ANZ Investments releases its first annual climate statements

At ANZ Investments we are advocates of responsible investment.

Responsible investment is a broad-based approach to investing which factors in people, society, and the environment, along with financial performance, when making investment decisions.

When we consider whether to invest in a company, we don’t just look at its financial performance. We also look at the company’s environmental, social and governance (ESG) performance, because we believe these factors have a big impact on long-term returns.

We think that’s in everyone’s best interests.

Climate Related Disclosures

The New Zealand Government now requires around 200 large companies and financial institutions, including ANZ Bank and ANZ Investments, to publish information relating to their climate strategy and the related risks and opportunities.

These are known as Climate Related Disclosures (CRDs).

We welcome this.

The aim is to require disclosure of climate related risks and opportunities, so that this information can be used in decision making consistent with a transition to a low-emissions, climate-resilient future.

We believe the disclosures will provide valuable insights for our customers and other stakeholders.

On the ANZ website we have published CRDs for the following schemes, covering the year ended 31 March 2024:

·       ANZ KiwiSaver Scheme;

·       ANZ Default KiwiSaver Scheme;

·       OneAnswer KiwiSaver Scheme; and

·       OneAnswer Single-Asset-Class Funds.

They can be found under the Climate change section of the Responsible Investing page.

Our Climate Related Disclosures demonstrate how we’re considering short, medium and long-term climate-related risks and opportunities when we make our investment decisions.

Climate risks include potential negative impacts, either physical (like extreme weather events) or transition risks (like policy changes as we transition to a low-emission economy).

We report on four areas: our governance, strategy, risk management and metrics & targets.

The CRDs allow our investors and other stakeholders to better understand the potential impact of climate change on our investment funds.

Our Climate Related Disclosures demonstrate how we’re considering short, medium and long-term climate-related risks and opportunities when we make our investment decisions.

Our Commitment

ANZ Investments has set a ‘Net Zero 2050’ goal to reach net zero greenhouse gas emissions by 2050 across all our funds under management (although not on a fund-by-fund basis). ‘Net zero’ means cutting greenhouse gas emissions to as close to zero as possible, without any remaining emissions re-absorbed from the atmosphere.

Our stewardship approach involves using our influence as an investment manager to help shape the behaviour and climate impact of some of the underlying companies our funds are invested in.

The aim is to encourage the companies we invest in to align their business with the transition to net zero greenhouse gas emissions by 2050.

What’s the difference between CRDs and ESG risks?

Our Responsible Investment Framework is the overarching framework ANZI uses to identify, assess and manage environmental, social, and governance (ESG) risks throughout our funds’ investment processes. Climate change is one element of the ‘E’ in ESG.

Our framework has three core pillars:

1.    Exclusions: We exclude companies that generate more than 10 percent of their revenue from the extraction or production of unconventional oil and gas or the mining of thermal coal.

2.    ESG integration: Integrating both financial and non-financial factors in the way we research, select, and manage investments in-house and through our external investment managers.

3.    Stewardship: as discussed above, we demonstrate our stewardship approach through engagement with the companies we invest in, directly and indirectly, and proxy voting.

For more information, take a look at our Responsible Investment website.