Source: Mindful Money
Aotearoa New Zealand’s institutional investors are making significant strides in climate governance and emissions reporting, but remain cautious in translating climate ambition into investment action, according to the 2025 Survey of Investor Climate Policies and Actions released today.
The survey, conducted by the Centre for Sustainable Finance, Mindful Money, and Investor Group on Climate Change (IGCC), captures the views and practices of 27 major New Zealand investors, representing over $263 billion in assets under management—more than half of the country’s total.
The findings show a marked improvement in climate governance:
- 91% of investors reported board-level awareness of climate risks and strategies;
- Nearly half (48%) have now set net zero targets, up from 30% in 2023; and
- 93% are measuring at least some of the emissions associated with their portfolios.
However, the report highlights a persistent gap between climate risk awareness and capital allocation:
- 17% of investors currently invest in climate solutions such as renewable energy or low-carbon infrastructure; and
- 13% have set public targets to increase these investments.
“New Zealand investors clearly understand the financial imperative of managing climate risk,” said Barry Coates, CEO of Mindful Money. “But despite falling costs and rising opportunities in clean technologies, investment in climate solutions remains low. This is potentially a missed opportunity for both returns and impact.”
The survey identifies key barriers to climate-aligned investing, including regulatory uncertainty, lack of clear definitions, and limited data—particularly for private and alternative asset classes. While the introduction of mandatory Climate-Related Disclosures (CRD) has driven improvements in emissions tracking, many investors are still navigating the complexities of the new reporting regime.
Public pressure is also mounting. Recent surveys show that 74% of New Zealanders expect their fund managers to reach net zero before 2050. Yet, the report notes that few investors have escalation strategies when companies fail to act on climate, and shareholder activism remains limited compared to Australia.
“Investors are responding to fiduciary duty and risk management, but they’re also hearing the call from clients and the public,” said Duncan Paterson, Director of Investor Practice at IGCC. “The next step is to move from measurement to meaningful investment in the transition.”
The report also underscores the importance of policy stability. While New Zealand’s legislative framework remains intact, recent political shifts have introduced uncertainty. Two-thirds of investors surveyed have engaged in climate policy advocacy over the past year, signalling a growing recognition of the finance sector’s role in shaping a supportive policy environment.
As global standards evolve and expectations rise, the report calls for stronger alignment between climate ambition and investment practice. With the right tools, data, and policy signals, New Zealand’s investors are well-positioned to lead in financing a resilient, low-emissions economy.
Notes:
A webinar will be held at 11am on Tuesday, 2nd September. Over 250 people have registered so far. Register for the webinar here: https://loghic.eventsair.com/773665/128311/Site/Register
About CSF
The Centre for Sustainable Finance is an independently governed charitable trust, founded in 2021, which works with partners across the finance system to enable and accelerate capital flows towards sustainability and resilience outcomes across key sectors of New Zealand’s economy.
About Mindful Money
Mindful Money is a charity that promotes ethical and impact investment in New Zealand. It provides transparency for KiwiSaver and managed fund investors on portfolio holdings, together with public education and engagement. Mindful Money provides services to the financial sector including research on the integration of climate change into investment portfolios.
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. IGCC represents investors with total funds under management of over $5 trillion in Australia and New Zealand and $35 trillion globally. IGCC members’ beneficiaries include more than 14.8 million Australians and millions more New Zealanders.
