Invest based on your values: Mindful Money Badges
24th Aug. 2023
Want to ensure your investments match your values?
We have done the research so you don't have to. Twice a year we analyse all funds available in New Zealand for investments in the following areas.
Where is your money currently being invested?
Do you know where your money is currently being invested? It’s important to know which companies you are funding, and what those companies do.
It’s easy to find out, all you will need to know is:
- Which KiwiSaver fund or investment fund provider you are with
- What type of fund you are in (conservative, growth, etc).
Try it – you’ll be surprised!
We have created a simple checker that can be used to find out what you are currently investing in.
What are Mindful Money Badges, and how do they work?
There are five Mindful Money Badges available: Climate Friendly, Animal Cruelty Free, Weapons Free, Social Harm Free, Human Rights Abuses Free.
The criteria for the badges aim to ensure that badges provide a positive choice for the public, to avoid companies of concern. In order to qualify for a badge, a fund must have less than 0.01% invested in companies of concern for that issue of concern, and its investment universe must include potential investment in companies of concern. For example, no badges are issued for New Zealand or Australian investments in weapons because there are no weapons producers in the NZX50 or ASX200. Weapons badges are only available for global funds.
In order to qualify for the Climate Friendly badge, a fund must have less than 0.01% invested in any company producing coal, oil or gas, or the company must be making the transition to renewable energy on a 1.5 degree pathway. There must also be less than 0.01% invested in other aspects of Environmental Harm.
There are a series of checks to ensure that a fund’s investment orientation enables the fund to invest in companies of concern in the category for a badge. Firstly, at least 35% of the fund must be invested in equities. Secondly, investment orientation may be defined by geography, NZ/AUS exchange or sector. For example:
- A NZ fund is not eligible for any of the Animal Cruelty Free, Weapons Free, or Human Rights badges, because there are no NZ companies of concern within those areas.
- An Australian fund is not eligible for a Weapons Free badge because there are no Weapons companies in the ASX200.
- Funds which are solely invested in infrastructure, financials, carbon trading or property are not eligible for any badges as there are likely to be no companies of concern within those sectors, and similarly funds solely invested in resources/mining are not eligible for Animal Cruelty Free, Weapons Free or Social Harm Free badges. Badges are not available to funds that invest primarily in unlisted securities because of insufficient data to verify whether or not they are classified as companies of concern.
Thirdly, if we have been unable to source at least 95% of the portfolio holdings for a fund, due to investments in third party funds not being available, it will not be eligible for any badges.
Fund providers choose whether they will take a badge that is offered. Mindful Money is a charity and those taking badges make a contribution towards Mindful Money’s marketing, research and website costs.