New Zealand’s $94 billion Superannuation Fund guidelines got a revamp last week. Policy documents and ESG investing protocols for the national fund have been reworked to align with the High Court decision in Nazzal v. Guardians of New Zealand. The case argued that investments in four companies violated the fund’s legislatively prescribed ESG guidelines. The court stopped short of barring the investments, but it did find that the fund’s policies were too vague. Those policies have now been reworked, as the fund managers state in a press release:
“General Manager Corporate Affairs Cristina Billett said a new standalone Sustainable Investment Policy and associated Procedures describe the policies, standards and procedures that underpin the Guardians’ sustainable investment activities.
The Guardians will review the companies named in the Nazzal proceedings using the updated policy framework and will provide a further update once that process is complete. Ms Billett said the assessment would require time for proper consideration.”
Management must now reassess the inclusion of these companies in light of their new Superannuation Fund guidelines. This is a reminder that policy language needs to identify clear standards and decision-makers. Policies do not enforce themselves, and unless they clearly identify the offices with the authority to make judgment calls, they remain vague and ineffective.
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