Demanding to make a difference: Kiwi savers are calling for more ethical options

More and more Kiwis are insisting that their funds shape the world for the better.  

Mindful Money’s latest Voices of Aotearoa report on consumer demand for ethical investment shows New Zealanders are taking a hard look at where their money is invested – and they’re not afraid to make changes. 

Is this what you signed up for?  

KiwiSaver funds invest our savings on our behalf into companies around the world. We all have the choice to direct these investments towards companies that align with our values, but here’s the thing: many KiwiSaver and investment fund providers are still putting a significant amount of our money into companies that profit from environmental destruction, human rights abuses, weapons production and more.  

It’s not exactly what most of us had in mind when we signed up, right? 

What Kiwi investors are really after 

In their sixth annual survey of the New Zealand public, Mindful Money and Responsible Investment Association Australasia asked a representative sample of New Zealanders from all walks of life about their investment preferences. The findings are eye-opening: 

• 77% of New Zealanders now expect their investments to be managed ethically and responsibly. 
• Most Kiwis are ready to switch their fund if they discover their current provider is investing in companies that clash with their values.  

When it comes to what Kiwis want to avoid, the numbers speak volumes: 

• 92% want to steer clear of companies involved in human rights violations.
• 91% say no to companies that abuse labour rights.
• 89% don't want their money supporting environmental damage. 

But it’s more than that... 

We’re not just looking to avoid harm – most of us are also eager to invest our money into companies and industries that make a positive difference: 

• 74% would consider investing in schemes that support companies creating positive benefits for society and the environment.
• Of these, 54% would do so if the financial returns matched traditional investments, and 20% would accept lower returns for the sake of impact. 

This desire for positive change spans environmental and social issues, from healthcare to sustainable water management and renewable energy. 

Concerns about greenwashing  

Unfortunately, as demand for ethical investments grows, so does the risk of deception. More than half of those surveyed (51%) are concerned about ‘greenwashing’ – where companies or funds make misleading claims about their ethical practices. This lack of trust in ethical claims should be a wake-up call for greater transparency and accountability in the investment world. 

The call for transparency  

In this landscape of ethical complexity, information is crucial: 

• 67% of New Zealanders want to know exactly which companies are in their investment fund. This is a vital step towards holding fund managers accountable.
• Only 30% report receiving regular information on ethical investment from their providers. There’s clearly room for improvement here. 

The message from this report is clear: Kiwis are no longer willing to simply accept assurances from their fund provider that their investments are ethical. People are demanding change, accountability and the power to align their investments with their values. 

If this sounds like you, there are some key steps you can take. 

Here’s what you can do 

Reflect on your personal ethics 

Start by considering your core values and ethical priorities when making investment decisions. What do you want your money to support? Which industries or types of businesses would you prefer to avoid investing in? 

Make a list of your ethical concerns. Some common areas are environmental impact, human rights violations, weapons production, animal cruelty, fossil fuel companies causing climate change, alcohol production and sales, pornography, gambling and tobacco. 

To clarify your thoughts and how you feel about these values, it helps to discuss ethical investing with family or friends. 

Check where your money is currently invested 

• Mindful Money’s Fund Checker can help you see where it’s really going.
• Review your KiwiSaver, managed funds and other investments. 

Talk to your fund provider 

• Your voice is powerful! If you don’t like what you’re invested in, contact your KiwiSaver provider or financial adviser to share your concerns about specific companies or industries in their holdings.
• Clearly communicate what issues you want to support or avoid in your investments. 

Remember, the more we engage with our fund providers, the more likely we are to see change. 

If your fund provider does not give you assurances that they will make real change to meet your values, you may want to switch to a more ethical fund. Most times it’s free, quick and easy to switch. 

Research your ethical options 

• Explore funds that align with your values, such as those that meet Mindful Money’s mindful fund criteria.
• Among the funds of your preferred type (conservative, balanced, growth, etc), compare the fees, services and past performance for different ethical funds. (Don’t know your type? Try this.) 

Take action and make the switch 

• Choose a fund that aligns with your values.
• Make the switch into the KiwiSaver fund (or the non-KiwiSaver managed fund) you’ve selected. You’ll need your driver’s licence to complete the application form, but everything else is taken care of by Inland Revenue, which administers KiwiSaver.
• For more on switching, there’s this. 

Remember, every dollar you invest is a vote for the kind of world you want. As the Voices of Aotearoa report shows, more and more Kiwis are demanding and expecting a better future.