We integrate environmental, social and governance (ESG) factors into our investment management process. We do this because we believe that these factors are some of the drivers of long-term investment risks and returns.

When assessing an investment, we look at a range of financial and non-financial criteria. Financial criteria can include balance sheet strength, valuation or future earnings. Non-financial criteria can include management strength, industry composition, environmental factors (e.g. pollution, resource usage, climate change), social factors (e.g. human rights, health and safety, diversity) or governance factors (e.g. corruption, transparency, board structure).

For the avoidance of doubt, we do not make investments in companies or industries based solely on ESG factors.

Companies or industries that have any ESG issues are subject to further review. These reviews cover both existing and prospective investments and consider some or all of the following:

  • global best practices
  • our view on the expectations of our investors or clients
  • the impact of an exclusion on returns
  • the severity of any ESG related breaches or actions, or
  • the likely success of an alternative course of action (for example, engagement).

Depending on the results of our review we might continue to hold, review on a periodic basis, divest, or exclude the company or industry as an investment.

If we buy units in a fund that isn't managed by us, our investment might be exposed to companies we would ordinarily exclude. This possibility is factored into our decision to buy any such units.

ANZ Investments is the issuer and manager of the ANZ KiwiSaver Scheme, the OneAnswer KiwiSaver Scheme the ANZ Default KiwiSaver Scheme, the OneAnswer Multi-Asset-Class Funds, the OneAnswer Single-Asset-Class Funds and the ANZ Investment Funds.