ASB Community Trust, Australasia’s biggest philanthropic body, is
to use the ten principles of the United Nations Global Compact as the
basis for a new socially responsible approach to its NZ$1.1billion ($762million, £390million) assets.
The
trust, which is based in Auckland, recently signed up to the
Compact, committing itself to the principles on issues such as human
rights, labour, the environment and
corruption. But it will also now use the principles to guide its
research into the performance of companies in which it might invest.
Jennifer Gill, the trust’s chief executive, said: ‘We want to
demonstrate leadership in this important area of investment. It’s about
advancing universal principles and responsible corporate citizenship to
make the global economy more sustainable and inclusive.
‘This is a process of engagement. We are not about to divest ourselves
of major investments overnight. Where there has been a breach of the UN
guidelines we will be encouraging dialogue and discussion. As long as a
company is talking about the issue and is seen to be making progress in
remedying it, we will continue to hold them.
ASB is resaerching more than 2800 companies, and all companies with allegations against them will be
contacted for their response.
The trust has chosen the Centre for Australian Ethical Research and
Ethical Investment Research Services (EIRIS) as its partner to monitor
companies in its investment portfolio.
The centre, in the Australian capital Canberra, belongs to a global
alliance of monitoring agencies and represents the London-based EIRIS,
which has 20 years’ experience of responsible investment research in
the Asia Pacific area, Europe, the UK and the US.
The trust, which distributes grants of $55m a year to charities in
Auckland and Northland, does not expect its SRI policy to affect its
return, which has been 8.7 per cent a year since 1994.
