Climate change is a real financial risk, Super Fund managers say

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Across the globe and here in New Zealand, climate change is emerging not only as an environmental crisis but as a profound economic and social challenge. Financial institutions such as New Zealand’s Super Fund and global giants like JPMorgan and Morgan Stanley now treat climate change as a long-term financial risk. These organisations are aligning with the Paris Agreement and adjusting investment strategies, even as they acknowledge the likelihood of catastrophic warming beyond 2°C. While investors adapt, New Zealand’s political response appears slower and more hesitant. Parliamentary debates remain focused on immediate risks like flooding, while new emissions targets have been criticised as insufficient by international partners. Foreign Minister Winston Peters has even questioned the nation’s participation in the Paris Accord, echoing isolationist positions with few global followers.

Meanwhile, the race to transition away from fossil fuels has intensified the demand for critical minerals such as lithium, cobalt, nickel, and rare earth elements—resources essential for renewable energy infrastructure and electric vehicles. However, mining these resources, particularly from the seabed of the Pacific Ocean, has sparked ethical and environmental concerns. Pacific Island nations, deeply connected to the ocean spiritually and culturally, now face pressure from global powers to exploit their marine environments in the name of green energy. This conflict evokes fears of neocolonial exploitation in the pursuit of a greener future.

Innovation and grassroots efforts are also gaining ground. From cities like Oslo experimenting with electric construction equipment to music events slashing emissions—such as Massive Attack’s groundbreaking 98% emission reduction concert—real-world examples of low-carbon alternatives are becoming visible. These initiatives show that radical emissions cuts are achievable, especially when energy use, transport, and lifestyle choices align with sustainability goals.

As climate risks escalate and the cost of inaction mounts, a clearer picture is emerging: economic interests, political will, and cultural values must converge in shaping an effective and equitable climate response. Whether through ambitious public policy, private investment, or community-led innovation, the path ahead demands courage and cooperation at all levels—before the economic and environmental costs become irreversible.

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Here is the full list of articles...

New Zealand Super Fund managers - who integrate sustainable investment practices across all portfolios - are emphasising that climate change poses a significant long-term financial risk. The fund is aligned with the Paris Agreement to achieve net zero by 2050, optimizing investments in greener companies. The Super Fund's goals to lower emissions and fossil fuel exposure have already surpassed targets. Despite external pressures, managers' report no negative impact on returns from their sustainability efforts. The Super Fund aims to grow to $100 billion in the next five years.  Read more…

Major banks like Morgan Stanley and JPMorgan are preparing for a future where climate change exceeds the Paris Agreement’s 2°C limit. Documents reveal that these financial giants now expect global warming to reach 3°C, which will likely cause severe droughts, sea-level rise, and extreme weather. Despite backing clean energy transitions, the banks continue to adjust their strategies to reflect this dire outlook, signalling a shift toward profitability in industries like air conditioning. This recalibration highlights their recognition of the inevitable risks associated with catastrophic climate change. Read more... 

A recent New Zealand parliamentary debate on climate change adaptation highlighted a slow response to long-term climate threats. The focus remained on immediate, tangible issues like flooding and property loss rather than broader, future challenges such as drought, wildfires, and rising sea levels. While the Finance and Expenditure Committee's report offered potential frameworks for adaptation, it largely avoided difficult questions. Politicians expressed concern but struggled to commit to comprehensive action, leaving critical decisions for the future while acknowledging the urgency of addressing climate change. Read more... 

The Paris Agreement requires each country’s new climate targets for 2035 to represent the “highest possible ambition”. It should be no surprise then, that Simon Watts’ new 51 percent target for 2035 – an increase of a singular point compared to our current 50 percent target for 2030 – was described as “less likely to be considered sufficient by key partners and the global community” compared with any other target. Watts cites the economic cost of a more ambitious target, but has he considered the future cost and damages from climate change? Read more… 

While Simon Watts sets his “ambitious” targets, Winston Peters is questioning New Zealand’s role in fighting climate change, while suggesting that we follow America in pulling out of the Paris Agreement. However, no other countries have followed America thus far, and the Paris Agreement still maintains its importance in both the global economy and protecting our local economy from fiscal shocks caused by climate change. Our Minister of Foreign Affairs’ critique toward our climate goals only adds us to a list of countries we don’t want to be on. Read more… 

Polymetallic nodules containing many minerals required for our energy transition sit at the bottom of their oceans. However, the extraction of these minerals will devastate the ocean environment and harm Indigenous community’s spiritual connection to the sea. Stronger economies such as China are slowly enticing Pacific nations such as Nauru and the Cook Islands with the economic benefits of extracting these minerals. But Pacific nations are spiritually connected to the ocean. Convincing the world’s “ocean people” to destroy these environments for profit will prove difficult, echoing colonialism in recent history.  Read more... 

To address climate change, we're going to need a whole lot of metal. Ending our dependence on fossil fuels and adopting this new, greener technology requires 4 minerals to help the world on its green journey. It takes lithium and cobalt to build the batteries that power electric vehicles and e-bikes, nickel and rare earth elements to construct solar panels and wind turbines, and copper to build the wires that move renewable energy. To secure, refine and manufacture into usable products required global cooperation. Read more… 

Electric Construction Equipment Promises a Quiet Revolution. While still rare on most worksites globally, they do promise a quieter construction site. it is one that could make a real difference in creating cleaner, quieter cities and a healthier environment for workers and residents alike and stands to deliver other positive effects, easing public resistance to noisy construction projects. Imagine a job going on outside your house or workplace where the equipment 75% quieter than equivalent diesel-powered model and there are no diesel fumes wafting through the air. Read more... 

Last year, a concert by UK trip-hop collective Massive Attack made history - not for the music, but for its environmental footprint. The concert slashed energy-related greenhouse gas emissions by 98% compared to similar shows, The concert, known as Act 1.5 and held in Bristol, was 100% battery powered and sold 100% vegan food. The performers opted for low-carbon transport; organisers found that the artists’ travel choices reduced transport emissions by 73%. Local Attendees were also encouraged to travel to the event using low-carbon transport methods. Read more... 

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