- Renewable energy investments have accelerated dramatically, with companies committing billions toward solar, wind, and battery storage projects.
- Worker wellbeing and safety improvements have emerged as critical social priorities amid significant organisational restructuring.
- Artificial Intelligence (AI) governance and cybersecurity have become board-level imperatives as companies navigate rapid technological change.
New Zealand's listed companies demonstrated meaningful progress on sustainability initiatives during the 2025 reporting season despite a challenged global landscape. We saw particularly strong momentum in renewable energy development and safety performance. We examine the key environmental, social, and governance themes that emerged from company disclosures this year.
Renewable energy transition
The shift toward renewable energy has moved from planning to execution, with multiple companies completing or advancing major clean energy projects that are reshaping New Zealand's energy landscape. This transition has been driven by both regulatory requirements and commercial strategies as companies position themselves for a low-carbon future.
Contact Energy, for example, has achieved 88% renewable generation (up from 81% in FY24) following the completion of its Tauhara and Te Huka 3 geothermal power stations. The company has invested $1.2 billion in completed renewable projects with another $1.1 billion currently under construction. Similarly, Genesis Energy opened New Zealand's largest solar farm at Lauriston, capable of generating 100 GWh annually, while advancing three additional solar projects totalling over 400 MWp of capacity.
The scale of investment signals a structural shift in the sector. Mercury has committed $1 billion to renewable generation development, targeting 3.5TWh of new generation by 2030. Meanwhile, Meridian Energy plans to invest $3 billion over the next five years, with a pipeline of 5.9GW of renewable development options. These investments, combined with grid-scale battery storage projects underway at multiple companies, represent a significant transition in New Zealand's energy infrastructure.
Workforce safety and engagement
Companies have prioritised employee wellbeing and safety even with challenging economic conditions driving significant restructures for some companies. The focus on safety has yielded tangible results, with several companies achieving notable progress in injury reduction and safety culture development.
Fletcher Building's safety performance stood out with a 12% improvement in Total Recordable Injury Frequency Rate and 19 business units achieving ISO 45001 certification. The company won the Australia Institute of Health & Safety (AIHS) Safety Leader of the Year Award and has been piloting AI technologies for facilitating further safety progress. Tourism Holdings also reported a significant improvement in its lost time injury frequency rate (32% reduction) over the past year, alongside a meaningful increase (110%) in its hazard reporting and crew observations.
However, the year also brought significant workforce challenges. Spark's transformation saw its workforce reduce from 5,291 to 4,043 employees, with engagement scores dropping to 50% from 67%. Fletcher Building also underwent major restructuring, though companies generally maintained strong support systems including enhanced parental leave policies, mental health programs, and flexible working arrangements. The emergence of AI tools for productivity, as seen at Mercury and Spark, may lead to further workforce evolution ahead.
Technology governance and cyber resilience
The rapid adoption of artificial intelligence and ongoing cybersecurity threats have elevated technology governance to a board-level priority. Companies are developing comprehensive frameworks to manage both the opportunities and risks presented by emerging technologies.
Vector's GridAware AI platform, developed in partnership with Google's innovation lab, demonstrates the significant potential of AI in infrastructure management. Spark launched its "Bravety" AI tool for customer care while maintaining strong governance through its Data Ethics Committee. Tourism Holdings used AI to extend its Scope 3 emissions inventory, showing practical applications in sustainability reporting.
Cybersecurity investments have intensified across the market. EBOS achieved ISO 27001 certification across seventeen business units, while Genesis Energy enhanced its capabilities through a Maturity Enhancement Programme. Vector also continued its investment in cyber security capabilities through its Equalise product offering. These developments highlight the growing emphasis on robust cybersecurity measures to protect data and ensure operational resilience.
Looking ahead
The 2025 reporting season reveals companies at various stages of their sustainability journeys, but with clear momentum toward more ambitious goals and integrated approaches. As climate reporting requirements mature in their second year, we expect enhanced disclosure quality and greater comparability between companies. The significant renewable energy investments announced this year will begin delivering results, fundamentally changing New Zealand's emissions profile.
Key areas to watch over the next year include the integration of nature-positive commitments into business strategy, the evolution of AI governance frameworks as use cases expand, and the implementation of modern slavery legislation, should it progress. Companies that successfully navigate these challenges while maintaining strong operational performance will be well positioned to create long-term value for all stakeholders.
The reporting season demonstrates that sustainability has moved from the periphery to the core of business strategy. Leading companies are not just managing ESG risks but actively pursuing opportunities that align commercial success with positive environmental and social outcomes. This integration suggests New Zealand's corporate sector is maturing in its approach to sustainable business practices, though the pace and scale of change must accelerate to meet the challenges ahead.
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This publication is provided for general information purposes only. The information provided is not intended to be financial advice. The information provided is given in good faith and has been prepared from sources believed to be accurate and complete as at the date of issue, but such information may be subject to change. Past performance is not indicative of future results and no representation is made regarding future performance of the Funds. No person guarantees the performance of any funds managed by Harbour Asset Management Limited.
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