The Responsible Investment Association Australasia released a new benchmark report on responsible investment in New Zealand this week, which was researched in collaboration with KPMG.
The report is intended to provide an overview of the current state of the responsible investment industry in New Zealand. It shows that the market for responsible investments in Aotearoa New Zealand grew to $142 billion in 2020, with responsible investment assets growing at double the rate of the wider market. As a result, the proportion of professionally managed funds purporting to engage in responsible investing has grown to 43% in 2020.
This trend suggests the quality of practice in New Zealand is pulling ahead of the Australian marketplace, where only a quarter of investment managers are engaging in leading practice responsible investment.
The trend is being fuelled by changing consumer expectations, increased regulation, strong financial performance and the rising materiality of different social and environmental issues – from climate change to racial inequity.
Responsible Investment Benchmark Report Aotearoa New Zealand 2021