About this report

The Responsible Investment Benchmark Report Aotearoa New Zealand 2024, published by the Responsible Investment Association Australasia (RIAA), examines the size, growth, and performance of New Zealand’s responsible investment (RI) market for the 2023 calendar year. Using data from 70 investment managers, it evaluates their ESG integration, stewardship, and disclosure practices. The report benchmarks the responsible investment assets under management (AUM) of both domestic and international firms operating in New Zealand, comparing results against the broader financial market. EY contributed data analysis, while Lonergan Research conducted data collection.

The report also assesses 70 investment managers through RIAA’s Responsible Investment Scorecard, which measures ESG coverage, transparency, stewardship, and outcome reporting. Twenty-four organisations qualified as Responsible Investment Leaders or Responsible Investors, representing a significant share of national managed funds and demonstrating the maturity of ESG practice across the sector.

About RIAA

Established in 2000, RIAA promotes responsible investment and a sustainable financial system across Australia and New Zealand. It represents more than 500 members, manages over 340 certified responsible investment products, and provides leadership through initiatives such as the RI Academy and the Sustainability Classifications Initiative launched in 2024.

About EY

EY supported data analysis and insights for the report but is not responsible for its completeness or accuracy beyond the terms of engagement with RIAA.

Responsible investing in 2023

Globally, 2023 saw advances in sustainability regulation and disclosure frameworks. The International Sustainability Standards Board (ISSB) released its inaugural sustainability standards, while the Taskforce on Nature-related Financial Disclosures (TNFD) published its final recommendations. The European Union expanded its taxonomy, and the UK and Japan launched updated green finance strategies. Concerns over greenwashing and “greenhushing” influenced investor confidence across several markets.

Key developments in New Zealand

Aotearoa New Zealand remained a leader in sustainable finance with the introduction of mandatory climate-related disclosure requirements and the adoption of the Stewardship Code Aotearoa New Zealand, which now covers 60% of national AUM. The report also notes climate finance collaboration with Australia, evolving regulatory alignment with ISSB standards, and potential policy shifts following the 2024 general election.

The responsible investment market in 2023

Responsible investment AUM in New Zealand increased 13% to NZ$207 billion, representing 56% of total managed funds. Transparency improved significantly, with 77% of managers disclosing full fund holdings and 90% publishing ESG policies.

Responsible investment leaders and responsible investors

Seventeen organisations achieved Responsible Investment Leader status, while seven were recognised as Responsible Investors, based on RIAA’s four-pillar Scorecard. Stewardship, ESG integration, and the allocation of capital toward sustainability outcomes were key differentiators between leadership tiers.

RIAA certification and the performance of RI

RIAA certified 83 new investment products in 2023 across diverse asset classes. International equity funds accounted for 29% of new certifications, while multi-asset products comprised 42%. Certified funds outperformed benchmarks over five- and ten-year periods, demonstrating that responsible investments deliver competitive long-term returns.

Responsible investment approaches

All seven RI approaches recorded growth. ESG integration and stewardship remained dominant, while thematic and impact investing saw the sharpest expansion. Impact investing increased to NZ$5 billion, focusing on clean energy, climate mitigation, and affordable housing.

Market drivers and future trends

Recognition that ESG factors influence financial performance was the strongest driver of RI growth in 2023. Regulatory developments and investor demand also contributed, while concern about greenwashing emerged as the primary barrier.

The report concludes that responsible investment is now mainstream in New Zealand, supported by robust governance, transparency, and growing alignment with global sustainability standards.