NZ Super to announce new climate focused investment standards
New Zealand's $30 billion sovereign wealth fund is to announce new environmental investment rules, as part of a push towards sustainable investment.
On Wednesday the New Zealand Superannuation Fund will announce rules designed to make its investment portfolio resilient to climate change.
While it is understood the new rules would not explicitly rule out investment in fossil fuels or mining, the fund, established to help cover New Zealand's rising pension costs, is expected to set "hurdle rates" for investments which are not considered sustainable.
This would likely mean investments in industries which are not considered sustainable would need to offer the fund higher rates of return than those which are.
The new rules would also set out an expectation that the fund would search for new opportunities in clean investment.
Earlier this month infrastructure investor Infratil announced a new partnership with NZ Super to fund a company seeking to invest in wind farms and solar electricity installations in North America.
Back in 2010 the two organisations purchased the downstream assets of Shell New Zealand, which was later rebranded as Z Energy, a major fuel retailer.
Both parties have since sold most of the original holding (NZ Super retains a stake of just over 10 per cent in Z Energy), making a profit of around $1 billion each.