Invest for climate action
Invest for climate action: Free your funds from fossil fuels
Mindful Money's calculations show that $961 million of KiwiSaver money and $622 million of other NZ managed funds is invested in companies that are involved in fossil fuel extraction and production (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 April 2020, $14 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.
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 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.
Note: 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.
KiwiSaver Mindful Funds with a Fossil Fuel Free Policy
Booster Socially Responsible Investment Balanced Fund
Booster Socially Responsible Investment High Growth Fund
Booster Socially Responsible Investment Moderate Fund
QuayStreet Socially Responsible Investment Fund
Simplicity Guaranteed Income Fund
Managed Mindful Funds with a Fossil Fuel Free Policy
AMP Capital Ethical Investment Leaders Global Shares Fund
AMP Capital Ethical Investment Leaders Hedged Global Fixed Interest Fund
AMP Capital Ethical Investment Leaders NZ Shares Fund
AMP Capital Ethical Investment Leaders Balanced Fund
AMP Capital Ethical Investment Leaders Conservative Fund
Booster Socially Responsible Investment Balanced Fund
Booster Socially Responsible Investment High Growth Fund
Booster Socially Responsible Investment Moderate Fund
Pathfinder Global Responsibility Fund
QuayStreet Socially Responsible Investment Fund
Simplicity Balanced Investment Fund
Simplicity Conservative Investment Fund
Simplicity Growth Investment Fund
There are other funds that have a different approach. Instead of divesting, they engage with the companies they invest in to improve their performance (e.g. 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 Asset Management and Hunter also have fossil-free investment policies.
For more background, visit the blogs Myths about Divestment, Who caused Climate Change and Financing Zero on Mindful Money.
