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Jo Townsend, Chief Executive

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A commitment to sustainable investment is a natural extension of the Guardians’ intergenerational mandate.

There is no point in building up a store of wealth for future generations if we create an unlivable environment, or if our investments are contributing to social harm to the very people we are working to support.

It all comes back to our mandate: to invest the Fund on a prudent, commercial basis in a manner consistent with best-practice portfolio management; maximising return without undue risk to the Fund as a whole and avoiding prejudice to New Zealand’s reputation as a responsible member of the world community.

Sustainable finance means two things.

One – environmental, social and governance risks to the Fund’s portfolio are taken into account. They are fundamental to long-term risk and return.

Two – the implications of the Fund’s investments for the environment and society are factored into our investment decisions – ultimately, whether to buy, sell or hold.

The Guardians’ Climate Change Investment Strategy is key. Climate change creates both investment risk – for example, that of stranded assets and regulatory intervention. But climate change can also create opportunity.

The Fund is on track to be net zero by 2050.  Emissions intensity has been significantly reduced and exposure to fossil fuel reserves has essentially been removed – so far, without hurting financial returns.

The Fund is also upping its investments in companies that we believe will benefit from the transition to a low carbon economy.

In New Zealand and globally, we are also engaging with companies on climate change – because the Fund will only be able to reach net zero if the companies we invest in are successful in doing so themselves. We work in collaboration with other local and global investors to make sure our voice is as strong as possible.

The Guardians’ shift to a Sustainable Finance approach is just beginning. We have much to do. But we are absolutely clear that this work is key to our mission – it's written into our purpose: Sustainable investment delivering strong returns for all New Zealanders.

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Logo of NZ Super Fund, Te Kaitiaki Tahua Penihana Kaumātua o Aotearoa