The managers of the New Zealand’s $86 billion Super Fund failed to properly address human rights issues when considering whether to exclude companies from its investments, the High Court has found

Justice Simon Mount granted an application by the Palestine Solidarity Network Aotearoa (PSNA) for judicial review of Guardians of New Zealand Superannuation’s policies relating to ethical investment.

In a decision released today, Justice Mount declared parts of the fund’s policy documents, standards and procedures, and its sustainable investment framework were “unreasonable and unlawful”.

The court also ordered the crown entity to pay PSNA’s legal costs.

PSNA co-chair John Minto said the decision was a victory for Palestinian rights, while Guardians of New Zealand Superannuation said it was considering its next move.

The sovereign wealth fund was created in 2001 to help provide for New Zealander’s superannuation costs.

By law, Guardians are required to invest the funds on a prudent commercial basis, manage and administer the fund with best-practice portfolio management, and avoid prejudice to New Zealand’s reputation as “a responsible member of the world community”.

Backbone of case
That last duty formed the backbone of the case taken by PSNA, who have long lobbied the Guardians to divest from companies it claims to be complicit in human rights abuses in the occupied Palestinian territories.

The Guardians excluded development, construction and technology companies involved in settlements in the Occupied Palestinian Territories in 2012.

In 2021, following years of lobbying by PSNA, the Guardians also excluded five Israeli banks from its portfolio on the grounds there was an unacceptable risk the banks were materially contributing to breaches of human rights standards and that engaging with the banks themselves was unlikely to be effective.

PSNA continued to request the exclusion of other investments due to alleged human rights breaches and focused on four companies that featured on a United Nations Human Rights Council database of companies trading with illegal Israeli settlements — Airbnb, Booking.com, Expedia, and Motorola.

Justice Mount said the chief executive of the Guardians replied to the group in mid-2024 noting none of the companies “currently meets the exclusion threshold under our Sustainable Investment Framework”.

In later correspondence, the Guardians’ head of sustainable investment reiterated that stance, which led PSNA to indicate it would seek the judicial review.

In his findings, Justice Mount noted the Guardian’s 2020 policy documents identified several standards and benchmarks that were later removed — including the Principles for Responsible Investment, principles of the UN Global Compact, and a broad reference to “other good practice standards”.

Earlier policy removed
The earlier policy referred to several sets of standards described as “universally recognised by the world community — with signatories including investment managers, investee companies and the peers of Guardians — and unlikely to be superseded”.

The 2020 policy stated its applicable principles were based on the UN Global Compact, in particular the requirements to support and respect human rights and “no complicity in abuses”.

It also set a threshold for excluding government bonds where there was “widespread condemnation or sanctions by the international community and New Zealand has imposed meaningful diplomatic, economic or military sanctions”.

Justice Mount noted the almost 3000 pages of evidence filed for the judicial review allowed him to gain a picture of how the Guardians had used their policy documents in practice.

The judge noted the Guardians’ approach to excluding investments was not entirely coherent and the policies failed to meet the basic requirements of the law when alleged breaches of human rights standards were concerned.

The Guardians had a duty to reformulate its policy documents to be consistent with the Act, he said.

Minto celebrated the court’s ruling.

Fund raking in money
The group was confident the Super Fund would divest from Airbnb, Booking.com, Expedia and Motorola once it had rewritten its policies to comply with the law, he said.

The High Court judgment showed the Super Fund had invested $67 million in the four companies.

Minto said the fund was raking in money from appalling breaches of international law by Israel in the Occupied Palestinian Territories of Gaza, the West Bank and East Jerusalem.

The country’s leading sovereign wealth fund should be setting the benchmark for all New Zealand investment funds, not deriving money from war crimes and massive human rights abuses, he said.

The lack of a clear grounds to exclude companies from investment because of human rights abuses were particularly problematic, Minto said.

“This is beyond outrageous. Our largest sovereign wealth fund, owned by the government on behalf of the people of New Zealand, has no specific references to human rights standards in its investment exclusions policy.”

The case had revealed the exclusions policy was weakened and direct references to human rights standards were removed the year after the fund divested from five Israeli banks, Minto said.

Replaced with vague policy
“The Super Fund replaced a principled policy with an entirely vague and subjective assessment of companies which meant they could resist pressure from human rights groups such as PSNA.

“The fund was entirely making up legal sounding excuses as it went. It meant they could now keep on their books other companies which abuse the human rights of Palestinians,” he said.

“The Super Fund owes us all an apology and in particular an apology to Palestinians here and in Palestine, whose suffering is helping pay the price of the fund’s increasing wealth.”

Guardians of New Zealand Superannuation chief executive Jo Townsend said the crown entity was still considering its response to the decision.

“We recognise that we are investing on behalf of all New Zealanders, and that gives people a legitimate interest in how we manage the fund,” she said.

“We will thoroughly evaluate today’s decision and determine how best to respond to it,” she said.

The UN Human Rights Council database featuring the four companies is from a list of 97 companies involved with illegal Israeli settlements.

The database came about following a 2016 UN Security Council resolution, co-sponsored by New Zealand, that led to diplomatic rupture between the two countries and Israel recalling its ambassador.

Israeli media reported at the time that Prime Minister Benjamin Netanyahu warned Foreign Affairs Minister Murray McCully proceeding with the resolution wold be considered a “declaration of war”.

This article is republished under a community partnership agreement with RNZ.

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Palestine Solidarity Network Aotearoa has appealed to Foreign Minister Winston Peters to stress to the Palestine genocide “open wound” in his meeting with US Secretary of State Marco Rubio in Washington this week.

Co-chair Maher Nazzal of PSNA said in a statement the international crisis in West Asia “must be reined in” and New Zealand pressure should be part of this.

He blamed the US-Israel war on Iran on resistance to the genocide in Gaza in which almost 73,000 Palestinians, mostly women and children, have been killed.

Nazzal also warned in the letter to Peters against New Zealand being “recruited” for the US war effort.

“The US will want to recruit New Zealand into the US and Israel war on Iran, and try to get Peters to offer something crazy, like dispatching the New Zealand frigates Te Kaha and Te Mana to help force the Straits of Hormuz,” he said.

‘But the open wound of Palestine remains the single greatest threat to peace and stability across the entire world.”

Nazzal said PSNA was urging Peters to press the US to demand equal rights for everyone living “between the river and the sea”.

“This means confronting the apartheid state of Israel head-on. The world can no longer tolerate a genocidal and racist state in West Asia, which is armed to the teeth by the US and hell-bent on attacking its neighbours to capture territory.

Stoking ‘the flames of hatred’
“Israel continues to stoke the flames of hatred and eternal war by last week passing legislation to execute Palestinians convicted of what Israel calls ‘terrorism’.”

Nazzal said the racist apartheid law did not apply to Jewish Israeli settlers who were killing Palestinians daily.

It exclusively applied in the military courts, which were only used to try Palestinians.

“They have a conviction rate of over 96 percent,” Nazzal said.

“Racist Israeli ministers and Knesset members celebrated the inflammatory racist law with champagne. There was barely a peep from Peters.

“New Zealand has played an important role in helping resolve international conflicts in the past — we can be part of the solution now,” Nazzal added.

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A peace advocate urged people in New Zealand today to get behind a “Stop Wars Aotearoa” campaign to oppose the illegal and unprovoked US-Israeli war on Iran and expand beyond solidarity with Palestine.

In the 127th week of protest against Israel’s genocidal war on Gaza and occupied West Bank, socialist trade union organiser Joe Carolan called on protesters to redouble their efforts.

Speaking in Auckland’s Te Komititanga Square, he praised a public meeting in Mt Eden this week that heralded the start of a rolling peace movement that echoed the efforts in a bid to halt the 2003 US-led invasion of Iraq — “a war based on a lie” about non-existent weapons of mass destruction.

Carolan drew comparisons between his native Ireland and the colonisation of New Zealand.

Apart from Christianity, the colonisers “needed another pretext to civilise great unwashed”. Militarism.

He paid tribute to “anyone who ran the gauntlet outside the public meeting on Wednesday that we held at the Mt Eden War Memorial Hall where we remember the price of wars — in fact working class lives — both here and abroad”.

“And we should remember the dead and not go to war again — that’s the whole point of a war memorial hall.

‘Ran the gauntlet’
“But those of us who ran the gauntlet of the people waving Israeli flags and lecturing us about human rights, waving the American flags and lecturing us about women’s rights when the place is run by rapists and pedophiles obviously – know it’s Operation Epstein Fury now.

“An operation so [US President Donald] Trump and [Israeli Prime Minister Benjamin] Netanyahu can both avoid what is coming to them which is a long time in prison until they die.”

Netanyahu is wanted on an International Criminal Court (ICC) arrest warrant on charges of war crimes and crimes against humanity, and Israel is on trial for genocide with the International Court of Justice (ICJ) in a case brought by South Africa and 14 other countries.

“Many people didn’t show shock at all in the West, and condemn the murder of 170 school students — young women — that you guys purport that you want to liberate.

“You killed them. You liberated them from their lives and their blood is on the hands of those [US and Israeli] forces.

“And also Iran is a gigantic country of 90 to 100 million people. Of course, it’s not a monolithic country, there are people with many different views.

“I’ll give you two words in Irish, you might have heard them before, about who should determine Iran’s future, and that’s Sinn Féin — ‘Ourselves Alone’.

‘Run own revolution’
“Nobody has the right to determine the future of any nation, except the people who live in that nation themselves, including whether how they run their own revolution or how they run their own democracy.”

Sinn Féin is also an Irish republican political party, founded in 1905, striving for self-determination and ending British rule in Northern Ireland.

Tomorrow Te Komititanga Square is hosting an Irish cultural festival to mark the lead up to St Patrick’s Day on March 17.

Tayyaba Khan of Palestine Solidarity Network (PSNA) spoke about the mosque massacre in Christchurch on 15 March 2019 when a lone Australian gunman murdered 51 Muslims at Friday prayers in New Zealand’s worst case of terrorism. The gunman is serving a life sentence for his crimes.

Khan also remembered the survivors and their struggle to rebuild their lives.

Other speakers today highlighted how the rally was reminding the New Zealand government and the public that many in the country were totally opposed to the continuing genocide in Palestine.

“There is no ceasefire in Gaza and the US and Israeli Zionists continue to drive the Palestinian people out of their ancestral homes and land to colonise the region,” said a protest flyer.

“To everyone in the square today we invite you to join with us and the many peoples around the world in condemning the unlawful US and Israeli military assault on Iran.”

According to the Al Jazeera death toll live tracker, 1444 people have been killed in Iran, at least 15 in Israel, 11 US soldiers and 19 dead in Gulf states.

“We stand in solidarity with all the people of Iran and across the Middle East, particularly Palestine, including Gaza and Lebanon,” said rally MC Leeann Wahanui-Peters.

Al-Quds Day marked
Meanwhile, tens of thousands of people around the world marked Al-Quds Day yesterday. This is marked annually to show support for Palestine and oppose the Israeli occupation of Palestinian territories.

Al-Quds is the Arabic name for Jerusalem.

Reporting from the huge Tehran rally, Al Jazeera’s Tohid Asadi said Iranians hoped to both show their support for Palestinians and express “defiance and resilience” amid the US-Israeli attacks.

“They think that by killing us, we will be afraid, that by dropping bombs on our heads, we will be afraid. No, we stand by our country,” a woman demonstrator told Al Jazeera.

Another protester said Iranians had shown in their confrontation with the US and Israel that “the wall of oppression can be broken”.

“Today, with their presence in different squares, the people showed that it is possible to overcome injustice and break the wall of oppression,” he told Al Jazeera.

Iran’s President Masoud Pezeshkian was also seen at the rally in the Iranian capital — shaking hands with people and posing for selfies — along with other Iranian officials, including Ali Larijani, secretary of the Supreme National Security Council, and Foreign Minister Abbas Araghchi.

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