What the…impact? How our Positive Impact Fund advances social and environmental goals.
21 November 2022 / Published in Your MoneyIn June this year, we dialled up the impact of our Positive Impact Fund as part of our responsible investment commitment to offer innovative products. The Fund is designed to deliver positive impacts by advancing global social and environmental goals in line with the United Nations Sustainable Development Goals (UN SDG).
With these changes the Fund’s holdings look a little different, so we want to tell you a little more about the companies the Fund is now invested in and the UN SDG they align to.
We're taking a deeper look at the below companies in the equities portion (60%) of our Fund:
- APM Human Services International Ltd
- Ørsted
- Genus Plc
APM Human Services International Ltd
Target 8.5: Achieve full and productive employment and decent work for all women and men, including for young people and persons with disabilities, and equal pay for work of equal value.
APM Human Services serves 660,000 unemployed people with mental-health challenges, disabilities, veterans returning to civilian life and people emerging from the criminal justice system.
Operating in 800 locations across 10 countries including New Zealand, the company seeks to "empower people to realize their ambitions and aspirations through achieving sustainable employment and economic independence."
Ørsted
Target 7.2: Increase substantially the share of renewable energy in the global energy mix.
Ørsted is a renewable power developer that is a first mover in the offshore wind industry. Ørsted now has 13GW of installed capacity, including the world's largest operating wind farm with 174 turbines and 1.218MW capacity. In 2021, the company avoided 15.1 million metric tons of emissions.
Ørsted's innovation has reduced the price of offshore wind, as the company is able to generate renewable electricity to a price per megawatt hour that is lower than newly built fossil-fuel power generation.
Genus Plc
Target 2.1: End hunger and ensure access by all people, in particular the poor and people in vulnerable situations, including infants, to safe, nutritious and sufficient food all year round.
Genus is an animal genetics company whose mission is to help farmers breed healthier livestock that produce more milk and protein across 80 countries - including the largest pig breeder in New Zealand1. Genus can identify genetic characteristics such as reduced susceptibility to disease and higher fat or protein content. By selling best-of-breed semen, embryos and livestock, Genus helps dairy and livestock farmers raise healthier animals that deliver improved yields.
Genus also aims to reduce emissions by driving porcine and bovine genetic developments that improve feed efficiency, which reduces the feed required per animal without impacting the productivity of the animal, leading to a reduction in emissions.
What about the other Sustainable Development Goals?
The UN SDG are made up of 17 goals and 169 targets to achieve peace and prosperity for people and the planet. Our Fund aligns with these goals and targets, but it doesn't mean it will be equally targeting or supporting them all at once.
Our goal for the Fund is to invest in companies that advance these social and environmental goals, as well as providing financial returns. This means our fund manager carefully selects equities that meet both. The income portion of the Fund holds green bonds that are invested in environmental projects, like renewable energy - we'll discuss this in our next blog!
[1] Source: https://cms.genusplc.com/pic-nz/about-us/
Company information sourced from BlackRock Global Impact Report, May 2022.
Reference to the names of each company mentioned in this communication is merely for explaining the investment strategy and should not be construed as investment advice or an investment recommendation of those companies.
Interests in the ASB KiwiSaver Scheme and ASB Investment Funds (Schemes) are issued by ASB Group Investments Limited, a wholly owned subsidiary of ASB Bank Limited (ASB). ASB provides administration and distribution services for the Schemes. No person guarantees interests in the Schemes. Interests in the Schemes are not deposits or other liabilities of ASB. They are subject to investment risk, including possible loss of income and principal invested. For more information see the ASB KiwiSaver Scheme Product Disclosure Statement or the ASB Investment Funds Product Disclosure Statement available from this website and the register of offers of financial products at www.disclose-register.companiesoffice.govt.nz (search for ASB).
