Sustainability lag risks NZ trade

Toitū Tahua: Centre for Sustainable Finance’s inaugural report on how New Zealand is tracking on the Sustainable Finance Forum 2030 Roadmap for Action, shows we are slipping behind Australia and other trading partners.

The two year old roadmap lays out a plan for redirecting capital and resources to transition to a low-carbon, more sustainable, equitable economy but despite the government’s introduction of mandatory climate-related disclosures, New Zealand’s progress is slow and uneven the report shows.

Toitū Tahua CEO Jo Kelly says New Zealand cannot lag on international reforms on sustainable finance given our economy’s inextricable links to global shareholders, investors and consumers.

She points out that although only larger businesses are required to comply with the new climate reporting rules, they will be obliged to look at the carbon footprint of the many small businesses that make up their supply chain.
The report’s release comes not long after the Australian government announced a raft of national sustainable finance projects, including an all-of-government sustainable finance strategy and a sustainable finance taxonomy.

Call to large KiwiSaver providers

Kelly says there’s also an urgent need to direct investment into developing homegrown climate solutions, citing KiwiSaver funds which are investing large amounts of New Zealand capital offshore enabling the sustainability objectives of other countries.