Just prior to Christmas 2024 a briefing was organised by The Ethics Conversation founder, Jane Arnott to enable high profile New Zealand fund managers in the ethical and responsible investing space to learn about human rights issues such as wage gaps and the benefit of greater transparency and more detailed reporting within the NZX.
Saunoamaali’i Dr Karanina Sumeo Acting Chief Human Rights Commissioner, Acting Race Relations Commissioner and Equal Employment Opportunities Commissioner met with invited fund managers including representatives from Harbour Asset, Mint Asset, Pathfinder and others.
The trigger for this was the concern felt by The Ethics Conversation that greater scrutiny of and depth in reporting around wage gaps within NZX listed companies would ensure data and insights that better reflected a company’s commitment to fairness – in promotion, recruitment and the monitoring of wage gaps.
According to Barry Coates, director and founder, Mindful Money, human rights considerations are a priority for ethical and responsible investors. While Modern Slavery legislation has yet to be passed in New Zealand it has a strong focus on supply chains - external to a company’s operations. However there is still more that can be disclosed about internal processes and outcomes.
Dr Sumeo highlighted that NZ’s Human Rights legislation already contains provisions to prevent wage gaps. However the legislation is poorly enforced and relies on speaking up to the Commission. Given that many of the people who experience discrimination are vulnerable, young and /or may have experienced disadvantage and do not have networks that could assist - the incidence of discrimination is often unreported.
Companies that present themselves as having no human rights failings, or who are being included as having human rights credentials must be encouraged to provide data and insights to substantiate this claim.
Fund managers that state they take account of ESG should be able to provide data and insights that substantiate their perspectives. Only when questions are asked will effort be directed.
The Ethics Conversation, having started this awareness raising remains positive that through the Responsible Investment Association of Australasia’s (RIAA) Aotearoa Collaborative Working Group (ACWG) there will be opportunity to explore this further through the Aotearoa NZ Stewardship Code. Special thanks go to Sue Walker, Harbour Asset, Rachel Tinkler Mint Asset Management and Lily Richards Pathfinder for their enduring support.
