A coalition of businesses and organisations want New Zealand investment managers to increase their backing for net zero carbon projects.
Photo: 123RF
The United Nations Climate Change Conference in Glasgow has seen hundreds of billions of dollars pledged for a wide range of climate change projects.
Convenor of the net zero coalition Barry Coates of Mindful Money said New Zealand investors were lagging behind global counterparts.
Globally, net zero pledges total over $US8.5 trillion funds under management for asset owners and $US43 trillion for asset managers, Coates said, referring to a recent survey.
Five local fund managers had so far pledged $40 billion to net zero investments, while Crown enterprises, including the ACC and Super Fund, had pledged $110b.
Coates said a number of New Zealand fund managers were also planning to invest, but there was a long way to go with hundreds of billions of investment dollars available to be redirected.
"Redirecting this money from sunset industries and investing in sustainable solutions is an extremely powerful tool in our global efforts to reverse climate change," he said.
The survey indicates only half of the respondents were currently measuring the carbon emissions within their portfolios, while one-fifth had begun preparing emissions reductions plans.
Coates said the aim was to get the finance sector not just to make credible net zero commitments but also take action to meet them.
Meanwhile, trans-Tasman accountants body CPA is urging New Zealand to get "on board" with the newly formed International Sustainability Standards Board (ISSB) which will treat sustainability reporting on the same basis of financial reporting.
"Historically, there's been a spaghetti bowl of global sustainability initiatives, frameworks and institutions," said CPA Australia New Zealand Country Head, Rick Jones.
"This has slowed down progress on sustainability reporting."
He said the ISSB would become a focal point for investors, businesses, governments and regulators a global institution to rally around, setting international standards on sustainability reporting, which local regulators needed to incorporate into company reporting standards.
"If our country doesn't get on board, the reputation of our financial markets may be damaged, companies may find their share price impacted and capital raising in international markets could become harder," Jones said.
