Responsible Investment News

Carbon exclusions boost NZ Super return

Whineray told the recent Finance and Expenditure Select Committee during the annual NZS review that the “portfolio is 30 basis points per year better off, which is, we’ll call it, a few hundred million dollars because of the removal of those companies from our portfolio”.

“We don’t make a lot of noise about that, because it is a short period of time, but there’s no doubt that it has improved the performance of the portfolio to date,” he said.

NZS shifted its passive global equities holdings, which represent about 60 per cent of total fund assets, to low-carbon settings in 2017.

The move saw NZS divest about $700 million from underlying stocks with high carbon reserves or ‘emissions intensity’.

“We’ve got a very long horizon,” Whineray told the select committee. “We care about what these things are worth over the long term. We generally think markets are pretty good at pricing information. We don’t think they’re particularly good in the climate space.”

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