Default KiwiSaver fossil fuel ban
2nd March 2020
Barry discusses the government announcement with Hayley Holt on TVNZ Breakfast
The government has just announced that default KiwiSaver fund providers will no longer be allowed to invest in fossil fuel producing companies and illegal weapons.
Until now, default funds had no rules on ethical standards for their investments. Mindful Money used evidence and advocacy around three key points:
1. Three quarters of New Zealanders don't want fossil fuels in their funds (according to our latest survey with Colmar Brunton).
2. Investing in fossil fuel exploration and production undermines the urgent action needed to address the climate emergency
3. Getting out of fossil fuels is a sound financial decision - their share prices have been falling and there is a risk that their reserves will become worthless stranded assets.
This policy is an important building block in government support for sustainable finance. Climate action needs money to be directed away from fossil fuels towards clean energy and climate solutions. Through this policy, the New Zealand government is joining with financial institutions around the world that have divested over $12 trillion funding from fossil fuels and governments that have developed sustainable finance policies.