MEDIA: Investing for climate action: the greening of global finance

Written by Nicola Shepheard for NBR

Fund managers and asset owners in New Zealand are trailing globally when it comes to fully weaving climate considerations into their portfolios, but there are signs that could change quickly, one expert says.

And increasingly Kiwi businesses will need to have their climate house in order – including having a realistic plan for transitioning to net zero – to attract high quality finance, says Tom Arup, a director of the Investor Group for Climate Change (IGCC), a group of 90 investors in Australia and New Zealand focused how climate change affects the financial value of investments.

Members have total funds under management of over A$2 trillion in Australasia, covering 7.5 million people in the two countries, and A$20t around the world.

The investor group is part of the new Aotearoa New Zealand Investor Coalition for Net Zero, launched in October to speed up climate action by asset owners and fund managers to reduce their funds’ emissions.

Its other members are Mindful Money (convenor) and Toitū Tahua: Centre for Sustainable Finance, supported by the New Zealand Sustainable Business Council, Sustainable Business Network, Responsible Investment Association of Australasia (RIAA) and Toitū Envirocare.

Read the full article here.