Released today, the 2024 results rank the university at 206th place overall, up from 217th in 2023.
Otago University director of strategy, analytics and reporting David Thomson said the QS methodology had changed.
The increased weighting of sustainability indicators, among other changes, had a positive impact for all New Zealand universities, including Otago.
"This . . . reflects Otago's commitment to sustainability and follows on from our strong performance in the inaugural 2022 QS Sustainability Rankings in which Otago was ranked 47 in the world," he said.
The university was pleased with the new results, noting it maintained its place as the second highest-ranked university in New Zealand.
The climb was "a modest but welcome improvement".
It showed the institution was continuing to perform adequately in the rankings despite ongoing underfunding, he said.
However, the latest assessment was based on metrics gathered by QS that related almost entirely to 2022 and prior years, not to 2023.
"Prior to recent years in which the government funding gap grew due to increasing rates of inflation not being matched by funding increases, Otago placed inside the top 200 of the QS World University Rankings."
The university also ranked 44th for its international faculty ratio, 159th for employment outcomes, and 178th for its academic reputation.
Other metrics scored lower, with the institution ranking 359th for employer reputation, 391st for its international research network and 428th for its international student ratio.
All New Zealand universities climbed higher in the rankings - the University of Auckland was in top place nationally at 68th.
Auckland also ranked 9th globally for sustainability.
QS chief executive Jessica Turner said the tertiary sector was recovering from the impact of the Covid-19 pandemic, and New Zealand was regaining its stature among the top study destinations.
"This landmark edition of the QS World University Rankings showcases the notable strengths of New Zealand's higher education sector, especially its successful progression in championing a sustainable agenda,’’ she said.
Overall, Massachusetts Institute of Technology (MIT) ranked first for the 12th year in a row, while the University of Cambridge and the University of Oxford were second and third respectively.
