Earnslaw Goodlight: Ethical Investment NZ Solutions
Make a Positive Impact Through Ethical Investment
Ethical investing is not just about generating wealth – its about aligning your investments with your personal values. In the course of our investment advice, we naturally do not place your funds in companies that are involved with munitions manufacturing, alcohol, tobacco or carbon intensive industries. This also includes companies associated with manufacture of guidance systems used for munitions.
What is Ethical Investment?
Ethical investing, also known as socially responsible investing (SRI), is an investment approach that considers both financial returns and ethical values. It involves selecting investments based on environmental, social, and governance (ESG) criteria, ensuring that financial growth aligns with personal values.
Why Choose Ethical Investment?
Investing ethically is about alignment with your personal values.
On the one hand, most investors will want to know that that are not assisting those industries that are seen to be negative industries such as Tobacco, Alcohol, Munitions, Slavery, Carbon or those with a high environmental impact
At the same time, ethical investment can play a crucial role in driving positive change. Restricting capital to negative industries to bring about a change in corporate behaviour.
And then allocating capital to positive businesses and industries to enable those businesses to grow and increase their impact.
Careful analysis is required to understand the risks, the benefits and the financial outcomes for you.
If this is an area that is important to you, then please discuss with us and we can talk about building this into any investment advice we may provide.
Why Choose Ethical Investment in New Zealand?
New Zealand has a long-standing reputation for being environmentally conscious and socially responsible. The country is known for its clean, green image and commitment to sustainability. This makes it an ideal spot for ethical investment opportunities, with many companies practising responsible business practices.
By supporting companies with strong ethical practices, you can drive positive change and foster a more sustainable future. Moreover, ethical investing has shown to be financially rewarding over time. Companies prioritising ethics often perform better long-term and are more resilient during market fluctuations, making ethical investment a win-win for your conscience and financial portfolio.
Earnslaw Goodlight's Approach To Ethical Investing
At Earnslaw Goodlight, our investment advice naturally fits into an ethical investment strategy in that it naturally incorporates integrity, sustainability, and growth.
Our approach is built on a criteria to ensure our business investments reflect our client’s values and contribute as positively as they can to society and the environment.
Our Favourite Ethical NZ Investment Options
Through our experience and research, we have identified some of the best ethical investment options in New Zealand. Here are a few of our favourites:
- KiwiSaver: KiwiSaver is a popular retirement savings scheme in New Zealand that offers ethical investment options. We use platforms like Pathfinder to provide our clients with ethical KiwiSaver options.
- Impact Funds: Impact funds are designed to generate financial returns and positive social and environmental impact.
- Green Bonds: Green bonds are investments that fund projects with specific environmental benefits, such as renewable energy or sustainable infrastructure.
- Responsible Investment ETFs: Exchange-traded funds (ETFs) allow investors to access a diverse portfolio of ethically screened companies.
- Individual Company Investments: We also offer the opportunity to invest in specific companies that align with your values and have strong ethical practices.
Industries We Do Not Invest In
We believe in promoting ethical business practices and avoiding investments in industries that have a negative impact on the world. Some of the industries we do not invest in include:
- Fossil fuels and coal mining
- Tobacco and alcohol production
- Civilian firearms, military weapons, and nuclear power
- Gambling, casinos, and adult entertainment
- Companies with poor labour practices
Ethical Investment Trends in New Zealand
Ethical investing in New Zealand is experiencing significant growth and transformation, driven by evolving investor preferences and a heightened focus on sustainability. Here are some of the key trends shaping the landscape of ethical investments in the country:
Rising Demand for ESG Integration
Environmental, Social, and Governance (ESG) factors are increasingly integral to investment decisions. New Zealand investors prioritize companies demonstrating strong ESG performance, reflecting a broader commitment to sustainability and responsible business practices. This shift encourages more businesses to enhance their ESG strategies to attract ethical investors.
Growth of Renewable Energy Investments
With New Zealand’s commitment to becoming carbon neutral by 2050, investments in renewable energy sources such as wind, solar, and hydroelectric power are on the rise. Investors are increasingly channeling funds into green energy projects, supporting the transition to a low-carbon economy and capitalizing on the long-term growth potential of sustainable energy solutions.
Support for Māori and Indigenous Enterprises
There is a growing trend of supporting Māori and other indigenous-owned businesses through ethical investments. These enterprises often emphasize sustainability, community well-being, and cultural preservation, aligning perfectly with the values of ethical investors. This trend not only fosters economic empowerment for indigenous communities but also promotes diverse and inclusive business practices.
Advancements in Sustainable Technology
Technological innovations are playing a crucial role in advancing ethical investments. From fintech platforms that facilitate green investments to blockchain technology ensuring transparency in ESG reporting, New Zealand is at the forefront of integrating technology with sustainability. These advancements make it easier for investors to identify and support companies that are making a positive impact.
Increased Investor Awareness and Education
Educational initiatives and increased awareness about the benefits of ethical investing are driving more Kiwis to consider sustainability in their investment choices. Financial advisors and investment firms are offering specialized services and resources to help investors understand and navigate the ethical investment landscape, leading to more informed and conscientious investment decisions.
Expansion of Ethical Investment Products
The variety of ethical investment products available in New Zealand is expanding, offering investors a wider range of options to align their portfolios with their values. From ESG-focused mutual funds and ETFs to green bonds and socially responsible investment (SRI) options, the market is catering to diverse investor preferences and risk appetites.
Strong Regulatory Support and Standards
New Zealand’s regulatory environment is increasingly supportive of ethical investing, with the Financial Markets Authority (FMA) introducing guidelines that promote transparency and accountability in ESG reporting. These regulations help ensure that ethical investments meet high standards, providing investors with confidence in the integrity and impact of their investment choices.
Focus on Social Impact and Community Development
Beyond environmental sustainability, there is a heightened focus on social impact and community development. Investments are increasingly directed towards projects and companies that address social issues such as affordable housing, healthcare, education, and poverty alleviation. This holistic approach ensures that ethical investments contribute to the overall well-being of New Zealand society.
Future Outlook – A Sustainable and Inclusive Investment Landscape
Looking ahead, the ethical investment landscape in New Zealand is poised for continued growth and innovation. As New Zealand continues to lead in sustainability and responsible investing, ethical investment opportunities will expand, allowing Kiwis to align their financial goals with their values.
Ethical Investing NZ: Discover & Plan
The four different stages of our discovery plan include:
Initial
Consultation
When you contact us for ethical investing NZ services, we will schedule an initial consultation. During this meeting, our advisors will understand your requirements and goals to determine if we are a good fit.
Discovery &
Analysis
Our team conducts thorough research and analyses your current financial situation, risk tolerance, and ethical values. We will use this information to create a personalised investment plan that aligns with your goals.
Investment Selection & Diversification
We offer a range of ethical investment funds in New Zealand that prioritise sustainability, social responsibility, and governance. Our team will work with you to select the right mix of investments and diversify your portfolio to minimise risk while maximising returns.
Ongoing Monitoring & Adjustments
Our team of experts will continuously monitor your investments and make adjustments as needed to ensure they remain aligned with your goals. We also provide regular reports and updates so that you can stay informed about the performance of your ethical investment portfolio.
