New Zealand’s institutional investors are progressing in climate governance and emissions reporting, yet they continue to be cautious when it comes to converting climate ambitions into concrete investment decisions, the 2025 Survey of Investor Climate Policies and Actions said.
Conducted by the Centre for Sustainable Finance, Mindful Money, and the Investor Group on Climate Change (IGCC), the survey reflects the perspectives and practices of 27 leading New Zealand investors, who collectively manage assets exceeding $263 billion. This accounts for more than half of the nation’s total assets under management.
The survey reveals an advancement in climate governance, with 91% of investors indicating that their boards are aware of climate risks and strategies.
48% said they have established net zero targets, an increase from 30% in 2023, and 93% are tracking at least some of the emissions linked to their investment portfolios.
However, the report emphasises an ongoing disconnect between awareness of climate risks and the allocation of capital.
17% of investors are presently investing in climate solutions like renewable energy or low-carbon infrastructure, while 13% have publicly committed to targets aimed at boosting these investments.
“New Zealand investors clearly understand the financial imperative of managing climate risk,” Mindful Money chief executive Barry Coates said.
“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 pinpointed major obstacles to climate-aligned investing, such as regulatory uncertainty, unclear definitions, and insufficient data especially for private and alternative asset categories.
Public pressure is increasing, with recent surveys indicating that 74% of New Zealanders expect their fund managers to achieve net zero by 2050. However, the report points out that only a small number of investors have escalation strategies for companies that do not take climate action, and shareholder activism is still less prevalent than in Australia.
“Investors are responding to fiduciary duty and risk management, but they’re also hearing the call from clients and the public,” IGCC’s Duncan Paterson said.
“The next step is to move from measurement to meaningful investment in the transition.”
The report urges a closer alignment between climate ambitions and investment practices. Having the appropriate tools, data, and policy guidance, New Zealand’s investors are well placed to lead in funding a resilient, low-emissions economy.