Understanding Ethical Investing

What Is Ethical Investing in KiwiSaver?

And why it might matter more than you think.

When it comes to your KiwiSaver, you’re not just investing in your future—you’re also investing in the world’s.

That’s the big idea behind ethical investing. It’s not just about how much your money grows, but how it grows—and who it supports along the way.

If that sounds a bit fuzzy, don’t worry. We’re here to break it down into plain English (the Savvy Saver way).

What is ethical investing?

If you choose a KiwiSaver fund branded “ethical,” your money should be invested according to your values.

That means the fund carefully considers environmental, social, and governance (ESG) factors—along with broader ethical issues tied to individual companies. It’s about choosing investments that aim to do the right thing: protecting people and the planet, while also backing businesses that can thrive sustainably.

In short: you’re not just growing your savings—you’re backing businesses that reflect the kind of world you want to retire into.

Wait—so it’s not just about the environment?

Exactly. A common misconception is that ethical investing is all about climate change or sustainability. And yes—environmental concerns are part of the picture.

But ethical investing also digs into social and governance issues. That means:

· How a company treats its workers

· Whether it promotes diversity, equity, and inclusion

· Its stance on human rights

· How transparent it is

· Whether it’s been caught up in lawsuits, data breaches, or shady boardroom deals

Even if you're not fussed about carbon emissions, these other factors say a lot about a company’s values—and how well it’s likely to perform over the long term.

Do I have to sacrifice returns?

No! That’s one of the biggest myths.

Many ethical funds perform just as well—or even better—than traditional ones over the long term. Why? Because they often back future-focused companies solving real-world problems. Think renewable energy, sustainable tech, and inclusive workplaces.

But, like any investment, ethical funds can still go up and down. You’ll want to choose a fund that matches both your values and your risk profile.

How do I know if my KiwiSaver is ethical?

Here’s how to find out:

1. Check your provider’s investment policy

Most KiwiSaver providers list what they do and don’t invest in. Some even have dedicated ethical funds with names like “Sustainable Growth” or “Balanced Impact.”

2. Use independent tools

Websites like Mindful Money let you search your fund and see where it is involved.

3. Look beyond the label

Just because a fund has “ethical” in the name doesn’t mean it ticks all the boxes. Make sure it aligns with your personal values—whether that's climate action, social justice, or animal welfare.

Is ethical investing right for me?

If you care about where your money goes—and want your savings to support companies making a positive impact—then yes, ethical investing could be a great fit.

But remember: Ethical can come in different funds You can still earn strong returns while investing responsibly Not all “ethical” funds are created equal—it is best to do your homework

The Savvy Saver Bottom Line

You don’t need to be an expert to invest with your conscience. You just need a little clarity, the right tools, and a fund that fits your values and financial goals.

We’re here to help you find it—without the jargon, fluff, or guesswork.

Take our 2-minute Quiz

We’ll help match you to a KiwiSaver fund that suits you—including your ethical preferences.