A new nationwide analysis of KiwiSaver investments has revealed a growing divide between the ethical values many New Zealanders say they want reflected in their retirement savings and where billions of dollars are actually being invested.
The report, released by independent charity Mindful Money, examined the portfolio holdings of 417 KiwiSaver funds covering $143 billion in retirement savings to the end of March 2026. It found New Zealanders’ investments are increasingly split between companies driving the transition to renewable energy and others associated with fossil fuel expansion, human rights concerns, environmental damage and nuclear weapons production.
Mindful Money says the findings highlight the importance of looking beyond marketing claims made by KiwiSaver providers and instead examining where members’ money is actually invested.
Co-chief executive Barry Coates says many fund managers promote themselves as responsible or ethical investors, but the data tells a far more complex story.
The organisation says New Zealanders have become increasingly sceptical of Environmental, Social and Governance (ESG) claims, with the report designed to provide independent transparency over where retirement savings are ultimately invested.
The report also highlights significant investment in businesses considered to be delivering positive outcomes for New Zealand.
Five of the six largest KiwiSaver investments are in New Zealand organisations supporting renewable energy, healthcare and public infrastructure, including Contact Energy, Meridian Energy, Mercury Energy, Kāinga Ora and Fisher & Paykel Healthcare.
Mindful Money says this demonstrates KiwiSaver funds have the ability to direct substantial capital towards companies supporting climate resilience, affordable housing and improved healthcare.
The charity believes this represents an encouraging shift after years in which responsible investment received comparatively little attention.
Billions remain invested in controversial industries
Despite those positive developments, the report found $11.1 billion of KiwiSaver money—around 7.8 percent of all retirement savings—is invested in companies linked to activities many New Zealanders consistently say they want to avoid.
The largest category remains fossil fuel production, accounting for $5.18 billion, or 3.62 percent of all KiwiSaver investments.
Mindful Money says investments in major international oil, gas and coal producers increased by around 30 percent over the previous six months. Companies identified include BHP, Shell, ConocoPhillips, Santos and Woodside.
The report notes that while recent international conflicts have driven higher oil and gas prices, the long-term global energy transition continues to favour renewable generation.
Investment in companies associated with human rights concerns totalled $3.76 billion, with increased exposure to multinational mining company Rio Tinto and scientific equipment manufacturer Thermo Fisher Scientific among the major contributors identified in the report.
Meanwhile, investments linked to environmental harm reached $1.78 billion, including agrichemical companies associated with highly hazardous chemicals and PFAS, commonly referred to as “forever chemicals.”
The report also identified $1.52 billion invested in companies associated with animal welfare concerns, while $612 million remains invested in companies involved in nuclear weapons production, representing a 15 percent increase over six months.
Mindful Money says the increase in nuclear weapons investment is particularly significant given New Zealand’s long-standing nuclear-free identity and widespread public opposition to nuclear weapons.
Traditional ethical concerns including tobacco, gambling, alcohol and pornography represented the smallest category at $444 million, reflecting the fact many KiwiSaver providers have already adopted long-standing exclusion policies in those areas.
Māori values and responsible investment
The findings may resonate strongly with many Māori investors, where concepts such as kaitiakitanga, environmental stewardship and intergenerational wellbeing increasingly influence investment decisions.
Responsible investment has become a growing focus across Māori trusts, incorporations and iwi investment entities, many of which already incorporate environmental, cultural and social outcomes alongside financial returns.
The report raises broader questions about whether retirement savings should simply maximise returns or also reflect the values and aspirations of those whose money is being invested.
Mindful Money says not all KiwiSaver providers are following the same investment strategy.
According to the report, providers including Simplicity, BNZ, Aurora and MAS reduced exposure to one or more areas of concern during the reporting period.
Others, including Milford, ANZ, Fisher Funds, Mercer, Sharesies, InvestNow and Generate, increased investments across one or more categories highlighted by the charity.
Mindful Money says consumers should regularly review their KiwiSaver provider rather than assuming ethical investment policies automatically align with personal values.
The charity also highlighted several funds it considers to meet its ethical investment criteria while maintaining competitive financial performance.
The report concludes that New Zealanders are increasingly seeking greater transparency over how their retirement savings are invested.
As ESG investing continues to evolve and geopolitical instability influences global markets, questions about balancing financial returns with environmental, social and ethical outcomes are expected to become increasingly prominent.
Mindful Money says its free online database allows KiwiSaver members to examine exactly where their savings are invested and compare providers based on ethical criteria.
With more than $143 billion now invested through KiwiSaver, the report argues retirement savings have the potential to shape not only individual financial futures but also the type of economy and society New Zealand chooses to build.
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