Responsible investment, including environmental, social and governance considerations, is taken into account in the investment policies and procedures of the scheme. Set out below is an explanation of the extent to which responsible investment is taken into account in those policies and procedures. This explanation is also available from the Secretary to the Trustees, whose addresses are available at the 'Contacts' page.

The Trustees adopted the Principles for Responsible Investment (PRI) on 08 June 2007 and as such are committed to the six Principles of PRI.
 
An integral part of adopting PRI is the implementation of action to satisfy the six Principles where they are consistent with the fiduciary responsibilities of the Trustees to deliver the best possible risk-adjusted returns to members over the long-term.
 
The Trustees recognise that the scheme will mostly be invested in pooled funds with them rarely holding investments directly. The Trustees, therefore, will primarily encourage and engage with its Investment Managers on the application and adoption of environmental, social and corporate governance (ESG) and the Socially Responsible Investing (SRI) principles embodied in the PRI – Trustees recognising this as a component of emerging best practice in responsible investing. In addition, the Trustees believe that, in most instances engagement and dialogue in conjunction with others will have a greater impact on ESG and SRI practices than through divestment.
 
Principle 1 – ‘We will incorporate ESG issues into investment analysis and decision-making processes’ by:

• Incorporating and addressing ESG issues in the scheme SIPO
  
• Engaging with and evaluating the competency of our Investment Adviser and Investment Managers to ensure ESG issues are addressed and incorporated in future decision making. 
  

Principle 2 -  ‘We will be active owners and incorporate ESG issues into our ownership policies and practices’ by:

• Noting the Trustees outsource the ownership of all securities to Investment Managers in accordance with agreed mandates approved by Trustees.
  
• Requesting our Investment Managers to undertake and report to Trustees on an annual basis outlining their activity with regard to ownership policies, company dialogue and the exercising of voting rights, and engagement in accordance with best international ESG practice. 
  

Principle 3 – ‘We will seek appropriate disclosure on ESG issues by the entities in which we invest’ by:      

• Requesting our Investment Managers to undertake and report to Trustees on an annual basis outlining their activity with regard to:
  
  • standardised reporting on ESG issues     
• integration of ESG issues within annual financial reporting
  
• requesting information from companies related to the adoption of or adherence to relevant norms, standards, codes of conduct or international initiatives
  
• shareholder initiatives and resolutions promoting the disclosure of ESG issues, and
• any other significant ESG issues. 
  

Principle 4 – ‘We will promote acceptance and implementation of the principles within the investment industry’ by:

• Including PRI related requirements in all future ‘Requests for Proposals’(RFPs)
  
• Communicating our ESG expectations to our Investment Adviser and Investment Managers
  
• Encouraging our Investment Managers to sign and comply with the PRI.
  

Principle 5 – ‘We will work together to enhance our effectiveness in implementing the principles.’ by:

• Supporting and participating in relevant networks such as the PRI Engagement Clearinghouse, the PRI Asia-Pacific Working Group, the Investor Group on Climate    Change (IGCC), the Carbon Disclosure Project (CDP) and the International Corporate Governance Network (IGCN) and other similar networks to share tools and pool resources in accordance with the resources available within the scheme.
  

Principle 6 – ‘We will each report on our activities and progress towards implementing the principles’ by:

• Disclosing in the Trustee Annual report how ESG issues have been integrated in the Trustee’s investment practices over the previous year
  
• Communicating to Members, the public and Regulators about PRI and ESG issues by the publication of this policy in the Trustee Annual Report and at the scheme’s web site – www.firesuper.co.nz   
• Reporting to Members, the public and Regulators on progress related to implementation or non compliance with PRI in accordance with the ‘Comply or Explain’ approach on an annual basis.
  

The Trustees realise the implementation of PRI is an activity which is ongoing, complex and constantly evolving and as such Trustee policy related to PRI and associated ESG issues needs to be dynamic and regularly reviewed.
 
This implementation process is to be further reviewed in 2009 to take account of evolving international best practice.