ACC launches Climate Change Impact Fund
We're extending our commitment to reducing greenhouse gas emissions with the launch of a $50-$100 million Climate Change Impact Fund.
The Climate Change Impact Fund will seek to generate commercial returns by investing in activities that help reduce New Zealand’s carbon footprint, says ACC’s Chief Investment Officer Paul Dyer.
"Our aim is to be proactive in leading New Zealand's commitment to net zero emissions by 2050. We have the balance sheet, profile, in-house expertise and investment disciplines needed to make impact investing work to mitigate climate change.”
We share the views of the New Zealand Climate Change Commission, in its 2021 draft advice, that major emissions reductions need to be made across the board, from every sector. The broad-based approach to emissions measurement ensures the heavy emitters in all industries are captured, as well as the companies responsible for the most material emissions at source.
“We are currently building our Climate Change Impact Fund team and expect to be actively looking for investments this year,” Dyer says. “Our approach aims to strike the right balance between ambitious carbon reduction targets, investment performance and supporting a sustainable and resilient transition.”
We’ve undertaken further assessment work on our targets and approach to climate change in light of the declaration by Parliament of a Climate Change Emergency, the Government’s announcement of carbon neutrality for the Public Service, and the draft report released in February by the Climate Change Commission.
Our investment portfolio
ACC’s core role is preventing injuries, caring for people who have been injured and then helping them return to work or independence. Our investment portfolio provides strong financial returns that allow New Zealanders to pay substantially less in levies for accident cover.
This is our second impact portfolio after the launch last year of a Health, Safety and Wellbeing fund that seeks to improve the health and wellbeing of New Zealanders while achieving a commercial return. The fund has already made two investments: in the Mentemia workplace wellbeing app co-founded by Sir John Kirwan, and in Robotics Plus, whose technology improves the safety of workers in sectors including forestry, transport and agriculture.
We continue to accept applications for suitable investments for our first impact fund, and invite applications for our climate change fund as we grow this programme.
How to apply
Contact the ACC Private Markets team via email.
Email climatechange@acc.co.nz
Our Investment team oversees some $50 billion of assets, achieving a benchmark-beating 7.59% return last year, ensuring New Zealanders continue to pay less in levies for accident cover. For more on our investments, see our investments web page.
Our Private Markets team invests in property, infrastructure, and private equity. Assets include – or have included (and are not limited to) – Solar Zero, Les Mills International, Kiwi Group Holdings Limited (owner of Kiwibank), CORT Social Housing, Mondiale, Scales Corporation, Icebreaker and Bell Tea.
