New Zealand nonprofit Mindful Money has launched a campaign calling on New Zealanders to use their investment power to protect and restore the oceans, which are being degraded at an alarming rate. The company said $3 billion (USD$1.71 billion) of pension investment through a program called KiwiSaver contributes to ocean destruction.
“Oceans are arguably our most important ecosystem. We should treat them as our most important treasures,” said Barry Coates, Co-CEO of Mindful Money. “But the reality is our oceans are being damaged by the activities of the world’s largest transnational companies operating in the vastness of the oceans where few are held to account. The irony is that billions of dollars of our investments are supporting these companies.”
Mindful Money said its research focuses on international companies that impact ocean health, reflecting the global coverage of most KiwiSaver and investment funds. The 100 largest companies account for 60% of revenues in the ocean economy and their activities are likely to cause most of the impacts.
The organization’s Fund Checker allows those with KiwiSaver or investment funds to see whether their funds are causing harm to oceans. It recommends investors call on their fund managers to divest from companies unwilling to stop harm, or they can switch to ocean-friendly funds using Mindful Money’s Fund Finder.
“The institutions managing our money need to bear their share of responsibility,” said Coates. “They should not be investing in companies whose activities continue to damage our oceans. It’s our savings being invested and we can make choices about where our money goes.”
Oceans are vital for our planetary systems, producing half of the world’s oxygen, regulating our climate and sequestering most of the greenhouse gases we emit. They support a vast range of habitats from mangroves to coral reefs, and are home to diverse species from tiny shells to the great blue whale. Healthy, living oceans are also a foundation of long-term economic value, especially for communities that depend on fish and marine resources for their livelihoods.
Commercial use and exploitation is damaging the ability of oceans to support these vitally important functions. Key drivers of ocean degradation include marine plastic pollution, waste dumping and toxic chemical accumulation, overfishing that exceeds reproduction rates, physical destruction of marine habitats through seabed mining and bottom trawling, and climate emissions causing ocean heating and acidification.
Companies that use ocean resources typically do not bear the costs of their impacts on the oceans. With governments and international bodies failing to adequately protect oceans from damage, companies are making profits at the expense of ocean health. Mindful Money argues that additional mechanisms for strengthening corporate accountability are urgently needed – particularly through the investment chain.
The campaign focuses on the role of investment institutions that provide funding for companies whose activities are causing ocean damage. These institutions, the nonprofit said, use New Zealanders’ KiwiSaver and investment funds to purchase and hold shares, giving them a powerful governance role over these companies.
“We need to take action to prevent further damage and restore our oceans,” Coates said. “This should include advocacy for strong international agreements, expanding Marine Protected Areas and proper regulation. But we should also use our power as investors.”
The campaign highlights growing opportunities to invest in ocean health and regeneration. New ventures are emerging to restore oceans, supporting natural processes that have shown rapid regeneration when adverse impacts are reduced. While most investment in ocean regeneration has come from governments or philanthropy, there is increasing impact investment from leading trusts and foundations.
The organization suggests KiwiSaver and investment funds can invest in these early-stage unlisted companies as part of their overall portfolios. Many investment providers recognize the importance of nature, though their approach is typically framed narrowly as reducing investment risk. Mindful Money argues this is a starting point for institutions to recognize their impacts, stop investing in harm and start allocating investment to regeneration.
