Sustainability or Tokenism? An Ethical Review of ESG Investment Portfolios in New Zealand Universities

Universities increasingly adopt sustainability frameworks to align their financial practices with social and environmental values. Among these frameworks, Environmental, Social, and Governance (ESG) investing has emerged as a prominent expression of institutional ethics. This study examines the ESG investment policies of all eight public universities in Aotearoa New Zealand to assess whether these initiatives represent genuine ethical commitment or function primarily as symbolic gestures. Using a qualitative document analysis approach, the research analyses investment policy documents, sustainability strategies, and annual reports to evaluate the extent of transparency, stakeholder involvement, Indigenous inclusion, and policy alignment. The findings reveal that while ESG principles are frequently referenced in institutional rhetoric, they are often weakly implemented, lacking enforceable guidelines, clear reporting mechanisms, or meaningful governance structures. Māori ethical frameworks are notably absent from investment oversight, despite public commitments to the Treaty of Waitangi. Moreover, there is minimal stakeholder engagement, particularly from students and Māori communities, in the development or review of ESG policies. The study concludes that ESG in New Zealand’s university sector remains largely performative and recommends governance reform to embed transparency, bicultural ethics, and participatory accountability. By transitioning from symbolic to substantive ESG practices, universities can enhance the legitimacy of their sustainability commitments and fulfil their responsibilities as public, Treaty-bound institutions.