Sustainability is an integral part of both our investment process and our team values.
ESG (environmental, social and governance) considerations play a central role in Harbour’s investment philosophy.
Harbour is a market leader for integrating ESG research into our investment process.
ESG considerations are important for two reasons:
As a responsible corporate citizen, with a fiduciary duty to our clients, we have an obligation to consider all types of risk. This includes the environmental, social and governance risks associated with the companies we invest in.
As active investors, we believe that ESG risks and opportunities are often not fully reflected in the market price for securities. We are able to use this knowledge to invest to achieve better outcomes for our clients.
At Harbour, we employ a strategy of integration and company engagement. This means our team researches all the companies we invest in and actively checks for any environmental, social or governance (ESG) risks that may apply to them. It helps our Portfolio Managers develop an understanding of each company, and influences not only whether we invest in companies, but also how much. It helps us to unearth companies which may be great opportunities for long term growth, as well as companies with potentially hidden risks.
We are able to use our role as a shareholder to engage with company leadership, highlight any concerns we may have and use our influence to encourage better behaviour.
Our annual Corporate Behaviour Survey researches how companies rate on issues like:
Environmental policies and risk management
Health and safety
Executive remuneration and incentives
Harbour’s engagement program not only focuses on constructively working with companies in our investment universe, but also contributing to public policy/regulatory consultations to positively influence policy settings relating to ESG considerations.
|Date||Link to submission||Submitted to|
|Dec 2019||Climate change-related financial disclosure submission||Ministry for the Environment & Ministry for Business, Innovation and Employment|
|Oct 2019||Submission on green bonds and other responsible investment products||Financial Markets Authority|
|Aug 2019||Clean Car Standard & Clean Car Discount submission||Ministry of Transport|
|Jul 2018||Zero Carbon Bill Submission||Ministry for the Environment|
|Jun 2018||Response to NZX Listing Rules Review, second round||NZX|
|Nov 2017||Response to NZX Listing Rules Review||NZX|
|Oct 2016||Submission to NZX Corporate Governance Code Review||NZX|
We demonstrate our responsible investing philosophy and fiduciary duty by keeping active in our investments through our extensive engagement programme and proxy voting process.