How To Find a Fossil Fuel Free Fund
The transition to zero emissions will require a massive shift from fossil fuels to clean energy. Investors can avoid fossil fuel companies and instead choose to invest in fossil free KiwiSaver and investment funds.
Free your funds from fossil fuels
Mindful Money's calculations show that $1.15 billion of KiwiSaver money and $1.3 billion of other NZ retail investment funds is invested in companies that are involved in fossil fuel extraction and production (analysis of March 2021 data). If you don’t want your money to be part of it, switch to one of the funds listed below and join the global divestment movement.
Climate change stems from a serious economic failure to live within our ecological boundaries, and economic solutions are needed to regain a stable climate. Finance is central to those changes. Money fuels the economy, so the challenge is to direct the flows of funds to businesses that will reduce emissions and invest in adapting to a far more volatile climate.
It’s not only a sound moral decision to help stop greenhouse gas emissions to avoid climate catastrophe, but a sound financial decision – up to 80% of fossil fuel reserves are at risk from becoming stranded assets, with little value as fossil fuels are phased out. Authoritative research
shows that divestment from fossil fuels in recent decades has not resulted in lower returns and we have recently shown the evidence of a huge financial loss experienced by investors in the coal, oil and gas sectors.
Going fossil free is good for your returns and good for the future of our planet. And it's easy!
The following is a list of those funds that have a policy to avoid investing in fossil fuel producers, and have fully excluded them from their portfolio (Mindful Money measures the level of investment down to 0.01% of the portfolio).
Funds that can show they have no investment in fossil fuels can now use our new fossil fuel free badge. Look for the badge above to be certain of who is putting their money where their mouth is.
- Mindful Funds are the ones with
Fund with Fossil Fuel Free Badges
KiwiSaver funds:
Investment funds:
- Devon Sustainability Fund
- Harbour Sustainable NZ Shares Fund
- Macquarie Ethical Leaders Global Shares Fund
- Macquarie Ethical Leaders NZ Shares Fund
- Lighthouse Global Equity Fund
- TAHITO Te Tai o Rehua Fund
KiwiSaver Funds with Fossil Free policy and portfolio
AMP:
- AMP Australasian Shares Fund
- AMP International Shares Fund
- AMP International Shares Fund No. 2
Booster:
- Booster Socially Responsible Investment Balanced Fund
- Booster Socially Responsible Investment High Growth Fund
- Booster Socially Responsible Investment Moderate Fund
Mint via InvestNow:
- InvestNow Mint Australasian Equity fund
- InvestNow Mint Diversified Growth Fund
NZ Funds:
- NZ Funds Growth Strategy
- NZ Funds Balanced Fund
- NZ Funds Inflation Strategy
Switch to one of the funds listed above or use the Fund Finder to find a KiwiSaver fund that matches your criteria.
Investment Funds with Fossil Free policy and portfolio
AMP:
- AMP International Shares Fund
- AMP Australasian Shares Fund
Booster:
- Booster Socially Responsible Investment Balanced Fund
- Booster Socially Responsible Investment High Growth Fund
- Booster Socially Responsible Investment Moderate Fund
Mint:
- Mint New Zealand SRI Equity Fund
- Mint Australasian Equity Fund
- Mint Diversified Growth Fund
NZ Funds:
- NZ Funds Core Inflation Portfolio
- NZ Funds Equity Inflation Portfolio
- NZ Funds Property Inflation Portfolio
- NZ Funds Core Growth Portfolio
- NZ Funds Global Equity Growth Portfolio
- NZ Funds Dividend And Growth Portfolio
- NZ Funds Wealthbuilder - Inflation Strategy
- NZ Funds Wealthbuilder - Growth Strategy
- NZ Funds Income Generator
Pathfinder:
- Pathfinder Global Responsibility Fund
- Pathfinder Global Water Fund
- Pathfinder Ethical Growth Fund
- Pathfinder Ethical Trans-Tasman Fund
Simplicity:
Trust Management:
- Trust Management ESG Sustainable Australasian Share fund
Switch to one of the funds listed above or use the Fund Finder to find an investment fund that matches your criteria.
The Global Divestment Campaign
The global divestment campaign has seen institutions (such as Auckland and Dunedin Councils; Otago, Victoria and Auckland Universities; the Anglican Church), countries (like Ireland) and investment funds go “fossil free”. As at end 2021, $40 trillion of investment funds had been divested worldwide. The campaign is not only de-legitimising the fossil fuel industry, it is speeding up the phase out of coal and oil and gas. You can join the NZ campaign for institutions to divest through our partner organisation, 350 Aotearoa.
For more background, visit the our blogs Myths about Divestment, Who caused Climate Change and Financing Zero.
