The New Zealand Superannuation Fund has achieved an AAA rating in the latest Global Climate Index report, and ranks at 15 in its list of top global asset managers.

What exactly does this mean?

The Global Climate Index Report looks at 500 of the world's biggest asset owners and rates them. The report rates them by their strategies in responding to risks from climate change.

The report assesses governance and strategy, portfolio risk management, and metrics and targets.

According to the recent announcement by the NZ Super Fund, only 17 asset owners around the world achieved this top AAA rating in the survey. Of these 17, the NZ Super Fund is number 15.

According to the report, European asset owners are the global leaders on managing climate risk but Australia and New Zealand are now beginning to rival Europe.

The index is published by the Asset Owners Disclosure Project, an independent, non-profit organisation which aims to encourage long-term investors to address climate-related risk.

The NZ Super Fund's rating increased from D in 2016 to AAA in the latest report and its ranking improved by 94 places.

The current AAA rating is a large increase from the NZ Super Fund's rating in 2016 - an increase of 94 places. The NZ Super Fund's rating increased from a D in 2016 to the AAA in the latest report.

The change reflects the release of the Fund's climate change strategy, announced in October 2016, and its participation in the AODP 2017 survey. Previously the Fund was assessed on its publicly-available information alone.

This increase in rating is most likely due to recent changes the Super Fund has made. In October 2016, the Super Fund released its climate changed strategy and its participation in the AODP 2017 survey.

In the past, the Fund was assessed on its publicly-available information alone.

The Fund's strategy on climate change has four parts: carbon footprint reduction, analysis, engagement and investment in new opportunities.

According to the Super Fund, the strategy includes a commitment to reduce the Fund's equity exposure both to fossil fuel reserves and carbon emissions.

The report states the NZ Fund's aim to integrate carbon measures into its investment models and increase engagement with companies on climate change.

The New Zealand Superannuation Fund recently announced the achievement of an AAA rating in the latest Global Climate Index report.