Which KiwiSaver Provider Is the Most Ethical? What Mindful Money Tells Us

You probably know roughly how much is sitting in your KiwiSaver.

But do you know what your money is actually invested in?

Behind the name of your KiwiSaver fund can sit investments in hundreds, sometimes thousands, of companies. Depending on the fund, those investments may include businesses connected to fossil fuels, weapons, gambling, animal cruelty or environmental and human rights concerns.

That's where Mindful Money comes in.

Mindful Money is an independent New Zealand charity established to help investors understand where their money goes and compare funds based on ethical considerations. Its website allows you to check individual KiwiSaver funds, see investments that may conflict with your values, and search for alternatives that meet its ethical criteria.

So, according to Mindful Money, which KiwiSaver providers are leading the pack?

First, What Does Mindful Money Actually Do?

Mindful Money isn't a KiwiSaver provider and it isn't there to tell you which fund will produce the highest return.

Instead, it analyses investments.

Its Fund Checker allows investors to look underneath their KiwiSaver fund and see whether their money is exposed to companies associated with areas of concern. Its Fund Finder then allows people to identify funds that better match the issues they care about.

Mindful Money says it analyses KiwiSaver and investment fund portfolios against identified companies of concern twice a year. It also sets its own standard for ethical investment. Funds that meet that standard, have credible verification and participate in the platform are designated "Mindful Funds."

That distinction matters. Mindful Money specifically notes that a fund not carrying its Mindful Fund designation shouldn't automatically be interpreted as "unethical".

Ethics aren't completely black and white either. One investor might be particularly concerned about fossil fuels, while another cares more about weapons, animal welfare or human rights.

That's why the ability to look beneath the fund name can be useful.

So, Who Is the Most Ethical KiwiSaver Provider?

If we use Mindful Money's 2025 Best Ethical KiwiSaver Provider award as the benchmark, there was a clear winner:

1. Pathfinder – 2025 Best Ethical KiwiSaver Provider

Pathfinder Asset Management won Mindful Money's Best Ethical KiwiSaver Provider award in 2025. It also won the separate Best Ethical Investor award.

The judges highlighted Pathfinder's work both in avoiding harmful investments and directing capital towards positive social and environmental outcomes.

Mindful Money specifically pointed to investments in areas such as renewable energy and social housing. The judges said Pathfinder had continued to demonstrate leadership and evidence of higher impact.

So, if someone asks, "Who did Mindful Money rank as the most ethical KiwiSaver provider?", Pathfinder is the clearest answer based on the dedicated 2025 KiwiSaver award.

That doesn't necessarily make Pathfinder the best KiwiSaver provider for every person. Risk profile, fees, investment strategy, performance, timeframe and personal circumstances still need to be considered.

But from a purely ethical-investment perspective, its recognition is significant.

2. Generate – Highly Commended

Generate was highly commended in the same 2025 Best Ethical KiwiSaver Provider category.

Interestingly, the judges highlighted Generate's approach to investing for positive outcomes rather than simply excluding undesirable companies.

Mindful Money noted Generate's early investment in a Salvation Army social housing bond, followed by further investment in areas including social housing, renewable energy and venture capital. The judges described this positive-impact approach as a distinctive strength of its funds.

That's an important distinction in ethical investing.

There is a difference between saying "we won't invest in this" and actively asking "where could this money do some good?"

Both approaches can have a place.

What About the Current Ethical Leaders?

Mindful Money's more recent analysis shows that ethical investing isn't limited to one or two KiwiSaver managers.

Its latest analysis identifies a group of KiwiSaver offerings meeting its ethical criteria, including funds associated with Pathfinder, Generate, Simplicity, Booster's socially responsible funds, Harbour, MAS and Always Ethical.

And the picture continues to evolve.

For its 2026 awards, Mindful Money changed the structure of the main provider award. Rather than having a KiwiSaver-only category, its Best Ethical Fund Provider award now covers both KiwiSaver and retail investment fund providers.

Pathfinder was again selected as a finalist alongside Harbour Asset Management, TAHITO and Trust Investments. Generate and Pathfinder were also finalists in a separate Best Positive Outcomes Integration category.

That makes a simple numbered "best to worst" ranking difficult—and probably misleading. Different providers can lead in different areas of responsible investment.

Ethical Doesn't Just Mean "No Fossil Fuels"

This is where ethical investing becomes more interesting.

Mindful Money allows investors to consider issues including fossil fuels, weapons, animal cruelty, human rights violations and environmental harm. Its Fund Finder can then match people with funds based on the issues they want to avoid or substantially reduce.

Some managers primarily use exclusions, meaning they avoid certain industries or companies.

Others also use stewardship, where they remain invested but use shareholder voting and engagement to push companies towards better behaviour.

And some managers deliberately allocate capital towards investments intended to create positive outcomes—such as renewable energy, social housing or other environmental and social initiatives.

So two funds can both call themselves "ethical" while taking quite different approaches.

Does Ethical Investing Mean Sacrificing Returns?

This is probably one of the biggest concerns people have.

Mindful Money's research suggests ethical investing hasn't necessarily required investors to accept lower returns.

Its analysis published in March 2025 found that KiwiSaver funds meeting its ethical criteria had, as a group, produced higher returns than the wider KiwiSaver market over the year to September 2024 across most risk categories.

That doesn't mean ethical funds will always outperform.

Investment markets change, different strategies perform differently at different times, and past performance isn't a reliable indicator of future results.

But it does challenge the assumption that investors automatically have to choose between their values and investment performance.

The "Most Ethical" Fund May Not Be the Right Fund for You

This is probably the most important part of any ethical KiwiSaver comparison.

A provider winning an ethical investment award doesn't automatically mean you should move your KiwiSaver there.

Imagine two people in their thirties.

One wants to avoid fossil fuels and weapons as much as possible and has decades before they expect to access their KiwiSaver.

The other is hoping to make a first-home withdrawal within three years.

They could share exactly the same ethical values but need very different investment strategies because their timeframes and tolerance for market volatility are different.

Ethics should therefore form part of the KiwiSaver decision—not necessarily replace all the other considerations.

How to Check How Ethical Your KiwiSaver Really Is

One of the best features of Mindful Money is that you don't have to rely solely on the marketing material from your KiwiSaver provider.

You can use its free Fund Checker to investigate where a fund is invested, or its Fund Finder to explore funds that better match your values.

That transparency can lead to some worthwhile questions.

What industries are you comfortable investing in?

What do you definitely want to avoid?

Do you simply want harmful investments excluded, or would you prefer some of your money to actively support positive environmental and social outcomes?

And once you've answered those questions, does the fund also make sense financially?

So, Who Comes Out on Top?

If we're talking specifically about Mindful Money's dedicated 2025 Best Ethical KiwiSaver Provider award, Pathfinder took the top spot, with Generate highly commended.

But there isn't a universal ethical ranking that works for everybody.

Mindful Money's broader research identifies several KiwiSaver managers and funds meeting its ethical standards, and its Fund Finder deliberately asks investors about their values before suggesting suitable ethical options.

That's probably the more useful way to think about it.

Rather than simply asking, "Which KiwiSaver is the most ethical?", ask:

"What does ethical investing mean to me—and does my KiwiSaver reflect it?"

You may be surprised by the answer.

If you'd like personalised advice, a financial adviser can help compare ethical considerations alongside risk, fees, investment strategy, performance and your wider financial goals before you make a decision.

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Disclaimer

This article provides general information only and does not constitute personalised financial advice. References to ethical rankings and awards are based on information published by Mindful Money. An award or ethical designation does not mean a fund is appropriate for every investor. Past performance is not a reliable indicator of future performance, and investment values can rise and fall.