Invest for climate action

Invest for climate action: Free your funds from fossil fuels

$961 million of KiwiSaver money and $623 million of retail investment funds is invested in companies involved in fossil fuel extraction and production (according to our analysis of March 2020 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 to invest in adapting to a far more volatile climate.

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 August 2020, $15 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. Join the NZ campaign through our partner organisation, 350 Aotearoa.

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 there are compelling reasons for divesting now. Going fossil free is good for you and good for the future of our planet. We have recently shown the evidence of a huge financial loss experienced by investors in the coal, oil and gas sectors.

Now you can go fossil free with your KiwiSaver or other investment portfolio. The funds below all have a fossil free policy. Our research has found that not all of these funds are entirely free from fossil fuels yet - some have a few companies in their indirect holdings and are working to divest completely.

Switch to one of the funds listed below or use the Fund Finder to find a KiwiSaver fund or other investment fund that matches your criteria.

Or you can use our Fund Finder to find the KiwiSaver fund that fits your criteria.

Find a fund that fits your values »

There are other funds that have a different approach. Instead of divesting, they engage with the companies they invest in to improve their performance (eg. in switching their business to more renewable energy). These “higher standards” companies on the Mindful Money website are certified for their fund management and engagement:

  • Kiwi Wealth
  • Mercer

Note: Medical Assurance Society, Whai Rawa, NZ Funds, Mint and Hunter also have fossil-free policies.

For more background, visit the blogs Myths about Divestment, Who caused Climate Change and Financing Zero on Mindful Money.

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Investing involves risk. The value of investments can go down, as well as going up. You might lose some of your capital invested. The information provided on this website is not a recommendation to buy, sell or hold any financial products. Nothing on this page is financial advice for the purposes of the Financial Advisers Act 2008 and any associated regulations.

Before investing, consider your investment aims, your values and your risk preferences. You should read the Product Disclosure Statement for the investment fund carefully. It contains the fund’s investment objectives, risks, fees and other information which you should know before investing. This website has a list of the advisers that are registered with the Responsible Investment Association of Australasia. You should contact an investment adviser before investing if you have questions or if you are unclear about the implications of your investment decision.