New Zealand Investors Keep Climate at the Heart of Decision-Making

Aotearoa New Zealand's institutional investors overwhelmingly recognise climate risk as a material factor for their decisions, according to the 2026 Survey of Investor Climate Policies and Actions released today.

Every respondent reported having a climate strategy in 2026, with 93% noting that they had discussed climate strategy and portfolio risks at a board level.

The survey was conducted by the Investor Group on Climate Change (IGCC), the Centre for Sustainable Finance. and Mindful Money. It studies 14 investors managing just over NZ$200 billion in assets, roughly 30% of total New Zealand assets under management.

The top drivers for investors’ actions on climate were:

• Inclusion of climate risks in financial decision-making (79%);
• meeting regulatory requirements (71%); and
• meeting their fiduciary duty to members and clients (64%).

More than half have set a public net zero target for all or part of their portfolio.

Disclosure is a business tool

Investors are going beyond compliance in their use of climate analysis, building it into the way their organisations operate.

· 85% have run scenario analysis across all or part of their portfolio.

· 57% publish climate statements aligned with global or local standards.

· Half now assess physical climate risk across their whole portfolio.

Investors also depend on consistent and decision-useful analysis on financially-material climate risks from the companies they own.

Data availability is improving: the share of respondents citing a lack of tools or data as a barrier fell from 39% to 21%. Gaps remain, however. More than four in ten respondents point to a lack of clear definitions and frameworks, and more than half say portfolio companies lack well-defined net zero pathways. Comparable and high-quality reporting across companies would help investors price climate risk, compare opportunities and engage with confidence.

"Investors value climate reporting because it helps them manage risk and allocate capital. Consistent, comparable disclosure also matters to international investors and trading partners. Policymakers may wish to weigh these benefits as the reporting regime evolves." — Duncan Paterson, Director of Investor Practice, IGCC

Some Barriers to investment are growing

The share of investors who said barriers to climate investment had worsened over the past 12 months rose to 43% - this is a significant increase on the 4% result from last year.

Only 21% said barriers had eased. The most common barriers cited were a lack of opportunities with suitable risk and return profiles (71%) and policy or regulatory uncertainty (57%).

Investors recognise the role that policymakers play in this process. 71% of respondents engaged in climate policy advocacy over the past year.

“New Zealand investors are measuring, pricing and reallocating climate risk within their portfolios, but they cannot stock pick their way around the underlying physical risks or their wider economic and fiscal consequences. Addressing those risks requires durable policy settings, credible sector-level pathways to decarbonisation and well-designed incentives that unlock private capital for productive, resilient growth.” — Joanna Kelly, CEO, Centre for Sustainable Finance

The most popular policy priority was a science-based 1.5°C-aligned national emissions targets (43%). A little over a third of respondents cited work on sector pathways, whole-of-economy carbon pricing, phasing out fossil fuel subsidies and stronger greenwashing legislation as worthy of government attention.

"Investors are telling us they need policy certainty, quality data and viable opportunities to put capital to work. Stable, long-term settings help them to manage risk and invest in climate opportunities. The framework for a cross-party approach to climate policy should be restored and respected." — Barry Coates, CEO, Mindful Money

The survey also points to areas for progress. While 79% measure Scope 1 and 2 financed emissions across their whole portfolio, only 36% measure Scope 3. More than half (57%) do not have a transition plan.

ENDS

Download the full report here

Notes to editors

About IGCC: The Investor Group on Climate Change (IGCC) is a collaboration of Australian and New Zealand institutional investors focused on the impact of climate change on investments. Its members manage over $5 trillion in Australia and New Zealand.

About CSF: The Centre for Sustainable Finance (CSF) is an independently governed charitable trust founded in 2021. It partners with the New Zealand government, philanthropies and financial institutions to accelerate progress towards a sustainable and equitable financial system in Aotearoa New Zealand.

About Mindful Money: Mindful Money is a charity that aims to make investment a force for good. It provides the public with free transparency on over 1000 KiwiSaver and investment fund portfolios, undertakes research, and advocates for a policy framework that switches investment from fossil fuels and high emissions to climate solutions.

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