The urgency of action
This past year, the world crossed a sobering threshold: 2024 was the first full year in which global temperatures exceeded 1.5°C above pre-industrial levels (1850–1900), a time before humans began burning CO2-emitting fossil fuels on a large scale. This is more than just a number; it’s a turning point that marks the need for urgency of global climate action.
Every single month in 2024 was either the warmest or second warmest on record, with the planet’s average temperature reaching 1.6°C higher than the pre-industrial baseline, according to the European Union's Copernicus Climate Change Service (C3S).
Scientists confirm this isn’t just an outlier, it’s the result of decades of greenhouse gas emissions. While crossing 1.5°C doesn’t mark the permanent passing of the Paris Agreement target (which measures longer-term averages), it’s a wake-up call that the world is not moving quickly enough to address the climate crisis.
Why this matters for New Zealand
Around the world, and here at home, the impact of a changing climate with the growing frequency and intensity of extreme weather events is becoming impossible to ignore. The devastating wildfires in Los Angeles this month, which destroyed homes, businesses, and livelihoods, along with our own droughts, flooding and cyclones in recent years, highlight the ongoing impacts, and the escalating costs of climate change.
In 2024 alone, Hurricanes Milton and Helene in the US, floods in Spain, and heatwaves in places like Mexico and Saudi Arabia claimed thousands of lives. These events are stark reminders that climate change doesn’t respect borders - it’s a global challenge that affects everyone.
How New Zealand is tackling the climate crisis
The Government is stepping up with its climate change strategy and the release of the Second Emissions Reduction Plan, a key tool for turning strategy into action. This plan lays out how we’ll cut emissions, transition to a low-carbon economy, and stay on track to meet our 2050 net-zero target. It’s an ambitious roadmap, and the stakes couldn’t be higher.
As a country that's heavily reliant on agriculture, tourism, and trade, New Zealand is particularly vulnerable to the effects of a warming climate. At the same time, we’re also well-positioned to lead on climate action. With abundant renewable energy resources, innovative technology, and a growing sustainability movement, we have the tools to build a resilient, low-carbon future. Investing to improve the climate and environment not only helps mitigate the risks of climate change but also creates opportunities for economic growth, job creation, and global leadership.
The role of KiwiSaver investors
For KiwiSaver members like you, the significance of these climate milestones is twofold. First, climate risks are reshaping economies, markets, and industries at an accelerating pace. Strategies like the Emissions Reduction Plan and the global push for net-zero emissions mean businesses must adapt - or risk being left behind. Second, this crisis presents an opportunity. Through your KiwiSaver investment with Aurora, you’re part of a collective effort to support sustainable businesses, drive innovation in low-carbon solutions, and influence companies to improve their environmental practices.
How Aurora is leading the way
We take a proactive approach to managing climate risk. Sustainable investing isn’t just the right thing to do, it’s the smart thing to do for ensuring your long-term financial resilience and growth. We prioritise investments in companies actively reducing their climate-related risks and avoid those not taking the issue seriously. By investing in businesses with strong environmental strategies and sustainable practices, we aim to generate better long-term returns for your retirement while making a meaningful impact on the planet.
As we look ahead, the challenge is immense, but so is the opportunity. Together, we can contribute to a more sustainable and resilient future, for the planet and generations to come. We’re proud to have you alongside us on this journey.
Want to know more?
You can read more about our climate action here.
DISCLAIMER
This information is provided in a general nature only and should not be construed as or relied on as financial advice. This is not a recommendation to invest in a particular financial product or class of financial products. You should seek financial advice specific to your circumstances from a Financial Adviser before making any investment decisions.
Past performance is not a reliable indicator of future performance. The value of your investment may go up and down.