Insights
Responsible Investment Certification
Independent verification of Pathfinder's ethical investment process
You might have seen the Responsible Investment Certified badge on our website or read the acronym 'RIAA'. In this blog you can learn more about which Pathfinder Funds are Responsible Investment Certified and how we're working with the Responsible Investment Association Australasia (RIAA) to independently certify our investment process.
What is the Responsible Investment Certification scheme?
The Responsible Investment Association Australasia (RIAA) runs the Responsible Investment Certification Program (1), which is a scheme that independently verifies whether an investment product genuinely does what it claims when it comes to sustainable, ethical or responsible investing. RIAA is a not-for-profit organisation, not a regulator, but its certification program is the most widely used and longest-running scheme (est. 2005) of its kind in Australia and New Zealand.
When a fund carries RIAA’s Responsible Investment Certification Symbol, it means the fund's investment process (the way it actually selects and manages holdings based on environmental, social, governance or sustainability considerations) has been reviewed by RIAA and confirmed to meet its Responsible Investment Standard. It's not a badge a fund manager can simply pay for and display. It requires a formal application, an independent assessment, and ongoing monitoring for as long as the certification is held.
How is the Certification issued?
Certification isn't a single review - it's a process. One of the reasons it carries weight is that it involves more than one independent check.
| Stage | Steps taken |
|---|---|
| Application | The fund manager applies, and the product (each fund) is assessed against the Responsible Investment Standard's eight criteria for product certification. |
| Initial review |
RIAA's certification team reviews the application and makes a recommendation. |
| Assessment Panel | Two separate committees of independent experts, with no connection to the product being assessed, examine the application and make the final determination on whether the Standard is met. |
| Independent verification |
A qualified third party (RIAA's Independent Verification Panel) separately verifies the data submitted in the application. |
| Ongoing monitoring | Six to twelve months after certification, an independent verifier tests the product again for conformity. RIAA and the Independent Verification Panel also conduct spot checks throughout the certification term. |
| Recertification | Certification generally runs for two years before being reassessed. Material changes to the fund can trigger an earlier recertification review. |
As part of the assessment, RIAA checks the fund's actual portfolio holdings against research databases to confirm there's no direct exposure to the kinds of industries the fund manager claims to exclude. It also looks at whether the fund manager is an active steward of the companies it holds, including engagement and voting activity, and requires certified products to publicly disclose their full portfolio holdings and stewardship activity; a level of transparency RIAA describes as above what's typical across the market.
In 2024, RIAA added a further layer to the program: three Sustainability Classifications, Responsible, Sustainable, and Sustainable Plus, which differentiate certified funds by the depth of their approach, rather than treating certification as a single pass or fail outcome (2).
What does it mean for a product to be Certified?
In practical terms, Responsible Investment Certification tells an investor three thing about a specific fund:
- Its responsible investment process is formal (eg. a documented policy and process) and consistent
- Its holdings have been independently reviewed against its own stated exclusions, and
- It meets a required standard of disclosure, including making its full portfolio holdings publicly available.
Funds certified at the Sustainable Plus level (RIAA's highest classification) go a step further as they are required to have embedded, measurable sustainability objectives that are reported on, not just a general disclosure of holdings and process.
It is also important to note what the Responsible Investment Certification is not;
- It does not signal that every company in the certified fund scores 100% on every sustainability or ESG measure
- It isn't independent evidence that a fund manager’s ethical standards are especially high or rigorous. The Responsible Investment Certification does validate the rigour of our process, and how consistently we apply the thresholds we've set for ourselves in our Ethical Investment Policy. (Whether those thresholds are the ‘right ones’ is a separate question, one we'd encourage every investor to look into and form their own view on).
- It also isn't a guarantee of investment performance. RIAA certifies processes and disclosures, not financial returns.
Pathfinder's Responsible Investment Certifications
Several of our funds are RIAA certified, including the Global Responsibility Fund, the Global Water Fund, and the Pathfinder KiwiSaver Growth, Balanced and Conservative Funds. In 2026, the Global Responsibility Fund and Global Water were recertified and achieved RIAA’s highest classification: Sustainable Plus. While not every Pathfinder fund carries RIAA certification, this is simply a matter of cost and timing rather than a gap in ethical standards. Our Ethical Investment Policy applies to every fund we manage in the same manner regardless of certification status. So, the same exclusions, thresholds and process apply equally to all funds.
We've also separately been recognised by RIAA as a Responsible Investment Leader for three years running, placing Pathfinder in the top 20% of responsible investment managers RIAA assesses. Rather than recognising a single fund, this reflects RIAA's assessment of Pathfinder as a manager overall, including our stewardship practices and transparency.
Sources & further reading
Disclaimer
The RI Certification Symbol is issued by Responsible Investment Association Australasia (RIAA) ACN (641 046 666), AFSL (554110) and signifies that a product or service offers an investment style that takes into account environmental, social, governance or ethical considerations. The Symbol also signifies that the Pathfinder KiwiSaver Plan Growth, Balanced and Conservative Funds adhere to the operational and disclosure practices required under the Responsible Investment Certification Program for the category of Product. The Pathfinder KiwiSaver Plan Growth, Balanced and Conservative Funds are assessed against RIAA’s Responsible Investment Standard. The Certification Symbol is a Trademark of RIAA. For detailed information about RIAA, the Symbol and the Pathfinder KiwiSaver Plan Growth, Balanced and Conservative Funds methodology, performance, stock holdings, remuneration and details about other responsible investment products certified by RIAA, refer to responsibleinvestment.org and our Financial Services Guide (1).
(1) The Responsible Investment Certification Program provides general advice only and does not take into account any person’s objectives, financial situation, or needs. Neither the Certification Symbol nor RIAA recommends to any person that any financial product is a suitable investment or that returns are guaranteed. Because of this, you should consider your own objectives, financial situation and if the advice relates to the acquisition, or possible acquisition, of a particular financial product. Certifications are current for 24 months and subject to change at any time.