Invest for good 

Roughly 200 of New Zealand’s biggest companies and financial organisations will be made to report on climate change risk, Climate Change Minister James Shaw has announced.

The policy will force large financial organisations in New Zealand to disclose how exposed their business and investments are to climate change-related risk. Some entities, such as the NZ Super Fund, are already proactively disclosing such risks, ahead of the mandatory regime.

In recent years, a group of economists, ecologists, and anthropologists has gained attention for trying to overturn a core tenet of economic policy — that growth is good for everyone. Known as the “degrowth” movement, these scholars suggest a reframing of humanity’s goals along ecological lines to address the climate crisis, along with a reconsideration of using gross domestic product as a metric for progress. The upheaval of the coronavirus crisis has added fuel to the debate.

Amongst the uncertain times we find ourselves in, it’s no wonder the Commission For Financial Capability is telling us they are witnessing a flood of questions about money, and have aptly themed this year’s Sorted Money Week ‘Just Wondering’. In times like these, clients want to avoid risk, are inclined to rush to ‘safe’ assets, and want to be sure their money is being managed well.

So which investment approach can provide this for clients?