The oil and gas business has a strong future despite substantial divestment by the New Zealand Super Fund, the lead industry body says.
The $35 billion fund has substantially or completely withdrawn from 300 companies, including some of the world's biggest oil companies such as Exxon Mobil, Shell, BP and Statoil, calling them risky investments.
The move, affecting the fund's $14bn passive equity portfolio, involved about $950 million in shares.
It said it feared its value might be at risk if too much money was tied up in oil and gas.
The fund's chief investment officer, Matt Whineray, said there was a significant risk, which had not been factored into the market. The worry was that climate change jitters would dry up economic returns from oil and gas companies and cause their share prices to shrink over time.
The Petroleum Production and Exploration Association said that was just one opinion, however, and other investors thought oil and gas still had bright prospects.