Kiwisaver

New research shows New Zealanders are standing firm in their commitment to ethical investment, with three-quarters wanting their money invested according to their values, even as political movements in some countries attempt to undermine responsible investing frameworks.

RIAA broadly supports capital market reform to remove policy barriers for KiwiSaver funds to invest in private assets.

Ahead of a world-first Nature Positive Summit hosted by the Australian federal and New South Wales state governments next month, the Responsible Investment Association of Australasia (RIAA) today launched a toolkit to help investors assess and act on nature-related risks and opportunities in their portfolios. The Nature Investor Toolkit was created by RIAA’s Nature Working Group, drawn from RIAA’s membership base of super funds, KiwiSaver providers, investment managers, impact investors and others. The aim of the toolkit is to educate investors on this complex and rapidly evolving area, help investors assess nature-related risks and opportunities, prepare investors to hold constructive conversations with investees about impacts and dependencies on nature, and build and communicate the business case for investing in nature positive solutions. Estelle Parker, Co-CEO at RIAA, said “Investors are embracing the twin challenges of net zero and nature positive, but are aware that the size and scope of the tasks at hand require focus, clarity and understanding how to apply frameworks such as the Taskforce on Nature-related Financial Disclosures (TNFD), which can be leveraged to identify material risks and new and existing opportunities in their portfolios.” “This toolkit outlines practical steps and key resources to aid investors, as well as highlighting the importance of putting Indigenous Peoples and Local Communities at the centre of the discussion.”

The Responsible Investment Association Australasia (RIAA) has taken a monumental step in advancing responsible investing in New Zealand by establishing the Aotearoa Collaborative Working Group. As the landscape of responsible investment in New Zealand has rapidly evolved over the past three years, RIAA’s proactive approach continues to reshape the industry, as it establishes the Aotearoa working group to collaborate and share leading practices and knowledge. With RIAA members now accounting for over 70% of the New Zealand market, and a substantial 64% of Kiwisaver funds invested in RIAA certified funds, the launch of the working group serves as a vital progression towards fostering a thriving economy, environment and society surrounding responsible investment.

Paul Gregory keynote speech & the role of third party verification in the fight against greenwashing

Investors want to do well and do good In the face of financial market turbulence, consumer demand for ethical investing not only remains resilient but continues to gain momentum. Consumers not only want to avoid investing in companies that cause harm, they are increasingly also looking to invest in KiwiSaver and investment funds that do good. This is the fifth annual survey of the New Zealand public undertaken by Mindful Money and the Responsible Investment Association of Australasia (RIAA). The survey, conducted by market researcher, Dynata, provides valuable research, trends and insights for the finance sector and public audiences. Read full press release for key findings of the survey.

Three-quarters of New Zealanders expect their KiwiSaver and investment funds to be invested ethically, with the majority considering moving funds if their values and interests do not align. This is one of the key findings of the new consumer survey by the Responsible Investment Association Australasia (RIAA) and Mindful Money. From Values to Riches 2022: Charting consumer demand for responsible investing in Aotearoa New Zealand, undertaken by Dynata, highlights that investors are not only looking for their fund providers to do well – they are looking for funds that also do good. 62% of New Zealanders report it is important to them that their investment makes a positive difference in the world. Expectations are higher among women (80%) than men (63%) and are highest among young people aged 18-24 (78%) who believe responsible investments will outperform traditional funds over the long term. Simon O’Connor, CEO at RIAA said: “This survey shows that half the population are apprehensive that fund providers are greenwashing and making misleading claims, and are demanding that their providers can back up their claims. Consumers have awoken to the opportunity to invest in line with their values but are also much more attuned to cut through the spin to find products that deliver on the most important issues for them. Three-quarters of New Zealanders expect their KiwiSaver and investment funds to be invested ethically, with the majority considering moving funds if their values and interests do not align. This is one of the key findings of the new consumer survey by the Responsible Investment Association Australasia (RIAA) and Mindful Money. From Values to Riches 2022: Charting consumer demand for responsible investing in Aotearoa New Zealand, undertaken by Dynata, highlights that investors are not only looking for their fund providers to do well – they are looking for funds that also do good. 62% of New Zealanders report it is important to them that their investment makes a positive difference in the world. Expectations are higher among women (80%) than men (63%) and are highest among young people aged 18-24 (78%) who believe responsible investments will outperform traditional funds over the long term. Simon O’Connor, CEO at RIAA said: “This survey shows that half the population are apprehensive that fund providers are greenwashing and making misleading claims, and are demanding that their providers can back up their claims. Consumers have awoken to the opportunity to invest in line with their values but are also much more attuned to cut through the spin to find products that deliver on the most important issues for them. “More than half of the population (54%) would be more willing to invest ethically and responsibly if financial products were certified or labelled as responsible or ethical by an independent third party. With the barrage of new ethical investment products in the market, consumers are increasingly questioning sustainability claims made by investment managers. They’re looking to trusted third parties like RIAA’s Responsible Investment Certification Program to do the heavy lifting, to make sure they are delivering on their claims.”

The Responsible Investment Association Australasia (RIAA) has welcomed the Sustainable Finance Forum’s Roadmap Action Plan launched today in New Zealand. “The financial sector has a central role to play in contributing to New Zealand’s long term social, environmental and economic wellbeing and prosperity. This Roadmap lays the foundation for ensuringfinance plays its part in delivering a sustainable, net-zero economy” said Simon O’Connor, CEO of the Responsible Investment Association Australasia (RIAA). “Once implemented, this Plan will position New Zealand as a global leader in sustainable finance, and build the resilience of its capital markets into the future”. “We welcome the recommendation that definitions of sustainable finance products be further standardised, acknowledging the need for consumers to have confidence that products are delivering on claims and are true to label.” “In particular, we welcome the specific recommendation that RIAA’s long running Responsible Investment Certification Program play a key role as a requirement for all default KiwiSaver providers, as well as for other investors making responsible investment claims. The importance of such assurance was underscored in our consumer research launched last week that showed that 82% of New Zealand consumers would be more likely to invest in a product certified by a third party.”

As New Zealand prepares to release its sustainable finance roadmap, new research shows that more than three-quarters (78%) of New Zealanders with KiwiSaver or other investments believe that ethical or responsible investments perform better in the long term. The new study, conducted by Dynata for Mindful Money and the Responsible Investment Association Australasia (RIAA), highlights the significant consumer demand for responsible and ethical investment, as the industry continues to grow in its size and influence. The study finds that savings could be boosted if people see a positive social or environmental benefit from their investments. Nearly two-thirds of New Zealanders would be motivated to save and invest more money if they knew their savings and investments made a positive difference in the world. “We are seeing overwhelming support from consumers for their hard-earned money to achieve positive outcomes and to avoid causing harm” said RIAA CEO Simon O’Connor. “In an important signal to New Zealand’s KiwiSaver, banking and wealth management sectors, 58% of New Zealanders would consider switching their KiwiSaver or other investments to another provider if their current fund engaged in activities inconsistent with their values.” “Demand for ethical investing remains strong through the COVID pandemic” says Mindful Money’s founder and CEO, Barry Coates. “Over 90% of those who do not perceive to currently have an ethical investment fund are intending to invest ethically, most of them within the next year. This is evidence of strong growth in the consumer movement.”

Commerce and Consumer Affairs Minister Kris Faafoi has announced that from December 2021 ‘KiwiSaver’ accounts will no longer include companies involved in fossil fuel production. What does this mean in investment practice?