This document discusses the legal duties of New Zealand trustees to manage climate change-related risk to trust investments.

The authors conclude that trustees’ duties of prudent investment, of impartiality towards beneficiaries, and to act in the best interests of beneficiaries all align in relation to addressing climate change investment risk. In light of the increasing awareness of climate-related risk in New Zealand in 2021, trustees will be expected to identify and assess whether climate-related risk may have a material impact on trust investments. While ever context-dependent, trustees should actively consider whether trust investments are at risk of material financial impact as a result of physical impacts or regulatory, market or legal developments connected to climate change.