The rise of the KiwiSaver warriors
Changing the planet with New Zealand’s most powerful savings scheme
More than three million New Zealanders now have an enormous collective NZ$76 billion wealth invested with KiwiSaver.
With a healthy average balance of just over $20,000 per member, Kiwis have started to take notice not only of their money going up, but how their investments affect the planet.
While still keen to maximise their savings for their rst home or retirement, or provide for their family, a growing number are also staging a silent revolution.
SHOCKING DISCOVERIES
For many global investors, the horror of realising their funds have been linked to environmental disasters, human traf cking, munitions, and slavery has juggernauted a nancial reckoning and given way to a rise of ‘conscious investing’ – the act of putting your money where your heart (and mind) is.
Kiwi eco-warrior Kate Hall, well known for documenting her life of sustainable living and ethical fashion advocacy via her Ethically Kate blog, found success in encouraging others to ditch single-use plastics and recycle more.
She says her most signi cant ‘a-ha moment’ came when she realised she could use her own KiwiSaver to wield environmental in uence.
“It’s embarrassing to admit, but it wasn’t until I learnt more about nances when getting a mortgage that I actually understood I had a choice around where to put my KiwiSaver savings,” Hall says.
Hall says she realised that while things like bamboo toothbrushes and keep cups did their bit for the environment, a much bigger impact could be made via the thousands of dollars she was saving and investing.
“That was a good moment for myself, for others, and for the planet,” she says.
THE POWER OF MEANINGFUL CHANGE
New Zealand government policy now requires big business to declare climate impact.
But many Kiwis aren’t waiting for the government to step in.
A stream of conscientious KiwiSaver members are also transferring their balances to scheme providers like Path nder – New Zealand’s carbon zero provider – who align with their values.
For Sue Abel, a retired Auckland academic and founding member of NZ’s The Values Party, a life dedicated to
ghting issues of social justice meant it was a “no-brainer.”
“I have been concerned for many years that big companies have been able to follow practices that are harmful to the wider society, including environmental impacts,” Ms Abel says, adding that gender and race discrimination inside companies was of equal concern.
“So when I discovered that ethical investing takes into account conditions of labour involved in the whole process of production as well as diversity in the company, it was an absolute no-brainer to invest in these companies.”
And the good news is that doing good for the planet doesn’t have to mean sacri cing your balance.
All three of Path nders rst
“It wasn’t until I learnt more about finances when getting a mortgage that I actually understood I had a choice around where to put my KiwiSaver savings.”
KiwiSaver Funds were top performers in the past 12 months, with its signature Growth fund returning 31.8 per cent for the year to the end of April 2021.
MAKING SENSE OF CLIMATE INVESTMENT
How does an ethically-focused KiwiSaver provider ensure the trustworthiness of companies?
In Path nder’s case, Environmental Social Governance (ESG) analyst Kate Brownsey is one of a team investigating every investment opportunity through a broad sustainability lens, including carbon emissions and labour practices right through to how much a company’s CEO earns compared to the average paid worker.
Technology also plays a large part. An automated tool called ISS provides ESG scores – an ethical report card of sorts – and other reports about how they fare on a sustainable level.
Brownsey says it is important to reward good corporate behaviour, by identifying companies hitting sustainable development goals in areas like clean water and sanitation, affordable and clean energy, and climate action.
“It’s essential we ensure that as part of the lowcarbon transition we are simultaneously working towards rectifying injustices present throughout our society
by investing in impactful companies.”
KiwiSaver providers are also able to have a say in big business.
Path nder uses and shares updates on its shareholder voting rights to in uence companies on important ESG issues like sustainability, board diversity and, crucially, to veto detrimental company decisions.
LEARN WHERE YOUR FUNDS ARE INVESTED
For Kiwis who don’t know where their money is invested (and in what,) a good rst step is to use an ethical calculator which can be found on Path nder’s website or at Mindful Money. These will illustrate the degree to which you’re exposed to sectors you may nd objectionable, such as tobacco, gambling, adult entertainment and fossil fuels.
Switching providers takes an average of two minutes and can be done fully online. All you will need is your current passport in front of you to ll in a quick online form.
A new provider will contact your previous provider for you.
MAKING A SOUND DECISION
Path nder CEO ohn Berry says increasing numbers of people want to be comfortable with where their money is invested.
“With climate change and our highly connected world, more people see the link between nancial decisions and ‘real world’ impacts.
“This shift is the next step for consumers who already care about their spending decisions.”
The overall philosophy that drives Pathinder’s ethos is simple, says Berry.
“I believe the way we invest can encourage and enable positive change.
“This is in tune with what our investors want and what the world needs right now.”
ant your inve tment to e ethical Switch to a Pathfinder KiwiSaver plan today or find out more at path.co.nz.