Impact Stories
Contact Energy
“Contact stand out for their pragmatic approach and transparency” Alex Safran, Investment ESG Analyst.
About this company
Contact Energy Limited (Contact) is one of Aotearoa New Zealand’s larger energy companies, providing electricity, gas, broadband, and mobile services to over 600,000 customer connections nationwide. They are a globally recognised generator and retailer of energy because of their strong emphasis on renewables and sustainability.
Contact’s electricity generation portfolio includes geothermal, hydro, and gas-fired stations, assets include the new Tauhara geothermal station in Taupō, as well as the Te Mihi and Wairakei geothermal plants. The company also continues to innovate, with investments in large-scale solar and battery projects such as the Kōwhai Park solar farm in Christchurch and the 100 MW grid-connected battery in Auckland.
Driven by strong values and tikanga, Contact takes their sustainability seriously. They have set a clear path to achieve net-zero carbon emissions by 2035; strong positive community partnerships that emphasis being a good neighbour; and proactive engagement in actions to care for natural resources and indigenous areas land use.
Awards
Contact has gained global recognition for their sustainability. In 2022 they were added to the prestigious Dow Jones Sustainability Index Asia-Pacific* and in 2023, Contact topped all New Zealand companies on the index with a Corporate Sustainability Assessment score of 74 (threshold was 68). In 2023 they won the Deloitte Top 200 Sustainability Leadership Award and the NZ Energy Excellence Awards – Energy Retailer of the Year.
Why Pathfinder invested
Pathfinder invested in Contact Energy because of their clear, long-term commitment to sustainability and decarbonisation. They are not there yet, which is why they flag on our Exceptions Register for electricity generation from fossil fuels. But with strategic targets to achieve net-zero carbon emissions across their operations by 2035, Contact stands out as a leader in New Zealand’s energy transition, and we support their strong commitment to change.
The company combines robust financial performance with climate-forward infrastructure investment, such as the development of new solar and wind farms and energy storage. Contact’s transparent sustainability reporting, strong governance, and active community engagement further align with Pathfinder’s principles for ethical and impactful investing.
“Contact stand out for their pragmatic approach and transparency” says Alex Safran, Investment ESG Analyst. “They are honest about the fact that they can get to 97-98% renewable, but that reaching the last 2% will be challenging. Our investment team are optimistic that they have the means to meet their net zero target and help Aotearoa's decarbonisation efforts.”
We see Contact not just as a utility provider, but as a company actively shaping the future of clean energy in Aotearoa.
What positive impact this company is making
Commitment to a renewable energy future: Contact is playing a vital role in Aotearoa’s energy transition with a pathway to ~97% renewable energy by 2027. While 93% of its electricity came from renewable sources in FY23, this figure dipped in 2024 due to unprecedented climate conditions. Contact’s strength lies in their significant investment in geothermal, solar and battery technology to enable a more resilient, low-emissions grid long-term.
Community and stakeholders: The company is deeply engaged in the communities where it operates, supporting local iwi through training and employment opportunities, contributing to native planting and environmental restoration projects, and prioritising human rights and inclusion across its workforce and supply chain.
They also provide customer offerings like off-peak pricing, plans and tips to help manage energy usage and encourage more sustainable energy choices – this empowers their customers to reduce their own carbon footprints while saving on costs.
Sources & further reading:
ESG Report | Environment | Contact Energy
NZ Electricity, gas and broadband provider | Contact Energy
DJSI Index Family | S&P Global
Learn more about Contact and our exceptions register here.
* The Dow Jones Sustainability Indices (DJSI) are a family of best-in-class benchmarks for investors who have recognized that sustainable business practices are critical to generating long-term shareholder value and who wish to reflect their sustainability convictions in their investment portfolios.