Investors urged to back ethical companies

Dr Robert Howell. Photo / File

Dr Robert Howell's presentation in Kaitaia on responsible investing drew a small audience but delivered a powerful message.

Those who cared about future generations had to take more responsibility for who used their money, and the effect investments had on the planet, he told the audience at a Far North REAP (Rural Education Activities Programme) gathering recently.

The international expert on responsible investment, and author of the recent-released book Investing in People and the Planet, invited the audience to think about who invested their money on their behalf.

Global data showed that more than 90 per cent of all investments did not meet ethical investment criteria."

Dr Robert Howell

Banks invested deposits, KiwiSaver invested contributions, councils invested rates, the government invested taxes, while finance and insurance companies were also major players.

Global data showed that more than 90 per cent of all investments did not meet ethical investment criteria, so it was "almost a given" that money was invested in projects that either directly or indirectly help to kill off small businesses, damaged the environment or fuelled warfare and human rights abuses somewhere in the world.

The New Zealand Government still invested taxes in Rio Tinto and Exxon Mobil, both notorious for environmental and human rights abuse, while many KiwiSaver providers invested in corporations that demonstrated unethical behaviour, for example Apple, which pays no tax in New Zealand, Shell, associated with massive oil spills and assassinations in Nigeria, and Veolia, the largest owner of privatised water in the world.

Dr Howell said the Government could adopt the Norwegian Government's ethical investment model, and add specific standards and exclusions to reflect its particular aspirations.

The Norwegian model was based on three general principles: to act in a socially just and fair way, to respect the Earth, and to live within the capacity of the Earth to support human life.

An Ethical Council monitored the application of those principles across all government investments, as well as those of institutions such as insurance companies, banks, local government and universities.

Dr Howell outlined how people could apply that model regarding how their money was invested by first selecting the bank, investment agency or political party that was most closely aligned with those principles, then stipulating that their money could only be invested in support of the principles.

Examples of such investments were in areas such as local businesses or renewable energy, and not in companies that manufactured weapons, destroyed rainforests or used slave labour.