By the end of 2021, 49% (NZD 179 billion, or around USD 101 billion) of New Zealand assets were being managed through responsible investment strategies, an increase from 43% in 2020, according to the Responsible Investment Association Australasia’s (RIAA) 2022 benchmark report.
The review of the investment practices of 52 New Zealand-based financial institutions noted that 19 investment managers and asset owners out of the 52 assessed are “demonstrating leading responsible investment practice”.
Further, sustainability-themed investment grew by NZD 18 billion compared to 2020, reaching NZD 40 billion, with 49% of sustainability-themed AUM targeted climate-related themes.
Negative screening is the preferred approach to responsible investing, the report noted, followed by ESG integration and corporate engagement and shareholder action.
Impact investment also increased from NZD 5 billion to NZD 8 billion in a 12-month period, predominantly composed of green, climate, social and impact bonds.
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