Invest for Climate Action
Encouraging Net Zero Pledges
Net Zero Pledges
Mindful Money has been working with the fund managers to encourage and support them to go further in their emissions reductions.
We initiated the Aotearoa New Zealand Investor Coalition for Net Zero to encourage and support fund managers to commit to drive emissions in their portfolio to zero.
The baseline survey report for the coalition, undertaken by Barry Coates from Mindful Money, was launched at a high profile event during the Climate Summit COP26, including Matt Whineray, CEO of the NZ Super Fund; Adrian Orr, Governor of the Reserve Bank; Laura Clarke, British Ambassador to New Zealand; Barry Coates, CEO of Mindful Money; and others.
Background
Net zero pledges are commitments made to reduce to zero the greenhouse gas emissions from companies and other assets in a portfolio of investments. There has been rapid growth in net zero commitments at the global level. The world’s largest global asset owners and fund managers have signed pledges to reduce their greenhouse gas emissions to zero by 2050. At the time of COP26 in November 2021, pledges amounted to over $43 trillion for fund managers and $8.5 trillion for asset owners, under UN-registered initiatives.
New Zealand funds have been slow in committing to driving emissions down in their investment portfolios. This is a crucial lever to accelerate the transition to net zero by companies, particular high greenhouse gas emitters. Until recently, only five New Zealand funds had made commitments to net zero emissions, amounting to less than $40 billion of funds under management.
Net Zero Coalition
Mindful Money has initiated a new coalition of organisations to accelerate climate action by New Zealand’s asset owners (the trusts and foundations, iwi, churches and others that own pools of funds) and fund managers (the KiwiSaver and investment providers that manage the funds). The Aotearoa New Zealand Investor Coalition for Net Zero comprises a core group of Mindful Money, Toitū Tahua: the Centre for Sustainable Finance, and the Investor Group on Climate Change (IGCC). A wider support group includes the NZ Sustainable Business Council (SBC), Sustainable Business Network (SBN), Toitū Envirocare and the Responsible Investment Association of Australasia (RIAA).
Baseline Survey
In September-October 2021, Mindful Money undertook a survey to provide a baseline analysis of the funds that have made a pledge, those working on it and those intending to do so. The results show that almost all the major funds in New Zealand are on the pathway to take deeper climate action towards making a net zero pledge.
In future, the coalition will support and encourage deeper climate action by New Zealand investors, and review progress across the investment sector.
Current Net Zero Pledges
New Zealand KiwiSaver and investment funds with a net zero pledge:
- ANZ
- BT/Westpac
- BNZ
- Kiwi Wealth
- Mercer investments
- Russell Investments
- Pathfinder Asset Management
- QBE Insurance
Other Government asset owners that have made a Net Zero pledge:
- NZ Super Fund
- Accident Compensation Commission
- Government Superannuation Authority
- National Provident Fund