The responsible investment market in New Zealand closed another successful year in 2021, increasing by $37 billion to reach $179 billion. Assets invested using a leading approach to responsible investment now make up almost half of the total market (49%).

Nineteen investment managers and asset owners out of the 52 assessed are demonstrating leading responsible investment practices. These Responsible Investment Leaders explicitly and systematically consider ESG factors in capital allocation and are highly transparent, reporting publicly not just on their activities to improve environmental and social sustainability but also on the outcomes they achieve.

While the COVID-19 pandemic continued to impact financial markets, as it did in 2020, it did not hinder the progress of the responsible investment industry.

Attention to concerns around the quality of sustainability claims, or ‘greenwashing,’ rose in 2021. With ongoing heightened public interest in responsible investing, the role of regulators, standards, codes, labeling, and certification has come into focus.