Insights
Pathfinder's position on Meta
We don't invest in it, but we do use it; discuss....
We are aware of the tension in this scenario: on the one hand we're saying Meta isn't fit to invest in and on the other, it appears we're condoning the platform by using it selectively, to reach many customers, investors and “digital-native” readers who are ethically conscious.
Here's why we don't see these positions as unreasonably contradictory:
- With Meta's apps (Facebook,Instagram, Messenger and WhatsApp) having roughly 3.6 billion active people daily [1] we need to use Meta to grow our investor base.
When our investor base grows this has a meaningful impact on the flow of capital away from harmful areas and into helpful ones. In contrast to this, we view the relatively small transaction fee paid to Meta for our advertising, as comparatively minor.
- Participation in society often requires us to engage with products that may not always align with our values (non-renewable energy at peak times, smartphones despite mining practices, we don’t get to choose if the next bus that shows up is electric rather than diesel). However, using Meta to communicate isn't the same as endorsing every aspect of its business. On the contrary, we've been vocal about our criticism of their addictive product, poor governance and breaches of privacy.
- We're open about our investment decisions not occurring in a vacuum. We aren't operating in a perfect world, and this means we must, at times compromise, starting with 'better’ instead of holding out for the elusive 'ideal’.
- End goal? The bigger we get, the greater our influence, the more we're able to meaningfully impact society for good. That's our unique opportunity – as investors, not as advertisers. This position reflects us prioritising the areas where we can have the greatest impact.
In summary
We recognise there is a tension between excluding certain companies from our investment universe and using some of their services. Our investment decisions reflect our Ethical Investment Policy, which describes how we choose to allocate clients' long-term capital. Our communications decisions reflect our need to engage with New Zealanders where they spend their time. We do not view use of a platform as an endorsement of every aspect of its business model. However, we acknowledge the concerns that exist and periodically consider whether there are effective alternatives that better align with our values (currently, there aren't).
Right now we find this compromise acceptable: working to increase the amount of ethically invested capital while remaining transparent about any trade-offs involved.
Sources & further reading:
Date written: October 2026 | Drafted with research support from Co Pilot.