We undertake in depth analysis of the Environmental, Social and Governance (ESG) credentials of every company we invest in.
We believe we can make the biggest impact by engaging with companies to address sustainability issues and drive positive change.
Companies that do not meet our minimum standard of sustainable practices are added to our exclusion list.
As active managers, we have always undertaken detailed analysis to find the best companies, including their environmental, social and governance performance. This work is at the core of our investment decision-making process and we analyse the ESG credentials of every company we invest in.
As a result of this analysis, we can actively engage with each company to do better, improve their environmental and social impact and increase transparency.
We believe we can make a greater impact through engagement. While excluding certain investments avoids harm, it can ignore the complexity of ESG issues and miss some of the greatest opportunities to progress.
Sustainability is a team sport; we will not reach our sustainability goals unless all companies transition to a more sustainable future. Information detailing our recent engagement activity and outcomes is summarised in Milford Asset Management: Engagement Activity and Outcomes.
We have three layers of engagement with the companies we invest in:
As part of our ongoing communication with company management teams and Boards, providing regular feedback on their approach, actions and reporting.
Via letters and meetings with Boards and management in response to particular events, for example major breaches of environmental or social requirements.
Through proxy voting; where we will vote against directors to highlight our concerns. We share our concerns with the Board and management.
More details about Milford’s proxy voting activity are available here. Note that holdings voted in person at AGMs are currently disclosed as “unvoted”. Please contact us if you require further information.
Active engagements for the 12 months to the end of September 2023
Proxy votes cast
The Responsible Investment Association Australasia (RIAA) has named Milford as a Responsible Investment Leader in the Responsible Investment Benchmark Report Aotearoa New Zealand 2023. These Leaders are Investment Managers who demonstrate leading practice in their commitment to responsible investment, and their supporting integration and activity. Milford is very proud to have been named a Leader for the second year in a row. The report noted that Responsible Investment Leaders explicitly and systematically consider ESG factors in the allocation of capital, and are decidedly transparent, reporting publicly not just on their activities to improve environmental and social sustainability, but also the outcomes they achieve.
The Milford Kiwisaver Active Growth Fund has been certified by the Responsible Investment Association of Australasia (RIAA). To achieve certification, RIAA has verified our ESG processes, systems and performance and we have achieved the strict operational and disclosure practices required. We have undertaken this process to demonstrate our commitment to sustainable investment as we strive to play our part in the transition to a more sustainable future. For more information, please see www.responsibleinvestment.org
Milford is proud to become a participant of Climate Action 100+, an investor-led initiative to ensure the world’s largest corporate greenhouse gas emitters take necessary action on climate change. Climate Action 100+ is made up of 700 global investors who are responsible for more than $68 trillion in assets under management across 33 markets. These large investors are ensuring the businesses they invest into cut emissions to help achieve the goals of the Paris Agreement and accelerate the transition to net-zero emissions by 2050 or sooner.
At Milford, we believe we are best able to contribute to the solution through engaging with the companies we own to improve their sustainability actions, targets and disclosure. We are excited to do this alongside likeminded global investors to help accelerate the transition to a more sustainable future.
Milford has become a Founding Signatory to the New Zealand Stewardship Code. The Code is an industry-led framework developed to define and promote sustainable investment management practices and our participation signifies our commitment to the code’s nine principles to achieve its three interconnected goals of effective stewardship: to create and preserve long-term value for current and future generations; to ensure the efficient management of capital whilst considering the best interests of clients and beneficiaries, and to contribute towards achieving sustainable outcomes for our environment, society, and economy.
Grace O'Hanlon, Sustainable Investment Analyst, discusses the high risk of modern slavery in global supply chains.
Nick Morgan, Sustainable Investment Analyst, shares his analysis of battery recycling in the transportation sector.
Milford made a public commitment to explicitly and consistently incorporate environmental, social and governance factors into our investment decision making by becoming a signatory to the United Nations Principles for Responsible Investment (UNPRI). Full details are available in Milford’s UNPRI Transparency Report.
Milford is also a member of the Responsible Investment Association Australasia (RIAA) and a founding signatory to the New Zealand Stewardship Code.
Milford has been named a Responsible Investment Leader by the RIAA in their annual Responsible Investment Benchmark Report Aotearoa New Zealand for both 2022 and 2023.
There are more details about Milford’s approach to sustainable investing below. For additional information, please see our Sustainable Investment Statement.
*In 2020, Milford was awarded an A rating on four UNPRI modules including our overall Strategy and Governance and ESG Incorporation.
There are companies we simply will not invest in. These include companies that produce a
range of weaponry and manufacture tobacco or recreational cannabis.
We will also not invest in companies that fail our own ESG analysis or will not engage when we have identified the need for change.
Milford can use indirect investments for market exposure and hedging purposes. We monitor the extent to which these indirect investments have exposure to companies on the Milford ESG Exclusion List with a view to ensuring the exposure is no more than 1% in aggregate across all Milford funds.
In addition to our sustainable investing philosophy and process, our core purpose includes making a positive contribution to our community. We have launched the Milford Foundation to achieve just that.
The Milford Foundation aims to help strengthen the future of the communities within Aotearoa, New Zealand by leveraging Milford’s financial resources, investment expertise and commercial discipline.
Our mission is to strengthen New Zealand communities through the lenses of youth, education and environment. Through a combination of investment expertise, our generous donor community, a commitment to efficiency, effectiveness and transparency, and strong partnerships, we can – and will – make a meaningful impact for New Zealand’s future generations.
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