Street says the three financial institutions should "be governed by ethics which promote social responsibility and environmentally sustainable economic investment, they must take internationally agreed norms and conventions into account, and...they must do nothing prejudicial to New Zealand’s reputation as a responsible member of the world c community."

Only the last of those is currently a requirement of the three financial institutions.

Street’s bill has been welcomed by the New Zealand Medical Association, as well as several public health groups.

Last year the Accident Compensation Corporation decided not to invest in tobacco companies any longer.

"We can’t be promoting healthy and active lifestyles across a raft of portfolios such as heath, sport and education. And be investing funds in tobacco companies," says Street.

"Similarly, we can’t be working hard to address climate change and on the other hand be investing in companies which are key contributors to the problem, unless we are actively seeking to change their activities through engagement."

Last year the New Zealand Superannuation Fund indicated it would be looking more closely at ethical investments, with a view to engage rather than withdraw funds, and hired a specialist to champion those strategies within the organisation.