, whanaungatanga, and rangatiratanga into stewardship (Principle 3).
Signatories need to be cognisant of, and are encouraged to adopt, the framework outlined in He Ara Waiora (Principle 3).it is simpler, with a focus on delivering the goals of effective stewardship. The Code merges monitoring of, and engagement with, issuers. Other Codes separate these functions.
there is an emphasis on collaboration and advocacy for change. This element has been elevated into a standalone principle.
there is recognition of the need to educate, learn and improve. The Code acknowledges the (current) capacity and capability of the industry and emphasises the importance of learning and improving.
