Every investor has the power to reduce their climate impacts through their investments
Mindful Money's calculations show that $3.19 billion of KiwiSaver money and $3.73 billion of other NZ retail investment funds is invested in companies that are involved in fossil fuel extraction and production (analysis of March 2023 data). If you don’t want your money to be part of it, switch to one of the funds listed below and join the global divestment movement.
Climate change stems from a serious economic failure to live within our ecological boundaries, and economic solutions are needed to regain a stable climate. Finance is central to those changes. Money fuels the economy, so the challenge is to direct the flows of funds to businesses that will reduce emissions and invest in adapting to a far more volatile climate.
It’s not only a sound moral decision to help stop greenhouse gas emissions to avoid climate catastrophe, but a sound financial decision – up to 80% of fossil fuel reserves are at risk from becoming stranded assets, with little value as fossil fuels are phased out. Authoritative research shows that divestment from fossil fuels in recent decades has not resulted in lower returns for investors and we have recently shown the evidence of a huge financial loss experienced by investors in the coal, oil and gas sectors.
What does Climate Friendly mean?
Our climate friendly badge means that the investments are free from any of the following:
Fossil Fuel Production – Where companies are involved in the production of fossil fuels (oil, natural gas, coal, shale oil) including exploration, production (including core services), storage, transport (except by rail) and refining.
Fossil Fuel Power Generation – Where companies source their power generation from fossil fuels (oil, natural gas, coal) to generate electricity.
Deforestation – Where companies are involved in, or directly linked to through their supply chain, the act of deforestation or clearance of forest that is then converted to a non-forest use.
Environmental Damage – Where companies, through their products or operations, are involved in environmental degradation e.g., pollution, chemical spills.
Palm Oil – Where companies are involved in the production or distribution of palm oil.
GMOs – Where companies are involved in the development or release of GMO plants and seeds.
Highly Hazardous Pesticides – Where companies are involved in the production or distribution of highly hazardous pesticides, according to the PAN International List of Highly Hazardous Pesticides.
Climate Friendly KiwiSaver and Investment Funds
The following is a list of those funds that have excluded fossil fuel producers, companies that deforest or cause environmental damage, palm oil producers, GMO companies and those who make highly hazardous pesticides from their portfolio (Mindful Money measures the level of investment down to 0.01% of the portfolio).
Funds that have no investment in the above categories can now use our new climate friendly badge. Look for the badge above to be certain of who is putting their money where their mouth is.
KiwiSaver Funds that are Climate Friendly
- Kernel KiwiSaver NZ 20 Fund
- Kernel KiwiSaver NZ Small & Mid Cap Opportunities Fund
- Kernel KiwiSaver S&P Kensho Moonshots Innovation Fund
- Koura KiwiSaver New Zealand Equities Fund
- Koura KiwiSaver US Equities Fund
- Nikko AM Ark Disruptive Innovation Fund
- Nikko AM Global Shares Fund
- Nikko AM SRI Equity Fund
- NZ Funds Balanced Fund
- NZ Funds Growth Strategy
- Pathfinder KiwiSaver Balanced Fund
- Pathfinder KiwiSaver Growth Fund
- InvestNow Pathfinder Ethical Growth Fund
- Sharesies Pathfinder Ethical Growth Fund
- QuayStreet New Zealand Equity Fund
- QuayStreet Socially Responsible Investment Fund
Investment Funds that are Climate Friendly
- Castle Point Ranger Fund
- Elevation Capital Global Shares Fund
- Fisher Funds Australian Growth Fund
- Fisher Funds International Growth Fund
- Fisher Funds New Zealand Growth Fund
- Fisher Funds Premium Australian Fund
- Fisher Funds Premium International Fund
- Fisher Funds Premium New Zealand Fund
- Fisher Funds Trans Tasman Equity Trust
- Harbour Sustainable NZ Shares Fund
- Hobson Wealth NZ Equity Fund
- Hyperion Global Growth Companies Pie Fund
- Kernel NZ 20 Fund
- Kernel NZ Small & Mid Cap Opportunities Fund
- Kernel S&P Kensho Moonshots Innovation Fund
- Lifesaver Trans Tasman Equity Fund
- Mercer Emerging Markets Shares Fund
- Mercer Ethical Leaders NZ Shares Fund
- Mercer NZ Shares Fund
- Mint New Zealand SRI Equity Fund
- Nikko AM Ark Disruptive Innovation Fund
- Nikko AM Concentrated Equity Fund
- Nikko AM Core Equity Fund
- Nikko AM Global Shares Fund
- Nikko AM Global Shares Hedged Fund
- Nikko AM SRI Equity Fund
- NZ Funds Global Macro
- NZ Funds Global Shares
- NZ Funds Income Generator
- NZ Funds New Zealand and Australian Shares
- NZ Funds Wealth Builder - Growth Strategy
- Pathfinder Ethical Growth Fund
- Pathfinder Ethical Trans-Tasman Fund
- Pathfinder Global Responsibility Fund
- Pathfinder Global Water Fund
- Pie Growth UK & Europe Fund
- QuayStreet New Zealand Equity Fund
- QuayStreet Socially Responsible Investment Fund
- Salt Core NZ Shares Fund
- Salt Sustainable Global Shares Fund
- Simplicity NZ Share Fund
- Smartshares Automation and Robotics ETF
- Smartshares Healthcare Innovation ETF
- Tahito Te Tai O Rehua Fund