General Positive Outcomes summary
Positive Outcome companies are those where benefits for people and the planet make up the majority of their business, and which are held in NZ retail funds. Mindful Money has a rigorous process to select candidates and regularly reviews their ongoing eligibility.
What is the Climate Solutions theme?
Climate Solutions covers entities with activities that help to transition global economies to a low carbon future. We need to accelerate the growth of clean energy to avoid catastrophic temperature increases. To move away from dependence on fossil fuels, the world needs growth in supply of both renewable energy and technologies that use electricity. The IEA announced in 2026 that we are now in the ‘Age of Electricity’. The trend may accelerate as wars in Europe and the Middle East have exposed the risks of fossil fuel reliance and price shocks.
Sub-categories and criteria:
- Supply of Renewable Energy: companies that generate or supply renewable energy from solar, wind, hydro power, geothermal and biofuels using waste material. It also includes grid companies, investing in infrastructure, so they can deliver more renewable energy to users across a region. Renewable sources need to be at least 80% of total generation. We exclude companies generating any power from coal or with projects that cause high harm to the environment or communities.
- Energy Storage or Equipment Solutions: companies making these solutions to support the making or use of renewable energy. This includes equipment for generation (e.g. making solar panels, wind turbines), or technologies that enable use of renewable energy (e.g. EV charging, battery technologies, Fuel Cells, Smart grids).
- Innovative Products, Technologies or Solutions: companies that make products that support electrification, to either reduce reliance on fossil fuel sources, or to improve energy efficiency. These solutions can support users of energy, from large entities (e.g. property owners, manufacturers, IT processes) to households, to convert systems to the use of electricity (rather than fuels such as gas, coal or diesel).
Why is each category important?
Renewable Energy
Generation of electricity from fossil fuels accounts for about a third of carbon emissions from energy use globally. However, according to the International Energy Agency 2026 report global usage of fossil fuels has plateaued due to the huge growth in generation from renewable sources, and in particular new solar power generation. Nevertheless, demand for electricity is also rising, and the world needs to continue to rapidly increase the supply of renewable energy to keep global warming within target ranges.
Company example: Contact Energy
This leading NZ power generator has expanded renewable generation to ~98% through a merger with a hydropower operator and major investment in geothermal and solar generation. Contact has also supported NZ steel to decarbonise steel production by providing renewable energy to new electric-arc furnaces at Glenbrook.
Energy Storage/ Equipment
Technologies such as advanced turbines, smarter solar inverters, more efficient batteries, and stronger grid‑connection support renewable energy providers to make more power, more reliably, and at lower cost. Development in storage technologies are also essential to support greater supply and use of renewable energy from solar and wind, which have supply variability. Households and industrial users are also attracted by the potential for on-site wind or solar generation that provides free energy when supported by battery storage.
Company example - Enphase Energy:
This Californian company designs and manufactures balcony‑solar systems (also called ‘microinverter‑based solar’). These have become very popular in Europe. Balcony‑solar systems do not need complex installation as they plug directly into a household socket. This is especially valuable for people in apartments. Users reduce their power bills and get the satisfaction of producing their own renewable energy.
Innovative Products, Technologies or Solutions
The IEA states the world has entered the “Age of Electricity”. In 2025, one in four new cars sold globally were electric. Companies across the world have many incentives to encourage users to transition from fossil fuel energy to electricity. Users can meet regulatory requirements, reduce costs, gain sales, and attract new capital through commitments to climate transition. These trends are growing demand for innovations that support decarbonisation. Companies are creating products that provide alternatives to fossil fuel use in industry or enable reduction in fossil fuel use.
Company example: Zethos (formerly Zincovery)
This NZ innovator has developed a low‑emissions, electrochemical process that replaces the need for combustion of high amounts of coal or gas for the recovery of copper, zinc and nickel. Critical minerals are in very high demand due to the growth of data-centres, and their technology increases the amount of metal recovered from each tonne of scrap.
Investment considerations relating to Climate Solutions
For long‑term investors, Climate Solutions is an investment theme which should benefit from the energy transition reshaping economies over decades. Having more exposure to climate solutions and much less to fossil fuel companies also mitigates long-term risks.
But, performance may not be consistent year on year due to a range of complex short-term economic and geopolitical factors. There is inherent risk with new technologies and new companies. However, risks can be mitigated when climate solutions entities are part of a well diversified portfolio.