FundCompareKiwiSaver scheme comparison

What is ESG (Environmental, Social, Governance)?

ESG investing screens KiwiSaver scheme fund holdings against environmental, social, and governance criteria — for example excluding fossil fuels, weapons, or tobacco.

Detailed Explanation

Approaches range from negative screens (exclude harmful sectors) to positive screens (overweight sustainability leaders) to engagement (use shareholder votes to influence company behaviour). The provider's responsible-investment policy is disclosed in the PDS and SIPO. Independent ratings vary; check what each provider actually excludes versus only marketing language.

Example

An ethical growth fund might exclude fossil-fuel producers, controversial weapons, and tobacco; a climate-aligned fund might additionally exclude high-emission utilities.

Frequently Asked Questions

Do ESG funds underperform?

Mixed evidence. Returns vary by approach and time period. Compare on net returns over multi-year periods.

Related Terms

SIPO (Statement of Investment Policy and Objectives)Product Disclosure Statement (PDS)Diversification
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FundCompareKiwiSaver scheme comparison

Independent KiwiSaver information for New Zealanders. Compare fund data, view fees, and explore provider options. General information only — not financial advice.

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