As environmental, social, and governance (ESG) reporting becomes a strategic priority for New Zealand businesses, intellectual property is emerging as a powerful, yet often overlooked, asset in the sustainability narrative. In 2025, the convergence of ESG goals and IP strategy is reshaping how companies innovate, communicate, and compete.
The Evolving ESG Landscape in New Zealand
New Zealand’s commitment to climate transparency was formalised through the Financial Sector (Climate-related Disclosures and Other Matters) Amendment Act 2021, which introduced mandatory climate-related disclosures for large financial institutions and listed companies.
Despite the enactment of the Act, adoption has been slower than expected and New Zealand is still catching up to global standards. According to KPMG’s 2025 Survey of Sustainability Reporting, only 57 of the country’s top 100 revenue-generating entities currently publish ESG reports. Furthermore, just two new reporters have adopted the External Reporting Board Climate Standards this year. Meanwhile, investor and regulatory expectations continue to rise, with growing emphasis on biodiversity, climate resilience, and ethical governance.
While the above marks progress, it also highlights a significant opportunity for businesses to lead in transparency and accountability of their ESG commitments.
Intellectual Property: A Strategic ESG Asset
IP plays a critical role in supporting and evidencing ESG commitments. Businesses that align their IP portfolios with sustainability goals can enhance their ESG performance and stakeholder trust.
Environmental innovation: Patents for clean technologies, sustainable packaging, and carbon-reducing processes demonstrate a company’s commitment to environmental stewardship.
Social responsibility: Trade marks and brand messaging that reflect ethical sourcing, diversity, and community engagement reinforce social values.
Governance: Transparent IP management and licensing practices reflect strong governance principles.
By integrating IP into ESG strategies, businesses can strengthen their market position while meeting evolving compliance and investor expectations.
The Rise of AI and New IP Challenges
The increasing use of AI-generated content introduces new complexities. Businesses are using AI to create marketing materials, product designs, and even software – but the legal framework around ownership of AI-generated works remains unclear.
New Zealand’s intellectual property legislation has not been amended to clearly address how AI-generated works fit into existing copyright and patent laws. This uncertainty presents governance risks, particularly around accountability, ethical use, and the potential misuse of cultural content. These innovations, if properly protected, can become valuable ESG assets.
What Businesses Should Consider
To stay ahead, New Zealand businesses should:
- Audit their IP portfolios to identify assets that support ESG goals.
- Incorporate IP metrics into ESG reporting, such as the number of green patents or ethical branding initiatives.
- Develop governance policies around the use of AI in content creation and innovation.
- Seek legal guidance to ensure IP strategies align with ESG frameworks and regulatory expectations.
As ESG reporting evolves from a compliance exercise to a strategic imperative, intellectual property is becoming a key differentiator. Whether it’s protecting sustainable innovations or navigating the complexities of AI-generated content, IP is no longer just a legal tool – it’s a vital element of responsible business in New Zealand.
For tailored advice regarding AI and IP, our team is here to assist.
Disclaimer: The content of this article is general in nature and not intended as a substitute for specific professional advice on any matter and should not be relied upon for that purpose.
