Five themes shaping the future of responsible investment

I recently attended the Responsible Investment Association Australasia (RIAA) Aotearoa conference that brought together regulators, company leaders, and investors. The discussions were wide-ranging, from the future of climate reporting to the role of AI in finance . Five themes came into focus. These aren’t just abstract ideas for large institutions but issues that will affect capital flows and companies performance – fundamental considerations for all investors.

1. Climate reporting is growing up.

When climate reporting first became mandatory in New Zealand, many companies treated it like homework – a compliance exercise to get through. But things are starting to change. Boards are becoming more engaged, management teams are integrating climate risk into decisions, and climate reports are shaping long-term strategy. Companies that use reporting as a genuine business tool are more likely to adapt and thrive as our economy changes.

2. The climate transition is a growth opportunity.

Climate change is often discussed as a risk, but it is also creating entire new industries. Examples like offshore wind, renewable energy, and electrification show how capital is flowing globally into solutions. New Zealand has the opportunity to attract global investment with the right conditions in place. For investors, the key is to grow beyond the exclusion of high carbon sectors and actively look for companies that are positioning themselves in the “new economy”.

3. Values alignment is complex, but it matters.

One of the strongest themes was how personal values increasingly influence investment choices. Some people want to avoid certain industries altogether, while others want to know companies are making progress on environmental or social issues. There’s no right answer, but the important step is clarity. Investors who define what matters most to them whether it’s exclusions, engagement, or impact are better able to ensure their portfolios reflect those priorities and in doing so, drive meaningful change.

4. Governance and trust are back in the spotlight.

Good governance might sound dry, but it’s the foundation of sustainable performance. Boards today face constant disruption – climate shocks, geopolitical volatility and rapid tech adoption. They need the skill sets, independence, and foresight to steer companies through. At the same time, trust is under pressure. Edelman’s global trust barometer, which surveys 33,000 people across 28 countries, shows that more than 60% of people feel “the system is stacked against them,” meaning they believe governments, businesses, and institutions don’t serve ordinary people fairly.  Companies with strong leadership, transparency, and accountability will build confidence and create long-term value.

5. AI is reshaping business – and raising new questions.

Artificial intelligence is no longer a future concept – it’s already being used to analyse climate risks, monitor controversies in real time, and manage supply chain challenges. These tools bring speed and insight, but they also raise tough questions about bias, privacy, and accountability. For investors, there is value in paying close attention to how companies adopt and govern AI. Those that do it responsibly may gain both an efficiency edge and a reputational advantage.

What does this all mean for you?

The clear message from the conference is that sustainability is now mainstream. It influences how companies report, where they invest, how they govern themselves, and how they use technology.

For investors, the most powerful step is to stay engaged: ask questions, be clear on your values, and work with your adviser to make sure your portfolio reflects both your financial goals and the issues that matter most to you.

Because investing isn’t just about today’s share price. It’s about building confidence that your money is aligned with the future you want – for personal wealth and for the next generation.

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