Invest for good 

Responsible and ethical investing in New Zealand has reached a critical point.

New Zealand now has $188 billion allocated across capital markets in accordance with environmental, social, governance and ethical factors. This is the highest proportion of financial markets covered by responsible investing strategies of any market across the globe. In this context, it is tempting to suggest this once niche style of investing has become mainstream.

Yet, as an industry, we’re far from having completed the task.

Some of the most dramatic moments from last week’s G-20 summit in Osaka, Japan, turned on the debate about climate change, with U.S. President Donald Trump split from his counterparts on the need for action.

But when it comes to impact on the environment, Trump isn’t the G-20 leader with the highest carbon footprint, according to an analysis of international flights taken by leaders of the group in 2018. That unwanted prize belongs to Japan Prime Minister Shinzo Abe, who traveled almost 130,000 miles last year.

Initially driven by big pension funds in Australia, New Zealand, Europe and North America for various reasons, some political, fund managers are increasingly looking at how companies are handling the inevitable transition to a lower-carbon world as a risk-assessment tool.