NEW ZEALAND - The guardians of the state superannuation fund have decided to divest NZ$37.6m (US$28.2m) of tobacco holdings, to better comply with the fund's responsible investment framework.
Adrian Orr, CEO, New Zealand Superannuation Guardians, said: “While our preferred approach to responsible investment issues is to engage with the company or sector, in the case of tobacco manufacture we determined that this would be in conflict to the long-term goals of a shareholder, and inconsistent with New Zealand commitments to international conventions, in particular the objectives of the World Health Organisation Framework Convention on Tobacco Control.”
Orr maintained the move was not indicative of future decisions.
He added: “This decision was based on product safety issues and New Zealand's commitment to specific international conventions.”
The fund was the founding signatory of the UN Principles of Responsible Investment (UNPRI).
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