Inside CRD reports: A comparison of carbon emissions across KiwiSaver and other investments

Most Kiwis would be surprised to learn their investments contribute an average of 2.8 tonnes to their carbon footprint

New analysis from ethical investment charity Mindful Money has, for the first time, compared the carbon emissions financed by New Zealand's KiwiSaver and managed investment funds, revealing wide variation across providers and a significant addition to Kiwi’s individual carbon footprints.

The report, ‘Comparing Carbon Emissions from New Zealand Investment Funds’, examined the first full year of mandatory Climate-Related Disclosures (CRD) from 18 fund managers, covering 60 individual KiwiSaver funds and multiple managed funds. It is the first analysis to test whether this reporting actually allows comparability across funds.

Wide variation between funds

Of the 22 climate statements reviewed, only eight disclosed their financed emissions in a way that allowed meaningful comparison. The reports from seven providers used metrics that did not allow comparison with others (such as not reporting on the core asset classes). A further seven providers disclosed no financed emissions data at all in their first-year statements, utilising a CRD reporting exclusion.

Among KiwiSaver Growth funds, emissions ranged from 10.5 tonnes of CO₂-equivalent per $1 million to 43.9 tonnes, a more than four-fold difference.

Mindful Money's analysis also found that reported figures likely significantly understate the true climate impact of investments, since most funds reported only Scope 1 and 2 emissions of the companies they invest in, omitting Scope 3 value-chain emissions - which the report estimates are typically 5.5 to 7 times larger, and can account for 80–95% of a fossil fuel producer's total footprint.

A missing piece of every Kiwi's carbon footprint

Using this data, Mindful Money has calculated, for the first time, an estimate of the average “financed emissions” carried by New Zealanders through their KiwiSaver and managed fund investments: 2.8 tonnes of CO₂-equivalent per person per year.

That makes financed emissions the second-largest contributor to the average New Zealander's carbon footprint, behind transport, and larger than the emissions typically attributed to food, housing or shopping. Conventional carbon footprint tools - such as the widely used FutureFit calculator, which puts the average New Zealander's footprint at 7.7 tonnes a year - do not currently include this investment-related component at all.

Carbon footprint calculators have become a familiar tool for individuals and households internationally, from the UK's WWF footprint calculator to the US EPA's household calculator, typically covering travel, energy and consumption. Mindful Money's work extends this thinking to the investment decisions New Zealanders make every payday through KiwiSaver - decisions that, collectively, carry real climate consequences. New Zealanders can contribute to powerful international movements, such as the divestment campaigns that have convinced institutional funders managing US$40 trillion in global funds to avoid investing in fossil fuel producers.

Quote from Barry Coates, Founder and Co-CEO, Mindful Money:

“Our financial decisions have a huge impact on climate emissions and the transition to renewable energy. We can reduce our carbon footprint through our investments as well as through our shopping, transport and electricity use. How we invest our savings in KiwiSaver and other funds has real world consequences. Taking climate action can include avoiding the fossil fuel companies, joining the powerful global divestment movement, and promoting the growth of climate solutions.”

A call to maintain climate reporting

The findings land at a critical moment. In October 2025, the Government announced it would remove all managed investment schemes from mandatory climate disclosure requirements and sharply raise reporting thresholds for listed companies, reversing New Zealand's position as the first country in the world to mandate climate-related financial disclosure.

Mindful Money argues this analysis demonstrates exactly why robust, comparable reporting matters. It is important for international investors, for fund providers seeking to benchmark and improve their performance, and for the 3.4 million New Zealanders with a KiwiSaver fund who want to reduce the carbon footprint of their retirement savings. The charity is calling for the next government to reinstate a graduated, mandatory disclosure regime, with clearer methodological guidance and standard templates, rather than relying on inconsistent voluntary reporting.

Quote from Barry Coates, Founder and Co-CEO, Mindful Money:

“This research shows that comparison is possible, but clear rules are needed to ensure reporting is consistent. Some fund managers are doing the work to measure and disclose their financed emissions properly, but others are providing almost no information at all. Removing mandatory reporting for investment funds has taken the New Zealand funds management sector backwards at exactly the time when the data is starting to become useful. Kiwis who want their retirement savings aligned with a low-carbon future need clear and comparable climate reporting, and the ability to influence the climate footprint of their hard-earned savings.

“We welcome the current consultation ‘Draft climate reporting roadmap’ which provides an opportunity for a policy reset and a way forward that is built on clear rules and metrics, international comparability, mandatory reporting by managed fund providers and differentiated levels of reporting by scale of investment management.”

ENDS

Notes to editors:

The full report, Comparing Carbon Emissions from New Zealand Investment Funds: Analysis of Climate-Related Disclosures and Financed Carbon Footprint, is available on Mindful money’s website at https://mindfulmoney.nz/learn/analysis-of-climate-related-disclosures-and-financed-carbon-footprint/

Mindful Money is a New Zealand-based charity that provides research, education, free information and tools to help Kiwis align their KiwiSaver and investment choices with their values.

Media contact:
Barry Coates
Founder and Co-CEO, Mindful Money
barry@mindfulmoney.nz | 021 365 165