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With legal insights from MinterEllisonRuddWatts, Mosaic has investigated the compliance and quality of KSS CRDs, in order to understand industry-specific challenges and derive insights for primary CRD users.
KSS have the potential to be increasingly impactful drivers of sustainable investment. Through strong transparency and accountability, particularly in the disclosure of climate-related metrics and targets, KSS managers can ensure that investors, regulators, and industry participants have a data-driven view of how climate factors are integrated into investment decisions.
This research, Climate-related Disclosures – Analysis of the KiwiSaver Schemes, is one of New Zealand’s first deep-dives into an industry-specific CRD pool. 17 KSS CRDs, each lodged by a separate manager, were reviewed for compliance with the Aotearoa New Zealand Climate Standards’Metrics & Targets requirements, and for trends in voluntary characteristics.
The findings show varying levels of disclosure maturity across KSS CRDs, and evidence the leadership of certain, but not all bank-ownedKSS managers in providing compliant, comprehensive, and decision-useful metrics and targets.
While most of the KSS CRDs assessed were fully compliant with requirements, if only due to the use of Adoption Provisions, some lagged behind due to resourcing constraints.
Factors such as data availability and access to expertise were key drivers in CRD compliance levels, while strong existing climate maturity differentiated leaders in the field due to the ability to disclose transparent insights above requirements.
Going forward, we expect that increased data accessibility and reliability, as well as stronger materiality assessments, will support CRDs to serve their intended purpose: driving informed investment decisions and accelerating the transition to a low-emissions, climate-resilient future.
Download Climate-related Disclosures – Analysis of the KiwiSaver Schemes report.
A condensed version of the research report can be found here.
