- Responsible Investing
Investing in a way that incorporates environmental, social and governance (ESG) issues, manages risk, and endeavours to generate attractive long-term returns is an important part of our investment decision-making process.
See some of our responsible investing highlights below, or for a detailed overview download our Responsible Investing Policy at the bottom of this page.
What is ESG investing and why does it matter?
ESG stands for ‘Environmental, Social and Governance’. ESG Investing is a strategy that considers both financial returns and the social and environmental impacts of investments.
ESG considerations include environmental and sustainability measures such as climate impact, energy efficiency and waste management. Social factors include human rights, fair trade and employee work/life balance. And good governance includes mitigating risks like bribery and corruption.
We look at the companies we’re considering investing in, to see how they stack up against these measures. We believe that companies who proactively manage ESG issues are not only doing the right thing but are more future-focused and will ultimately deliver better returns for our members.
As part of our responsible investment process we specifically exclude companies involved in the manufacture of tobacco, whale meat, cluster munitions or nuclear explosive devices.
We're proud to have been a signatory to the United Nations Principles for Responsible Investment since 2018.
Our funds are 'Mindful Funds'
All of Generate’s funds have been recognised officially as ‘Mindful Funds’ by Mindful Money.
Mindful Money is an independent New Zealand charity that tracks and compares KiwiSaver and investment providers based on their responsible standards. The Mindful Fund badge is awarded to responsible investment funds that meet Mindful Money’s criteria for avoiding harm, practicing stewardship, and supporting sustainable companies.
See mindfulmoney.nz for more details.
A holistic approach to responsible investing
We're also avid promoters of impact investing and we work actively with partners for a more sustainable future.
Generate was the first KiwiSaver Scheme to make an impact investment into social housing with a $15 million investment in Salvation Army community bonds, and in 2021 we were part of a group that won “Best Collaboration” at the Sustainable Business Awards, for our part in the ‘Aotearoa Pledge’ – an initiative to raise and invest $100 million into affordable housing in New Zealand.
Since then, we’ve invested over $45 million into affordable housing with partners including Community Finance, the Salvation Army and Brightlight. These investments have contributed to the financing of 192 new, warm homes, while also providing fair market investment returns for our KiwiSaver members.
We’re also a major shareholder in Skyline Healthcare Group (SHG), New Zealand’s market leader in aeromedical transport. They provide essential healthcare services throughout New Zealand, with scheduled and emergency patient transfers. We’re proud our impact investment helps support Kiwis when they need it most.
Generate has also chosen to work with Live Ocean to protect and restore our significant ocean spaces. The ocean and the life in it face multiple stressors and Live Ocean supports and invests in promising marine science, innovation and marine conservation projects.
Find out more about the Live Ocean Foundation.