Tobacco Control
Background information for Tobacco Stocks Divestment
1 1.1 Responsible Investment Framework The Guardians of New Zealand Superannuation (Guardians) have made considerable progress during the year in the development of their responsible investment framework. The Guardians approved their revised Responsible Investment Policy, Standards and Procedures, to encompass both the Guardians ethical investment and voting requirements, with regards to the New Zealand Superannuation Fund (Fund). The Responsible Investment Policy, Standards and Procedures clarified how specific responsible investment issues, such as tobacco, would be considered in a manner that is consistent with the Guardians mandate. This is highlighted in the guidelines section 1.3 of the policy: The Guardians consider responsible investment (RI) to be part of evolving best-practice investment management. This RI policy has been developed to help the Guardians to manage the Fund in a manner consistent with: · · · Best-practice portfolio manageme nt; Maximising return without undue risk to the Fund as a whole; and Avoiding prejudice to New Zealand s reputation as a responsible member of the world community.
To the extent that it does not conflict with their obligations above, the Guardians, at their discretion, may consider other issues arising from the Fund s investments. In doing so, the Guardians may take into account factors including whether the issue is contrary to New Zealand law and New Zealand s international agreements, or is inconsistent with Crown actions. 2 2.1 Board s assessment and divestment decision As part of the Guardians on-going review of a range of issues, the Guardians analysed if the Fund s investments in tobacco companies was inconsistent with their responsible investment standards. This analysis (as outlined in sections 1.3 and 3.2 of the Responsible Investment Policy, Standard s and Procedures)1 included: · · · · · the nature of involvement by the company and the Fund; the
1 1.1 Responsible Investment Framework The Guardians of New Zealand Superannuation (Guardians) have made considerable progress during the year in the development of their responsible investment framework. The Guardians approved their revised Responsible Investment Policy, Standards and Procedures, to encompass both the Guardians ethical investment and voting requirements, with regards to the New Zealand Superannuation Fund (Fund). The Responsible Investment Policy, Standards and Procedures clarified how specific responsible investment issues, such as tobacco, would be considered in a manner that is consistent with the Guardians mandate. This is highlighted in the guidelines section 1.3 of the policy: The Guardians consider responsible investment (RI) to be part of evolving best-practice investment management. This RI policy has been developed to help the Guardians to manage the Fund in a manner consistent with: · · · Best-practice portfolio manageme nt; Maximising return without undue risk to the Fund as a whole; and Avoiding prejudice to New Zealand s reputation as a responsible member of the world community.
To the extent that it does not conflict with their obligations above, the Guardians, at their discretion, may consider other issues arising from the Fund s investments. In doing so, the Guardians may take into account factors including whether the issue is contrary to New Zealand law and New Zealand s international agreements, or is inconsistent with Crown actions. 2 2.1 Board s assessment and divestment decision As part of the Guardians on-going review of a range of issues, the Guardians analysed if the Fund s investments in tobacco companies was inconsistent with their responsible investment standards. This analysis (as outlined in sections 1.3 and 3.2 of the Responsible Investment Policy, Standard s and Procedures)1 included: · · · · · the nature of involvement by the company and the Fund; the
Cited: in: Preventing tobacco use among young people. A report of the Surgeon General US DHHS, Atlanta, 1994 8 9 10 Various from Tobacco papers published during trial litigation on www.tobacco.org & Report & Recomm endations of the Ad Hoc Advisory Committee on Tobacco Investments; University of Michigan; March 17, 2000