Overview
Mindful Money’s Mission is “To Make Money a Force for Good”. Our aim is to help people direct their savings away from harm towards positive outcomes. Our annual consumer survey shows that Kiwis want to invest in a fund that provides positive outcomes (76% in 2025). Now, more fund providers are actively investing in companies that have positive outcomes for health, nature, the climate and communities. We particularly want to encourage providers to invest more in entities that are working in Aotearoa; meaning that the savings of us all improve outcomes where we live.
‘Positive Outcomes’ information
Positive outcomes companies generate both long-term financial returns and non-financial positive outcomes. Mindful Money has identified entities from NZ and across the globe that receive the majority of their revenue from providing ‘positive outcomes’ in five categories that matter for people and the planet. These outcomes include improving healthcare, providing housing or innovating to solve climate change, reducing waste and improving the management of water and nature.
The threshold for revenues from positive outcome activities is intentionally high to ensure there is genuine impact on communities and the environment, and not simply marketing claims.
The number of companies is relatively small (much smaller than the companies of concern). All these companies can be invested in by a KiwiSaver or other retail fund provider. Our website shows the percentage invested in these ‘best of breed’ entities and the category of positive outcome for each.
Approach to Positive Outcomes
What are the principles for Mindful Money’s framework?
Credibility: A key test is that anyone could agree the positive outcome entity delivers high levels of positive outcomes from its activities.
Evidence based: We have reviewed each candidate in-depth to find clear evidence they meet our criteria. We looked at reporting by the entity, reviews by external data providers, and reports by leading NGOs.
Simplicity and transparency: We identified five overall categories to reflect activities delivering clear outcomes for a better world. Our criteria are relatively simple. Our website shows users the percentage of the qualifying positive outcome entities in the total portfolio.
Reflecting global best practice: We considered the framework from the Global Impact Investing Network (GIIN) principles for Impact Investment: “made with the intention to generate positive, measurable, social and/or environmental impact alongside a financial return.” We also looked at global frameworks, e.g EU sustainability frameworks and UN Sustainable Development Goals (SDGs).
Shifting capital flows: We want to grow investment flows to entities delivering positive outcomes anywhere in the world. For listed companies, stronger investment demand increases the share price to give the company a lower cost of capital for new projects. For unlisted companies, the effect of new investment is more direct; new investment directly funds innovation and growth. In particular, we think there is a bigger role for NZ providers to support innovative New Zealand companies which have more impact for NZ.
Core Selection Criteria
Eligible entities:
The whole entity must qualify. We have included these investment classes used by NZ retail funds:
- Listed companies (i.e. companies whose shares can be bought and sold on a stock exchange). We add up all investment in these across equity and bond holdings. Investment in these entities indirectly leads to growth in positive outcomes.
- Unlisted companies that are directly or indirectly invested in by a NZ retail fund. These are companies that a wholesale fund (sometimes called a Venture Capital fund) has invested in. A NZ retail fund can choose to invest some of the portfolio in one of these wholesale funds. Investment in these entities directly supports the development and delivery of positive outcomes.
- Public entities that directly fund or deliver social benefits, e.g. Housing Australia.
- Standalone funding vehicles that provide finance directly towards positive outcomes.
We have not included:
- Green or social bonds from companies that do not meet our criteria.
- Subsidiaries or business divisions of a company or joint ventures - unless the subsidiary has its own listing on a stock exchange.
Key criteria:
- Undertake activities in one or more of the categories (see below).
- Get most of their revenue from these activities. For most categories, revenue from ‘positive outcome’ activities must be more than 67% (but some categories have higher thresholds).
- Evidence of innovation that creates step-change in levels of positive activity or that can transform the environmental sustainability of a sector.
However, any entity must also:
- Do No Significant Harm (DNSH): a positive outcome activity must not also do significant harm, e.g. a new renewable energy project cannot cause major biodiversity loss.
- Not be on Mindful Money’s Companies of Concern list (e.g. due to serious failings in the overall way a company is run, which is also called ‘governance’).
Categories for Positive Outcomes
We based categories on those the NZ public would like to invest in (based on our survey). Our environmental categories align with the six categories in the EU Taxonomy. Our social categories reflect some of the key targets for UN Sustainable Development Goals (SDGs).
The five themes for Positive Outcome companies
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Circular economy |
Sub-Categories and Criteria: Share & Re-use Systems: products designed and made in ways that support repeated re-use and repair, or are designed for rental rather than purchase. Innovative Products/Design: products and packaging manufactured using biodegradable materials or other sustainability innovation. Waste Product Re-use: turning waste into material for use in new products. |
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Climate solutions |
Sub-categories and criteria: Supply of Renewable Energy: Renewable generation ≥ 80% of total generation or supply from solar, wind, hydro power, geothermal and biofuels using waste material. Energy Storage or Equipment Solutions: equipment to make or use renewable energy, e.g. solar panels, wind turbines or batteries, fuel cells, smart grids. Innovative Products, Technologies or Solutions: products that support electrification to reduce reliance on fossil fuel sources or to improve energy efficiency. |
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Community development |
Sub-Categories and Criteria: Housing: Social Housing: rental accommodation provided at below-market rates for people receiving welfare benefits or with low incomes or specific housing needs. Affordable Housing: rental payments are ≤ 30% of median household income for the area. Build to Rent Developments: constructed to high standards for environmental and health performance, and with features to support long-term tenancies and community life. Access to Education: providing more equitable access to education, aligned with SDG4 targets, e.g. ensuring all youth achieve literacy and numeracy, with a focus on marginalised groups. Human Rights - Sustainable & Social Development: initiatives that improve outcomes and reduce discrimination for disadvantaged groups (e.g. female equity, LGBTQIA+, social or ethnic minorities, indigenous peoples, and refugees). |
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Health |
Sub-Categories and Criteria: 1) Healthcare Access: Focus on providing treatments for priority conditions to under-served populations (as outlined in SDG3 targets). Selected using the Access to Medicines Index - with a high threshold for the total index score. 2) Innovation in Treatments: New treatment options for key SDG3 targets; infectious diseases, non-communicable diseases, mental health and conditions relating to ageing. Focus on options that can improve efficiency for public health budgets. 3) Innovation in Devices or Equipment: new devices or equipment that improve outcomes for patients and public health systems, e.g. improve quality of life, provide earlier diagnosis, are better for patients, reduce overall treatment costs for public health. |
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Water and nature |
Sub-categories and criteria: Water: Innovation in Water Treatment or Sanitation Services: in line with SDG6. Wastewater treatment should remove at least 95% of contaminants including nitrogen and phosphorus and PFAs. Access to Water for Underserved Communities: focus on providing new access to water or new technologies to make it easier to bring supply to communities. Solving challenges for sustainable supply of water: innovations to improve efficiency of water use in regions where there is high-risk of water scarcity. Ecosystem regeneration: covers entities and finance solutions that are focused on regenerating forests, wetlands, river and ocean ecosystems. |
Sources for evidence of Positive Outcomes
- Mindful Money’s internal research (e.g. global renewable energy companies, social housing providers, health innovators).
- Candidates suggested by pilot Mindful Funds (including within venture capital and private equity funds).
- Morningstar Sustainalytics’ Impact Tool and databases such as Robeco and Upright.
- Analysis of leading NZ wholesale venture capital funds provided by managers like Icehouse, Motion Capital, Climate Venture Capital Fund and others.
- Holdings in leading international retail impact funds (e.g. WHEB Sustainability Impact Fund).
- Authoritated NGO Reports (e.g. Biennial Access to Medicines Index).
Process and Evolution
After review of a long list and consultation with sector experts and fund managers we have created a starting final list of 200 entities. Mindful Money will update the list at the same time as we review our Companies of Concern in our six monthly cycle. Refreshed analysis will be issued in July and December each year. In the future we may add new categories or sub-categories.
We welcome feedback and questions on this framework.