With SRI, investments are selected based on a set of standards. For example, weapons contracting, gambling or tobacco may be excluded. Or perhaps companies may be excluded if their board of directors is not gender diverse.

ESG encourages investors to take a broader look at how a company affects environmental, social and governance factors. For example, an oil company may be deemed a suitable investment if they're reducing emissions, give back regularly to their community, have a good safety record and are working to move to more sustainable energy sources.

When you use BetterSaver to find a KiwiSaver fund we first get your thoughts on tobacco, controversial weapons, adult entertainment, nuclear power, civilian weapons, gambling, alcohol and animal testing before making any recommendations. We screen and monitor KiwiSaver providers for exposure to these industries.

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