Will Goodwin, Co-Chief Investment Officer of NZ Super Fund, says long-term investing requires a long-term view.
In periods of market stress or shifting sentiment, the ongoing relevance of long-held investment principles is often questioned. Over the last two to three years, rising interest rates, geopolitical tensions, rapid advances in technology and spikes in oil prices have led some investors to question their beliefs.
When it comes to sustainable investment, however – contrary to some perceptions – leading global investors, like us, are staying the course.
In 2025 we worked alongside investment experts WTW to commission a survey of leading global asset owners – sovereign wealth funds and public pension funds. This study showed that investors were shifting from environmental, social and governance (ESG) compliance-type activities to strategic, systems-level thinking to support sustainable investment outcomes.
In particular, with the global investing opportunity set facing long-term financial challenges from systemic risks, leading investors are increasingly incorporating climate and sustainability scenarios into their portfolios.
The NZ Super Fund exists to serve future generations. This long horizon shapes how we think about investment risk. Climate change, resource constraints, social stability, governance quality are not abstract concepts: they are variables that shape long-term financial outcomes.
Sustainability is not a “nice to have”, nor is it a cyclical overlay. It is fundamental to risk, return, and resilience over decades, making it a core component of any long-term investment strategy.
It can be tempting to think that the rules of investing have changed and that this time is different. It can be hard to discern the signal amid the noise.
But if anything, a volatile investing environment reinforces a simple truth: long-term sustainable investing is about understanding and anticipating changing structural forces, not reacting to them.
For investors like us, that does not mean predicting exactly how these dynamics will play out. It means developing and implementing an investment strategy that ensures the NZ Super Fund is capable of delivering across a range of possible futures and is best positioned to benefit over the long term.
Sustainability, in this context, is not separate from investing. It is at the heart of investing.
Climate change is the most visible — and financially material — expression of sustainability risk.
In response to political pressures and short-term performance concerns, some investors, particularly in the United States, are being quieter about ESG and sustainable investment. The reality, however, is that investment in renewables and electrification continues apace.
Long-term investing requires a long-term view.
We have seen many market cycles where investors abandon long-standing themes based on short-term signals. The lesson is consistent: long-term value is created by staying strong and staying anchored to fundamentals.
We explicitly recognise climate change as a major source of future uncertainty, requiring an adaptive approach to managing systemic risks and capitalising on new opportunities. The NZ Super Fund’s investment strategy is designed to navigate and to benefit from what will be a multi-decade transition to a lower-carbon global economy.
Sustainability is not a “nice to have”, nor is it a cyclical overlay. It is fundamental to risk, return, and resilience over decades, making it a core component of any long-term investment strategy.
Around the world, long-duration capital is increasingly being deployed into energy transition initiatives, digital assets, and decarbonisation-linked opportunities.
Back in New Zealand, we are leveraging our global experience in renewable energy development to explore the feasibility of a large offshore wind farm off the coast of Taranaki, in partnership with global renewables experts from Copenhagen Infrastructure Partners.
At the proposed 1GW size, this wind farm would generate nearly 10% of New Zealand’s current installed energy base. It also has the potential to reduce New Zealand’s current reliance on hydro lakes to provide baseload power, allowing them to have more battery type characteristics and in turn reduce the country’s dependence on thermal fuels to meet peak demand for electricity.
Projects such as this have the potential to deliver attractive long-term financial returns, economic benefits to New Zealand and strong sustainability outcomes.
While markets will always fluctuate, and market mechanics will always evolve, success for a long-term investor will continue to be based on remaining grounded in enduring principles, not on reacting to every passing shift in sentiment.
It is about managing risk across decades, not reporting cycles. It is about capturing long-term investment opportunities created by structural change, not being distracted by short-term narratives. And for the NZ Super Fund, it is about delivering resilient, long-term returns for all New Zealanders, both the present generation and those to come.