Three Climate Actions Every Kiwi Investor Can Make

This year's Climate Action Day comes at a time when floods, fires, lethal heat and cyclones are devastating the lives of millions of vulnerable people, and wreaking havoc on our oceans, glaciers, forests and species.

Kiwis can reduce their own contribution by choosing not to invest in the companies causing the most damage

1. Stop Funding the Fossil Fools

Our analysis shows that over a billion dollars of KiwiSaver funds are currently invested in major climate polluters. These companies continue to increase their emissions instead of transitioning to renewable energy.

The numbers are stark: just 57 oil, gas, coal, and cement producers are directly linked to 80% of the world's global fossil CO2 emissions since the 2015 Paris climate agreement.

The five largest emitters between 2016 and 2022 were Shell, ExxonMobil, Chevron, BP, and TotalEnergies.

Our research across all 376 KiwiSaver funds shows that $3.75 billion is invested in fossil fuel companies, with more than a third of that in companies still expanding their production.

Not only does this fuel climate change, but it also poses significant financial risks from future declines in demand for fossil fuels and stranded assets - the reserves and production infrastructure that will become worthless as renewable energy replaces fossil fuels.  

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2. Don't Be Fooled by Greenwashing

Our surveys show that over half of Kiwis are concerned about greenwashing—misleading claims that companies or funds are 'climate friendly,' 'green,' or 'sustainable.' While other countries are taking action against such deceptive practices, New Zealand lags behind.

For context, the Australian Securities and Investment Commission (ASIC) has taken 47 regulatory actions against greenwashing in the past 15 months, including a $14 million fine for global fund manager Vanguard. Meanwhile, New Zealand's Financial Markets Authority (FMA) has yet to take concrete action despite repeated warnings.

"Most funds in New Zealand claim to use some form of Environmental, Social and Governance (ESG) management in their investment," explains Coates. "But these ESG claims are not consistent with investment portfolios that contain companies destroying the world's climate and facing huge financial risks."

3. Support the Fossil Fuel Treaty

We believe international cooperation is crucial to stop major fossil fuel companies from blocking progress towards renewable energy investment. The proposed Fossil Fuel Non-Proliferation Treaty aims to manage a global transition to a safe and affordable energy future for all. Already, 14 governments and thousands of civil society leaders have endorsed it, including Wellington City Council and Kāpiti Coast District Council.

"The Treaty is important to focus government attention on the fossil fuel industry," notes Coates. "For the third year in a row, the next climate summit in December 2024 will be held in a country producing oil and gas (Azerbaijan). Fossil fuel lobbyists will again be given privileged access. The Fossil Fuel Treaty is a way to bring the issues of fossil fuel phaseout into the climate negotiations."