The C Words: Climate Change

Lily Richards

05 March, 2024

2 min read

8 ways investing can generate better outcomes for the environment

There’s probably no hotter (pun intended) topic than this and many investment managers have switched on to people’s panic by offering different levels of (mostly) carbon-avoidant solutions. At Pathfinder we care about people and the planet just as much as profit. We see the big picture and the interconnected nature of our world. We know that every decision has an impact and is an opportunity to help humans and nature coexist in a healthy, supportive, diverse and regenerative way.

Here are 8 ways our investing supports the environment and the people and animals who rely on it.

1. We don’t invest in the top banks that lend money to the fossil fuel industry, based on data from the 2023 Banking on Climate Chaos report.

2. We don't invest in factory farming or livestock export.

3. We offer a Green Bond Fund that's dedicated to funding projects targeting climate positive environmental solutions (think renewable energy & clean rail). Our KiwiSaver invests in this Fund, so if you're a Pathfinder KiwiSaver Plan member, you're investing in green bonds.

4. All three of our KiwiSaver funds have less than half the carbon footprint of the benchmark.

5. We invest in women through Orange Bonds, which are used to fund women-owned and women-led enterprises. There's a positive correlation between higher female education/empowerment and positive climate outcomes. For example, a growing body of evidence demonstrates that female political leaders are especially effective in creating environmental protection measures and more likely to ratify climate protective laws and treaties. We invest in companies that have 6.7% more women managers, compared to the MSCI All County World Index, and only 11.2% of companies the Index tracks report on gender pay gap data, whereas 31.1% of the companies we invest in report this gender equity data. Read our Sustainability Report on Gender and Investing for more.

6. Our 2040 target is to only invest in companies that are committed to preventing the worst impacts of climate change. We do this by increasing our investment in companies committed to science-based target initiatives by 7% every year. Read our Sustainability Report on Climate Change and Investing in Better for more.

7. To address sanitary access to water amidst a global water crisis, our Global Water Fund invests in companies that produce things like water filtration systems, pumps and pipelines to positively contribute to clean water access and sustainable water use.

8. We invest in private companies that achieve good environmental outcomes; think biodegradable bandages, sustainable metal recovery to reduce mining and zero-emission solar farms.

When it comes to investing, we firmly believe you can do well and do good.

Lily Richards

With over 10 years of marketing experience in a variety of industries (such as publishing, creative arts and technology), Lily brings an outsider's eye to the financial industries. Overseeing PR, advertising, communications and brand, Lily is passionate about helping Kiwis harness the power of ethical investing to grow wealth and well-being.