Is your money a force for good?

Last updated 11 January 2024

Your money is a tool.

Using it wisely, you can make the world around you a little better.

Perhaps you’re already doing this when it comes your spending. Consciously choosing to buy some things and not others. But what about when it comes to your investing?

Your KiwiSaver account is possibly one of your biggest assets. More than likely, it’s invested in hundreds of companies you’ve never heard of, in dozens of countries you’ve never been to.

So, how can you be sure your money is invested in line with your values?

Sometimes, you have to look under the hood.

At MAS, your money is invested responsibly based on our three principles of avoiding harm, influencing positive change, and making a difference.

Avoiding harm recognises that to do ‘more good’ with your money, you also need to do ‘less bad.’ We achieve this through excluding certain companies and by considering environmental, social, and governance (ESG) risks when making investment decisions.

Exclusions tend to be based on ethics. While ethics are individual to a person, they are often shared by a society. We see this in surveys that ask hundreds of Kiwis which types of industries they do not want to invest in. The findings show that while individuals do not all agree on all issues, a clear majority do not want their savings funding companies involved in certain industries like weapons, tobacco, and fossil fuels.

This is one reason MAS will not invest in companies whose principal business activity involves fossil fuels, weapons, and tobacco. Another is because investing in these types of companies is out of step with our purpose of inspiring a healthier Aotearoa.

Influencing positive change

is about ensuring the companies that we do invest in become more sustainable, inclusive, and better managed over time. This is called ‘active ownership’ and we do this by taking part in annual general meetings of the companies we own and using our shareholder voting rights to support proposals that help create positive ESG outcomes, while voting against proposals that contradict these.

For example, in May this year we voted against management proposals at GlaxoSmithKline (a pharmaceutical company) to increase executive performance pay. We disagreed with the emphasis on short term incentives and did not like the precedent that this would set.  

Making a difference is about intentionally investing in companies that contribute to a better world. This holds much promise – both for helping you do well and do good through your KiwiSaver account. Our focus to date has been on reducing your fund’s carbon emissions and increasing investment in clean technology.   The MAS KiwiSaver Scheme now has a carbon footprint that is around 50% lower than the market index average* while investing almost 80% more into clean technology solutions.** We think we can go further and will continue to explore investments that generate a positive return for you alongside a positive impact for your community. 

As a MAS Member, you also make a real difference though the MAS Foundation, which last year distributed over $2 million to improve health and wellbeing equity throughout New Zealand. This money was used to support a range of community-led initiatives including assisting vulnerable women in unexpected or crisis pregnancies, helping people at risk of recurrent cardiac attacks to become smokefree, and funding groups addressing gang violence and drug addiction in their communities. 

Ensure your money is a force for good.

You will earn hundreds of thousands (perhaps even millions) of dollars over your lifetime. How you choose to spend and invest these dollars reflects your priorities and values in life. It has an impact. No company in history has ever been successful without customers and investors to support them. So, challenge yourself, don’t just be a conscious consumer, become a conscious investor too.

Jules Riley

Senior Growth Manager, Investments, MAS

Medical Funds Management Limited is the issuer of the MAS KiwiSaver Scheme and the MAS Retirement Savings Scheme. A PDS for each Scheme is available here:

MAS KiwiSaver Scheme

MAS Retirement Savings Scheme

*Compares the carbon footprint of equities in the MAS KiwiSaver Scheme to the MSCI All Country World Index which has a carbon footprint of 82 tonnes of CO2e/US$ million invested as at 31/03/22. A $NZ/$US exchange rate of 0.70 was used for this calculation. 

** According to MSCI, clean technology solutions are defined as companies that derive >20% of revenue from clean technology solutions including alternative energy, energy efficiency, green building, pollution prevention, or sustainable water. Equities within the MAS KiwiSaver Scheme are compared to the MSCI All Country World Index as at 31/03/22.