The Aotearoa New Zealand Stewardship Code is designed to help financial market participants deliver effective stewardship of investments in a responsible manner. The code is voluntary and reports are based on a ‘comply or explain’ basis. The document features nine principles of responsible investment stewardship in New Zealand. The principles cover topics including Governance, Fiduciary Duty, and Ethical Standards.

The plan recognises the importance of incorporating material environmental, social, and governance (ESG) matters and Te Ao Māori worldview in assessing the long-term health of the capital markets and achieving sustainable outcomes for our environment, society, and economy. The third principle addresses material ESG issues and urges signatories to include such factors when making investment decisions and prioritising them based on their significance. The fourth principle highlights the importance of engaging with underlying asset managers, issuers, and other key stakeholders and encourages regular and effective engagement with them. The fifth and seventh principles address the importance of voting responsibly and collaborating and advocating for change to promote ongoing stewardship and achievement of sustainable goals.

Overall, the Guiding Principles can provide investors with a framework for delivering effective stewardship as well as encourage corporate governance through business practices that lead to tangible outcomes for our environment, society, and economy. Going forward, financial market participants in New Zealand may benefit from voluntarily adopting and reporting on the principles outlined in the Aotearoa New Zealand Stewardship Code.