Ethical / responsible KiwiSaver scheme funds

We include any KiwiSaver scheme fund whose name explicitly asserts a screen — 'Ethical', 'Responsible', 'Socially Responsible', 'Sustainable', 'ESG', 'SRI', 'Impact', 'Carbon-Aware', 'Low-Carbon', 'Green'. The screening framework varies by fund — some exclude weapons, tobacco, fossil fuels, and gambling; others actively tilt toward companies with stronger ESG ratings; others apply impact-investing mandates. Read each fund's PDS and SIPO to understand the specific framework.

Research is mixed and depends on screen depth + time horizon. Strict exclusion-only funds can underperform during fossil-fuel rallies and outperform during low-carbon transitions. ESG-tilted funds tend to track conventional indices closely after fees. Impact-focused funds carry more concentration risk. Past returns do not predict future returns — compare the 5-year data in the table above and read each fund's SIPO for the specific approach.

It varies a lot. Some 'ethical' or 'responsible' funds apply minimal exclusions (just weapons + tobacco), while others apply extensive carbon, biodiversity, human-rights, and governance screens. The Responsible Investment Association Australasia (RIAA) certifies a subset of NZ funds as meeting an audit standard. Check each provider's PDS + SIPO for the actual exclusion list and the screen methodology.

In our snapshot 0 KiwiSaver providers offer at least one screened fund option — 0 options in total. Providers with the largest screened-fund line-ups typically include Booster (Socially Responsible Investment range), Pathfinder (all funds screened), Pie Funds, Generate, Kernel (Low-Carbon variants), and Mercer (Ethical Leaders range).

Averaged across the screened funds in our snapshot, fees come to about 0.00% per annum — typically similar to or slightly above the average for conventional funds of the same fund type. The fee premium reflects the cost of running the screen and (for impact funds) the more active research process. Pathfinder and Kernel are notable for offering screened mandates at conventional-fund fee levels.

Exclusion screening removes companies in 'bad' industries (weapons, tobacco, fossil fuels, gambling) from the portfolio. Impact investing actively allocates capital toward companies whose business activities deliver measurable positive outcomes (clean energy, healthcare access, education). Many KiwiSaver scheme funds combine both — exclusions plus an ESG tilt — but pure impact-investing options are rarer and typically run as concentrated active strategies with more volatility.