Animal cruelty worse than bombs and tobacco to KiwiSaver investors

Monday, 17 September 2018

New Zealanders have a deep-seated hatred for animal cruelty.

Animal cruelty tops the list of things KiwiSaver investors don't want their money invested in, research to be unveiled by former Green MP Barry Coates shows.

It ranks even more highly in savers' hate list than military weapons and tobacco, both of which KiwiSaver providers have moved to exclude, following a public outcry after media reports.

And yet, Coates said, there had been no discussion of KiwiSaver's animal cruelty record.

'Isn't that amazing? It's such a touchstone to many New Zealanders, and I just don't think it has had enough attention paid to it.'

**READ MORE:

Barry Coates, former Green MP and founder of Mindful Money.

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In all, 93 per cent of people rated it as somewhat important, important or very important for them to know their KiwiSaver money was not invested with companies involved in cruelty to animals.

Only human rights abuses were ranked as highly for importance to KiwiSavers, but more Kiwis felt animal cruelty was very important to them not to invest in.

That compared to 83 per cent who wanted KiwiSaver to avoid tobacco makers, 82 per cent who were anti-gambling, and 78 per cent who did not want money invested in companies involved with military weaponry.

'This is very positive news from our perspective,' said Hans Kriek from SAFE, which campaigns against animal cruelty. 'But I am not surprised.'

'I have been doing this work in New Zealand for over 30 years, and I have seen how people react to animal cruelty in this country.'

People did not wish to support businesses that are cruel to animals, he said.

'If KiwiSaver is there to reflect the wishes of New Zealanders… it's important to try to respect those wishes and avoid companies that have a bad record on animal welfare,' Kriek said.

Hans Kriek, SAFE's ambassador, says KiwiSaver providers should respect people's wishes to avoid companies that are cruel to animals.

International not-for-profit PETA (People for the Ethical Treatment of Animals) publishes a list of big international companies that still do product testing on animals.

It includes some US and UK stockmarket listed companies common to many large KiwiSaver funds, including Johnson & Johnson, Estee Lauder, Proctor & Gamble, Unilever, GlaxoSmithKline, Reckitt Benckiser, and 3M, all of which, for example, are in ASB's KiwiSaver growth fund.

It was pharmaceuticals and cosmetics companies that were of most concern, according to Coates.

SPCA Auckland chief executive Andrea Midgen did not want a single dollar of her money invested in companies that test cosmetics on animals.

Overseas, there were animal cruelty-free funds, but KiwiSaver didn't offer any, as far as he knew.

He expected his research to kick off discussion that would eventually lead KiwiSaver scheme providers to respond to savers' desires, just as they had to the outcry over cluster munitions, landmines, nuclear weapons and tobacco.

But some companies feel obliged to continue testing, as there are countries, like China, which require animal testing on cosmetics.

For example, Johnson & Johnson, which is one of the giant international companies KiwiSaver funds often invest in, says: 'The Johnson & Johnson Family of Consumer Companies does not test cosmetic or personal care products on animals anywhere in the world except in the rare situation where it is required by law or governments.'

Estee Lauder said: 'The Estée Lauder Companies does not test on animals and we never ask others to do so on our behalf. If a regulatory body demands it for its safety or regulatory assessment, an exception can be made.'

Andrea Midgen, SPCA chief executive, said she would not want a single dollar of her money invested in a company that tested cosmetics on animals.

There was a growing awareness that investing was not 'just all about the dollars', but said KiwiSaver providers needed to join the wave of 'impact reporting', where they tell their stakeholders how they are conducting their operations in a socially responsible way.

'Transparency of impact reporting is starting to come in the not-for-profit sector, but it has to come in the commercial sector.'

The research, prepared for Tuesday's Responsible Investment Association of Australia conference in Auckland, showed not everyone who felt strongly needs their KiwiSaver to be completely clear of troubling behaviour.

Many people wanted KiwiSaver providers to avoid the worst companies, or to invest in those companies, but 'engage' with them in a bid to influence them into doing better.

The barriers to responsible investment are many, but being time poor, and a lack of trust in KiwiSaver providers to tell them the truth.

Coates is in the process of building an online KiwiSaver tool which the public will be able to use to plug in their ethical preferences, and be matched with the fund that best suits their preferences.

He set up the Mindful Money charity established to develop it, and to increase the adoption of responsible Investment.

More than 750 New Zealanders responded to the survey.