KiwiSaver: Human Rights Abuses in Investments Rise 43% – Mindful Money Report

KiwiSaver investments with ties to companies implicated in human rights abuses have surged by 43 percent in the last six months, reaching over $3.5 billion, according to a report released today by responsible investment platform Mindful Money.

The increase is attributed to both a growing number of companies identified as being linked to human rights concerns and a rise in investment within those companies, Mindful Money founder Barry Coates stated. Public opinion surveys consistently demonstrate that avoiding investments that contribute to human rights abuses is the top priority for KiwiSaver members, highlighting a disconnect between investor values and actual portfolio allocations.

The report identifies several major technology and industrial companies as raising particular concerns, including Meta, Tesla, Thermo Fisher Scientific, and Palantir Technologies. Increased scrutiny is being directed towards the activities of these firms, particularly regarding surveillance practices, the potential for harm through social media platforms, and their involvement in conflict zones.

Alongside technology companies, investments in firms connected to conflicts in Gaza, the West Bank, and Ukraine have likewise risen. Between March and September 2025, KiwiSaver funds allocated to companies providing weapons, surveillance technology, or other support related to these conflicts increased by 14 percent, totaling $856 million.

Though, some KiwiSaver managers question the practicality of comprehensively screening out companies based on human rights concerns. Rupert Carlyon, founder of Koura, argued that the list of companies to avoid is becoming “too long to be realistic.” He cited Caterpillar, a company flagged by Mindful Money for supplying machinery to Israel, as an example. Carlyon pointed out that Caterpillar also engages in activities with positive impacts globally, making a comprehensive assessment challenging.

Carlyon emphasized that clients primarily prioritize investment returns and fees. He suggested that individual consumer choices – such as boycotting companies – may be a more effective means of enacting change than divestment through KiwiSaver funds. “Airbnb… you’re going to stop investing in Airbnb, because you think Notice human rights issues? Does that mean that, you recognize what, we’re never going to use Airbnb ever again?” he asked.

Pathfinder Asset Management founder John Berry offered a contrasting perspective, stating that his funds actively avoid companies identified as having human rights issues. He affirmed the validity of Mindful Money’s values-based approach, praising their transparency and the opportunity provided to companies to respond to concerns. “I think it’s good that there’s a range of options for… some fund managers may focus primarily on just making money. Other fund managers, like Pathfinder, focus on putting a values-based lens, really strong values-based lens over our investing,” Berry said.

Berry articulated two potential motivations for considering human rights in investment decisions: a values-driven desire to align investments with ethical principles, and the belief that companies adhering to human rights standards are likely to deliver stronger long-term financial performance due to increased trust and a positive corporate reputation.

Coates maintains that avoiding companies linked to human rights violations is more effective than attempting to influence their behavior through shareholder engagement. He argued that the relatively compact share of capital held by New Zealand investors limits their ability to effect meaningful change within major global corporations. “If companies are linked to human rights violations, fund providers should respect the wishes of their clients and avoid investing in them,” he stated.