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Sustainable Finance: Woke or warning

Sustainable Finance:  Woke or warning

When I was a wee lass out of uni, one of my jobs was at a meat processing plant checking food safety rules were followed.

Everyone had to wear the right gear — hairnets and beard snoods — no exceptions. One day I spotted a magnificent, snood-less beard.

As I got closer, I glanced at the name tag. It read ‘Sharon.’

I quietly walked on.

That moment stuck with me.

Not because of the beard, but because of the risk it represented.

One stray hair in the wrong place could have shut down exports, caused a product recall, and triggered huge costs.

All because no one wanted to have an awkward, but necessary, conversation.

Now, two decades on, the stakes are still high — just with a different focus.

Food safety is a given and the world expects environmental responsibility.

In the March 2025 quarter, food and fibre made up 82.5% of New Zealand’s exports. Unlike many countries, we farm to export, not just to feed ourselves — we need access to overseas markets to stay afloat.

That’s why the Government and our banks are pushing to make sure our products tick the right boxes to get through the door.

This is where the Sustainable Finance Taxonomy comes in.

It’s advertised as a framework to help define whether a business is green (meeting climate goals), orange (on track), or red (falling short).

Banks already report on how their lending stacks up against climate targets.

There is also a strong correlation between profitable farms and high environmental performance, and vice versa.

Farms that don’t keep up pose financial risks — and not just environmental ones.

Having a national guide helps everyone speak the same language.

It could make it easier for farms and businesses to apply for funding, pass audits, and get credit for doing the right thing.

But, as always, the devil will be in the detail.

If the criteria are too rigid or one-size-fits-all, it could end up being a paperwork nightmare — more about ticking boxes than making progress.

The key is to focus on real action, not red tape.

Consultation on the taxonomy has now closed.

Let’s hope those writing the rules have listened to your feedback and shaped something practical — something that shows the world New Zealand isn’t just clean and green in theory, but in practice too, and rewarding our farmers along the way.

So, the question is: are you ready to do what it takes to get your products on the global table? Or will someone have to come and ask you to wear a snood?

By Eva Harris

Eva Harris is the principal environmental advisor/director for Enviro Collective.