The Guardians reports on our performance in line with responsible investment principles; environmental, social and governance (ESG) good practice; and our progress towards achieving positive sustainability outcomes from our investments.

The Guardians established a multifaceted climate change investment strategy in 2016. Designed to address climate change investment risks and opportunities over the long term, it remains a key element of our evolving sustainable finance approach.

In 2022, we embedded sustainable finance measures as part of our Statement of Intent and Statement of Performance in our Annual Report. These measures include medium-term carbon reduction targets, and our commitment to achieving net zero carbon emissions by 2050. Under the Net Zero Asset Owners Commitment, we have pledged to decarbonise the Fund by investing in climate solutions, setting interim targets and undertaking advocacy and engagement in line with net zero goals.

We are continuing to establish goals, targets and benchmarks to support regular measurement of our sustainable finance performance and progress. 

Global benchmarking

Principles for Responsible Investment (PRI) assessments

We benchmark our sustainable investment practice through annual United Nations-supported Principles for Responsible Investment (PRI) assessments. The PRI is the internationally accepted benchmark for how institutional investors should manage environmental, social and governance (ESG) issues. The Fund scored well in its latest PRI Assessment Report. The 2023 assessment, which looked at our approach to responsible investment across the portfolio, rated the Fund:

• Five stars (93%) for policy, governance and strategy
• Four stars (84%) for listed equity, passive
• Four stars (84%) for listed equity, active

The PRI assessment is a key measure of the Guardians’ performance on responsible investment, both internally and externally. Achieving a high rating for strategy and governance in the PRI assessment is the measure included in the Guardians’ Statement of Intent.

Responsible Asset Allocator Initiative

The NZ Super Fund has been named a world leader in a ranking of the responsible investing practices adopted by the world's top sovereign wealth funds and government pension funds.

The study, undertaken by the Responsible Asset Allocator Initiative at New America in partnership with Fletcher School at Tufts University, rated 251 asset allocators from 63 countries with assets of $26 trillion to identify the institutions attaining the global standard in responsible investing. The study provides a benchmark of peer excellence for responsible investing among the broader investment community.

The NZ Super Fund is listed on the prestigious 'Leaders List' of the 30 highest scoring asset allocators, achieving a perfect 100% score against the study's detailed criteria.

Responsible Investment Association Australasia

The NZ Super Fund participates in the Responsible Investment Association Australasia (RIAA) benchmark survey, in which we aim to demonstrate our strong governance systems, policies and processes, whilst inviting stakeholders to hold us to account for our responsible investment performance.