The NZ ethical investing community’s premier event is the Responsible Investment Association of Australasia (RIAA) annual conference. This year’s in mid-September saw a big presence from the Ethical Investing team – as attendees but also as presenters.
RIAA is the peak body for those committed to ethical investment, from advisers and fund managers to consultants, trusts and others. Each year its conference goes from strength to strength, reflecting the continued rise in commitment to investing responsibly. For us as an advisory firm, it gives us an opportunity to not only learn, but also to spend time with “like-minded people”. It’s particularly important for advisers – there are not many advisory firms in New Zealand that are truly committed to, yet alone understand, ethical investing.
Key things we learned:
- NZ is at the forefront of ‘climate-related disclosure’ – we really are pioneers worldwide. That does mean there aren’t any well-trodden paths for sustainable companies to follow, but it also means we can grow and learn together.
- Nature-related disclosures are the next big area of focus for ethical and responsible investing. This is still being developed but will include how companies are measuring their impact on the natural world, and what they’re doing to support sustainability as well as mitigate harmful activities.
- Rod Carr, outgoing head of the Climate Change Commission, provided very succinct and challenging observations on various initiatives NZ governments and firms have taken to reducing our emissions. In his view, achieving “net zero” through carbon offsets is a poor way to decarbonise, as it lets us buy our way out of trouble without actually solving the real challenge.
- Impact investing – small-scale investment funds targeting specific social and environmental problems – are rapidly growing. It’s an area that’s long been of interest to us, but to date it’s been difficult for us to recommend any suitable investments for clients.
Ethical Investing’s advisers Peter Lee and Mark Holtom were each a panelist in two breakout sessions aimed at financial advisers. This reflects our passion to share our experience, to help other advisers become more confident in ethical investing advice.
The ‘Getting the Facts’ session Mark spoke at saw three advice firms describe how top advisers learn about their clients’ ethical preferences, a process that is educational for the client as well as vital information for our planning.
Later, Peter acted as both interviewer and interviewee with RIAA’s head of certification, as RIAA brings on board a revamped and revised certification process for managed funds. By having three levels of certification, it means advisers and their clients can have an independently-based and more nuanced view of RIAA certified funds and when each might be appropriate.
