The New Zealand investment industry has an important role to play in tackling poverty through responsible investment policies and public reporting, said Oxfam New Zealand Executive Director Barry Coates at the Responsible Investment Association Australia (RIAA) briefing in Auckland today.
| “Investors have a critical role to play in the fight against poverty. It’s not just a question of morals, but smart business, as their investments are increasingly exposed to emerging markets.” — Barry Coates, Oxfam New Zealand’s Executive Director |
The New Zealand investment industry has an important role to play in tackling poverty through responsible investment policies and public reporting, said Oxfam New Zealand Executive Director Barry Coates at the Responsible Investment Association Australia (RIAA) briefing in Auckland today.
“Responsible investment in New Zealand is approaching take off, and is set for rapid growth,” said Coates. “Oxfam is pleased to be involved in making that happen.”
At the briefing, Coates introduced the findings of a recent Oxfam report exploring the role the investment industry could play in reducing poverty. Better Returns in a Better World is the result of a two-year initiative with over 80 influential investors across Europe and the United States.
“Investors have a critical role to play in the fight against poverty. It’s not just a question of morals, but smart business, as their investments are increasingly exposed to emerging markets and the challenges they face,” said Coates.
A series of barriers to greater investor engagement in poverty reduction are identified in the report, including lack of demand and oversight by asset owners, an overwhelming focus on short-term financial performance and lack of transparency in the investment sector as well as the absence of clear, agreed standards on poverty and development-related issues.
“The reality is that investors are more likely to take poverty and development issues into account when there is a clear consensus on expectations of companies’ behaviour. The absence of regulatory or normative frameworks must be overcome if we expect investors to successfully address poverty-related issues in their investment decisions and engagement with companies,” said Rory Sullivan, the investor lead on the project and co-author of the report.
The report provides a set of practical recommendations to help investors maximise their contribution to poverty reduction. These include working alongside civil society and other experts to create analytical tools that integrate development issues into their investment analysis, and to take greater ownership responsibility and a more active role in ensuring that companies improve their performance and reporting on poverty, development and other social and environmental impacts.
The report acknowledges that investors can only do so much on their own, and that governments also have a critical role to play, not just in establishing appropriate regulations.
“Governments should show leadership by requiring public asset funds, including public pension funds, consider their impact on reducing poverty,” said Coates.
