More investors want their money to have a positive impact, and not just avoid causing harm, the team behind a survey on ethical investment says. Photo: 123RF
New Zealanders are standing by their ethical investments in the face of international headwinds and "culture wars", a new survey has found.
Ethical or ESG investment has come in for harsh criticism from US president Donald Trump and Republican leaders.
The new survey Voices of Aotearoa: Demand for Ethical Investment in New Zealand 2025 report shows 75 percent of New Zealanders said they still want their KiwiSaver and managed funds investments to be invested ethically and responsibly.
The report was commissioned by Mindful Money and the Responsible Investment Association Australasia (RIAA).
Mindful Money founder Barry Coates said the survey matched up with how he's seeing people invest their savings.
"There's been criticism, particularly from Republican controlled states and from the White House - but that's primarily been from a culture wars perspective rather than from an investment perspective," Coates said.
"It's good from the survey to see that people are still very strong in wanting their investment to be managed ethically."
He said in the past two years there had been an increase in New Zealand investors who are familiar with ethical and responsible investing.
Consumers wanted to avoid sectors incurring human rights violations, labour rights abuses, environmental damage, weapons, gambling and tobacco.
Investors did raise some concerns about greenwashing, with 54 percent of respondents more likely to choose funds with independent certification.
The survey showed investors are shifting their focus from merely avoiding harm to actively creating a positive impact.
"They not only want to avoid harm, but they are also seeking investments that deliver positive outcomes for society and the environment," Coates said.
Older investors were the most concerned about their level of returns as they approach the day when they will access their money.
Baby Boomers were more reluctant to switch their investments due to the perceived risk of switching during a period of financial uncertainty.
The most frequently cited reason by New Zealanders for their choice of KiwiSaver fund was still because "they are my main bank."
This was particularly the choice for younger generations, and those with a low level of KiwiSaver balances.
There was more evidence of people using financial advisors and financial planners to guide their KiwiSaver choices
The report surveyed 1000 people aged over 18 years.
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