Pie and ESG

Pie includes Environmental, Social and Governance (ESG) matters in our investment process because we believe ESG risks and opportunities affect the risk and return of investments.

We have developed an ESG Policy for deciding how we do this.

Our ESG Policy

Our ESG policy means we have an ESG committee comprised of people from across all Pie teams. Our committee has a gender balance and must comprise of 50% females.

The committee has input into how ESG matters are identified, researched and monitored in Pie’s investment process.

The ESG Committee has also agreed on what Pie will not directly invest in (our ‘exclusions’). The exclusions are part of the ESG Policy and apply to all Pie products. We have reviewed all Pie’s funds and none of them have direct investments contrary to our exclusions.

Click here to read the policy.

Our Exclusions

We think it’s important to be transparent about what activities we have excluded, and why, so investors can decide whether our approach aligns with their values.

tobacco

Tobacco

We exclude companies responsible for product development, manufacture, branding and sales of tobacco products. We do not exclude retailers or companies with indirect involvement, such as equipment or packaging suppliers.

This exclusion is based on New Zealand’s international commitments, such as the Framework Convention on Tobacco Control, and the ever- strengthening public stance globally and in New Zealand on controlling tobacco.

gambling

Gambling

We exclude companies offering gambling, including online gambling such as poker, sports or lottery betting. We do not exclude companies with indirect involvement, such as equipment suppliers.

This exclusion is based on Pie’s decision not to support gambling.

firearms

Firearms

We exclude companies that manufacture firearms. We do not exclude retailers or suppliers.

This exclusion is based on Pie’s decision not to support firearms manufacture, particularly of assault weapons for civilian use.

munitions

Controversial weapons

We exclude companies manufacturing cluster munitions, anti-personnel mines and Nuclear Explosive Devices (NEDs). We also exclude companies involved in simulated testing of NEDs. We do not exclude companies supplying components or other goods and services to these manufacturers.

This exclusion is based on international law, conventions signed by New Zealand such as the Cluster Munitions Convention and the Nuclear Non-Proliferation Treaty, and New Zealand’s broader public stance on nuclear testing. 

Pornography

Pornography

We exclude companies producing pornography and any company sourcing more than 5% of its revenue from distributing pornography.

This exclusion is based on Pie’s decision not to support pornography.

Drugs

NZ Illegal Drugs

We exclude companies cultivating, manufacturing, or supplying cannabis plants or products for recreational use. We do not exclude companies cultivating, manufacturing or supplying cannabis plants or products for medical, scientific or industrial purposes, where they are appropriately licenced or authorised to do so.

This exclusion is based on current New Zealand law and international drug control conventions to which New Zealand is a party. 

Carbon Risk

The Climate Friendly Fund prioritises investments in companies and exchange- traded funds with lower carbon risk. Meaning, companies with lower carbon emissions and fossil fuel reserves. This ‘screen’ is in addition to the exclusions in the ESG Policy.

We prefer companies that are well prepared for a low carbon economy, where emissions harmful to our climate are limited, taxed, or both. Companies can be well prepared because their activities:

  1. Actively reduce or prevent emissions (e.g. windfarms);
  2. Do not produce significant emissions (e.g. financial services companies);
  3. Do produce emissions, but it is clear they can and will adapt to conditions where this is very expensive or impossible (e.g. oil and gas companies with growing clean energy operations).


 

RIAA

 

We are proud members of the Responsible Investment Association of Australasia.

Read more here.