Better returns for business.pdf - Oxfam New Zealand

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THIRTY TWOTO CREATE DEMAND AND IMPROVE TRANSPARENCY:We have two recommendations for investors1That all institutional investors(asset owners, insurancecompanies, asset managers,etc.) develop, implement andreport on their responsibleinvestment strategies, witha particular focus on howthey will address poverty anddevelopment issues withintheir overall approaches toresponsible investment.2That asset owners explicitlydemand and reward investmentmanagers that take particularlyproactive approaches toresponsible investment.TO CREATE DEMAND AND IMPROVE TRANSPARENCY:We have two recommendations for governments3That governments introduceregulations that require pensionfunds and other asset ownersnot only to have a policy onresponsible investment, but alsoto publish details of how theyintend implementing their policy,and report regularly on the social,environmental and financialoutcomes that result from theimplementation of their policy.4That governments makeresponsible investment anintegral part of how the financialassets they control (e.g. statepension funds, sovereign wealthfunds) are run.
THIRTY THREEInstitutional investors’ approach to responsibleinvestmentAll asset owners and asset managers shouldadopt and implement a responsible investmentpolicy that sets out their views on the relevanceof environmental, social and governance issuesto their investments and details how theypropose to implement this policy. This requiresthat they:• Define the outcomes (both financial, and socialand environmental) they expect to achieve.This may require the development of supportingpolicies on specific corporate governance,environmental and social (including povertyreduction and development) issues.• Commit themselves to engage and vote actively(as appropriate) on environmental, social andgovernance issues.• Commit themselves to integrate considerationof all relevant environmental, social andgovernance issues in all investment decisionmaking• Assign senior management responsibility for theimplementation of their responsible investmentpolicy.• Allocate resources for the implementation of thepolicy.• Implement and monitor the implementation ofthe policy,• Report annually on the implementation of thepolicy and progress made.There is no standard format for responsibleinvestment reporting but, as a minimum,institutional investors should provide:• Their responsible investment policies, and thestrategies (investment integration, engagement,collaboration, voting) used to implement thesepolicies.• A description of how environmental, socialand governance issues are taken into accountin their investment processes, includingdetails of the key areas (topics) that havebeen researched and how this research hasinfluenced investment decisions.• A description of the engagement activitiesthat have been carried out, including: (a)a description of engagement process andstrategies used; (b) a list of engagementtopics and the objectives of the engagement;(c) quantitative and qualitative informationon engagement, including the number ofcompanies engaged with, the forms ofengagement (letter, face-to face meeting, groupmeeting), the outcomes sought and the changesachieved.• A description of the voting process, includingdetails of the total number of votes cast andthe number of votes for, abstained and againstmanagement. Reporting should includecommentary on the reasons for abstentions,votes against management or otherwisecontroversial votes, and should also commenton how, if at all, the voting decision influencedcompany management.• Details of the collaborative initiativesparticipated in and the outcomes achieved fromthese initiatives.
Page 4: 1. Introduction“We can’t afford
Page 7 and 8: SEVENThe fact that the project was
Page 9 and 10: NINEOxfam is a rights-based organiz
Page 11: ELEVENWhile the debates around acce
Page 15 and 16: FIFTEENRole 2: Stock selectionInves
Page 17: SEVENTEENRole 4: Influencing public
Page 21 and 22: TWENTY ONE4.1 Introduction4.2 Struc
Page 24 and 25: TWENTY FOURThe lack of transparency
Page 26 and 27: TWENTY SIXBox 5. Integrating living
Page 28 and 29: TWENTY EIGHTConsensus around perfor
Page 30 and 31: 5. Conclusions and recommendations
Page 34 and 35: THIRTY FOURInstituting proper incen
Page 36 and 37: THIRTY SIXGovernment leadership of
Page 38 and 39: THIRTY EIGHTThe other issue that wa
Page 40 and 41: FORTYAs a final reflection on the q
Page 42 and 43: FORTY TWOCivil society organisation
Page 44 and 45: FORTY FOUREndnotes1 See www.busines
Page 46: FORTY SIXOxfam acknowledges the con

Better returns for business.pdf - Oxfam New Zealand

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