Institutional investors in New Zealand are demonstrating increased engagement with climate governance and emissions measurement, yet actual investment in climate-focused assets remains limited, according to a new industry survey.
The 2025 Survey of Investor Climate Policies and Actions – conducted by the Centre for Sustainable Finance, Mindful Money, and the Investor Group on Climate Change (IGCC) – reflects the perspectives of 27 major investors overseeing more than $263 billion in assets – over half of the nation’s total managed funds.
The survey found that 91% of respondents have board-level oversight of climate risk and strategy, and 48% have established net zero targets, up from 30% the previous year.
In addition, 93% are tracking at least some portfolio emissions, indicating a broadening commitment to climate-related disclosures.
Despite these developments, the survey identified a gap between climate risk awareness and the allocation of capital to climate solutions.
Only 17% of participants currently invest in areas such as renewable energy or low-carbon infrastructure, while just 13% have set public targets to increase such investments.
“New Zealand investors clearly understand the financial imperative of managing climate risk,” said Mindful Money Barry Coates. “But despite falling costs and rising opportunities in clean technologies, investment in climate solutions remains low. This is potentially a missed opportunity for both returns and impact.”
The survey pointed to several obstacles hindering greater investment in climate-aligned assets.
These include regulatory uncertainties, the absence of standardized definitions, and data limitations – particularly in private and alternative investments.
The introduction of mandatory Climate-Related Disclosures (CRD) has improved emissions reporting, but many investors are still adapting to the requirements of the new framework.
Public expectations are also shaping industry behaviour. Recent polling indicated that 74% of New Zealanders expect their fund managers to achieve net zero before 2050.
However, the report noted that escalation strategies for companies lagging on climate action are rare, and shareholder engagement on climate issues is less prevalent than in Australia.
Duncan Paterson, director of investor practice at IGCC, 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.”
The report underscores the importance of policy stability for advancing climate-aligned investment.
While the legislative framework remains in place, recent political changes have introduced some uncertainty.
Two-thirds of surveyed investors reported participating in climate policy advocacy in the past year, reflecting a growing recognition of the financial sector’s influence on policy development.
As international standards evolve and stakeholder expectations increase, the report calls for closer alignment between climate ambitions and actual investment practices.
With improved data, regulatory clarity, and policy support, New Zealand’s investment sector could play a significant role in funding a low-emissions economy.
