OUR GOVERNANCE:
AN ETHICAL CULTURE, RESPONSIBLE INVESTING AND CORPORATE CITIZENSHIP
Leadership, ethics and corporate citizenship
Effective and ethical leadership
The Board of the Fund embodies the principles of accountability, ethics, and integrity, ensuring all actions are in the best interests of stakeholders. Upholding the Fund's values, we have committed to ethical and honest practices, which are crucial in fostering trust in our business dealings. A formal ethics policy and code of conduct are in place, alongside resources to reinforce our ethical standards and investigate any reported concerns, supported by a robust Whistleblowing Policy.
To pre-empt conflicts of interest, Directors are provided the opportunity to declare any potential conflicts at the start of each Board meeting. Our governance framework mandates clear disclosures and regular Board evaluations to maintain ethical decision-making. An external law firm, SIGNUM Advocates, manages the whistleblowing process, allowing for independent review.
Sustainability is a strategic priority, with initiatives reflective of selected UN SDGs and informed by our environmental management policies.
We regularly review Committee terms of reference and formalise plans for improvement based on audit findings. Internal Audit plays a key role in the enforcement of our ethical culture, monitoring, and investigating reports of unethical behaviour.
Annually, we undertake environmental risk assessments and are dedicated to reducing the consumption of energy, paper, and water and adhering to local waste management regulations. Our Audit and Risk Committee oversees policy and code compliance, and our HR manual embodies our ethics to inform and guide staff behaviour, all part of our commitment to governance that is both responsible and sustainable.
Corporate citizenship
Sustainability is an integral part of our DNA, reflected in our leadership approach that emphasises creating value for stakeholders and society at large.
We are intent on enriching our communities and advancing education, health, financial literacy, and environmental wellbeing through our Corporate Social Investment (CSI) initiatives. These efforts align with our commitment to the Sustainable Development Goals (SDGs), particularly those focusing on ending poverty, achieving gender equality, promoting decent work and economic growth, reducing inequalities, supporting sustainable cities, promoting peace justice and strong institutions and partnerships for the goals. They are as follows:
The Fund operates with accountability and integrity, upholding sustainable business practices and fostering development that benefits the environment, our employees, and the community. At the NSSF, we apply our expertise in business, policy, and data, as well as our financial resources, to foster an inclusive recovery from economic setbacks, enhance access to opportunities for economic advancement, and spearhead solutions for sustainability and climate action.
Sustainability governance is embedded in our organisational structure, managed by the Board Staff Administration and Corporate Affairs Committee to ensure rigorous oversight and strategic direction of our sustainability endeavours. In addition, the Investments and Project Monitoring Committee (IPMC) takes the lead in the Fund’s responsible investing approach, ensuring our investment policy and strategy requirements are executed and that we continually support ESG-compliant companies.
Responsible investments
As a prudent institutional investor, we are committed to ensuring that responsible investment standards guide our decision-making, thereby promoting sound governance and fostering value creation by the companies in which we invest.
Investment Approval Process
The investment of member funds is authoritative and deliberate, requiring Board approval in alignment with the Minister of Finance, Planning and Economic Development, as stipulated by Section 30 of the NSSF Act. Our focus is on mature markets known for their predictable returns, aligning with prudent investment philosophies.
Growth and Asset Allocation
The pursuit of growth is managed through a strategic Allocation of Assets policy, formulated under our comprehensive investment policy to balance prudent decision-making with the desire for consistent member returns.
Investment Oversight
The Investments and Project Monitoring Committee (IPM) takes the lead in the Fund’s responsible investing approach, ensuring our investment policy and strategy are executed as intended and that we continually support ESG-compliant companies.
Responsible Investment Policy
Our responsible investing philosophy is encapsulated in a Board-approved investment policy, which institutionalises a formalised investment strategy and underscores our commitment to responsible investment practices.
Monitoring and Review
The Board actively monitors responsible investments through:
In-depth consideration of investment proposals in consultation with the relevant Minister.
A quarterly review of real estate, equities, and fixed income performance against established targets.
Biannual performance evaluations of Fund Managers, focusing on their adherence to our investment standards and targets.
Incorporating ESG considerations in investment decision-making, reflecting our commitment to responsible and sustainable investment practices.
Regularly updating the Fund’s strategic asset allocation, ensuring it remains responsive to market dynamics and aligns with our long-term investment horizon.
By implementing these measures, we ensure our investments not only contribute to the financial growth of the Fund but are also aligned with the broader principles of sustainability and corporate responsibility. See our Chief Investment Officer and our IPMC reports.
A NEW DAY - CREATING SHARED VALUE FOR SUSTAINABLE GROWTH