In New Zealand and Australia, the impacts of climate change are reshaping investment strategies as investors increasingly consider climate-related risks. Recent extreme weather events have heightened awareness, leading to a shift in focus from past fund performance to future resilience. In New Zealand, the government has relaxed mandatory climate risk reporting for companies with market capitalizations below NZ$1 billion (approximately $600 million USD), affecting over half of the 164 companies previously subject to these rules. Despite this, a report from Deloitte indicates that investor expectations for climate risk management remain strong. Funds with high environmental, social, and governance (ESG) ratings are seeing significant inflows, as a 1% increase in past performance correlates with larger investments in these funds compared to those with weaker sustainability profiles. As climate policy concerns rise, investors are favoring sustainable funds, while physical risks lead to a broader pullback from riskier assets. The evolving landscape suggests that firms positioning themselves for a low-carbon transition may find it easier to access capital, while those lagging behind face increasing pressure.