In 2020, the New Zealand Superannuation Fund prepared its first climate change report and set itself new emissions reductions targets.

The report was based on recommendations of the Task Force on Climate-related Financial Disclosures.

It represented a step-change for the NZD 57 billion ($40 billion) fund, as it also laid out plans to reduce the carbon emissions intensity of the fund by "at least" 40% by 2025, and the carbon reserves of the fund by at least 80%, by the same date. Both targets are in relation to a reference, "low-carbon" portfolio, a notional portfolio of passive, low-cost listed equities and fixed income investments.

The targets represented a raised bar, compared with previous targets it set in 2016, to reduce the carbon emissions intensity of the fund by "at least" 20% by 2020, and the carbon reserves of the fund by at least 40%, by the same date. Both targets were achieved in 2019, according to the fund managers.

Matt Whineray, CEO of the New Zealand Superannuation Fund, said in a statement that its own analysis suggested the fund's carbon exclusion policy "added approximately NZD800 million to the fund and about 60 basis points per annum to performance since it was brought in".

Also last year, the fund was included in the UN Principles for Responsible Investment (PRI)'s Leaders Group 2020, in recognition of its climate reporting. The initiative is designed to showcase the leadership of 36 top entities among more than 3,500 PRI signatories.

The fund has previously developed climate change scenarios to help it understand the impact on its portfolios of climate change of 2°C and 4°C, and suggested it may in future study if its portfolios are aligned with a 1.5°C warming scenario.

The fund is also a supporter of the Transition Pathway Initiative.

Created in 2001, the global portfolio of investments comes from government contributions. The fund will eventually help pay for the increased cost of universal superannuation payments, caused by the country's ageing population.