Over half a billion KiwiSaver dollars and other retail investments invested in Governments on human rights ‘high alert’

Nov 5, 2025

Groundbreaking new research from Motu Research has revealed more than half a billion dollars of KiwiSaver and other retail investments were lent to Governments on “high alert” for human rights violations.

The findings shine a light on a hidden corner of ethical investing — government bonds — and open the door for Aotearoa New Zealand to lead change.

“People deserve to know what their money is supporting,” said Motu Affiliate Anne-Marie Brook. “Until now, investors and fund managers have focused on the ethical dimension of other types of investments – especially shares in companies, while sovereign bonds have escaped such scrutiny.”

A chance to lead in ethical finance
The research shows that if fund managers applied consistent human rights checks across all investments, Aotearoa could build a fairer and more sustainable financial system. There is real potential for new products that direct investment toward countries with stronger human rights records — giving investors confidence their savings support a fairer world.

Gaps in current standards
More than two-thirds of the high-alert investments came from funds certified by the Responsible Investment Association Australasia (RIAA), revealing that existing certification standards don’t screen for sovereign bond investments linked to human rights violations.

From transparency to transformation
Aotearoa New Zealand’s strong financial disclosure rules already support transparency, which permitted this ground-breaking research. Expanding human rights due diligence across all investments would build on this strength and position Aotearoa as a global leader in ethical finance.

Motu Research calls for action

We urge fund managers and industry bodies to lift standards, for index providers to create human rights–focused products, and for investors to demand more ethical options.

“Ethical finance is good economics,” said Anne-Marie Brook. “By leading in this space, Aotearoa can show that doing what’s right can also drive long-term value.”