Booster leads the way in responsible investing

17 September 2020

Booster has been named as a leader in responsible investment in this year's Responsible Investment Benchmark Report, issued by the RIAA.

Their assessment is based on a rounded approach to investing responsibly, which includes avoiding harm, accounting for ESG factors in investment decisions and engagement with businesses. This is something that Booster has aimed for with our approach to responsible investing, and it is pleasing to have this work recognised by the RIAA.

The Responsible Investment Benchmark Report New Zealand 2020 (undertaken in collaboration with KPMG), shows that the vast majority (94%) of New Zealand investors now have a commitment to responsible or ethical investing. However, just over half (52%) can demonstrate a leading approach that is contributing to real world outcomes.

The study reveals the responsible investment market in New Zealand was worth $153.5 billion in 2019. This represents 52% of the estimated $296 billion of total professionally managed assets under management in New Zealand.

Assets V10 Front Quote Marks

Responsible investors in New Zealand have shifted their focus from screening out harmful industries such as tobacco and armaments, to considering broader environmental, social and corporate governance (ESG) factors when investing. Impact investing activity – which aims to deliver positive outcomes for society and the environment – is also on a steep rise, growing over 13 times from $358 million in 2018 to $4.74 billion in 2019.

Assets V10 Quote Marks

The growth in responsible investment domestically reflects offshore trends, with global responsible investment assets reaching $US30.7 trillion at the start of 2018 (a 43% increase from 2016), according to data from the Global Sustainable Investment Alliance. It also reflects the preferences of consumers, as a RIAA and Mindful Money study released last year found the overwhelming majority of New Zealanders (8 in 10) expect their KiwiSaver or other investments to be invested responsibly and ethically.

For the first time, the financial performance of New Zealand's responsible investment funds has also been reported. Even though it draws from a small sample size, it can be seen that responsible investment multi-sector growth funds outperformed mainstream indices over some time horizons.

Read the full report: Responsible Investment Benchmark Report New Zealand 2020