The 2025 Survey of Investor Climate Policies and Actions reveals that institutional investors in New Zealand are advancing in climate governance and emissions reporting, but exhibit caution in aligning their investments with climate goals.
The survey was conducted by the Centre for Sustainable Finance, Mindful Money, and Investor Group on Climate Change (IGCC).
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The survey reflects the perspectives of 27 major investors with more than NZ$263bn ($155.2bn) in assets under management.
Notably, 91% of investors have board-level awareness of climate risks and strategies, and 48% have set net zero targets, up from 30% in 2023.
Despite these advancements, the survey points out a notable discrepancy between the recognition of climate risks and the allocation of capital towards climate solutions.
Only 17% of investors are currently investing in renewable energy or low-carbon infrastructure, while 13% have set public targets to increase such investments.
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By GlobalDataMindful Money CEO Barry Coates said: “New Zealand investors clearly understand the financial imperative of managing climate risk.
“But despite falling costs and rising opportunities in clean technologies, investment in climate solutions remains low. This is a missed opportunity for both returns and impact.”
The report identifies regulatory uncertainty, the absence of clear definitions, and a scarcity of data, especially for private and alternative asset classes, as the main obstacles to climate-aligned investing.
The introduction of mandatory climate-related disclosures (CRD) has led to better emissions tracking, yet investors are still grappling with the complexities of this new reporting framework.
Public expectations are also intensifying, with 74% of New Zealanders anticipating their fund managers to achieve net zero before 2050.
However, the report notes that only a few investors have strategies to escalate actions when companies fail to address climate issues, and shareholder activism is less prevalent than in neighbouring Australia.
The report also highlights the crucial role of policy stability, pointing out that recent political changes have injected a degree of uncertainty.
Two-thirds of the investors surveyed have participated in climate policy advocacy in the past year, recognising the financial sector’s influence in fostering a supportive policy environment.
As international standards progress and expectations increase, the report calls for a stronger link between climate ambition and investment practices.
With appropriate tools, data, and policy guidance, New Zealand’s investors are in a prime position to lead the transition to a resilient, low-emissions economy.
IGCC investor practice director Duncan Paterson said: “Investors are responding to fiduciary duty and risk management, but they’re also hearing the call from clients and the public.
“The next step is to move from measurement to meaningful investment in the transition.”
