Why fed-up consumers are going green

Chatting with nestegg, Australian Ethical’s head of ethics, Dr Stuart Palmer, said the power of the people is now forcing businesses to limit their impact on the environment.

Fed-up consumers

Consumers are growing “increasingly frustrated from governments at a policy level [and] political attachments to coal”, which has meant that they are taking matters into their own hands and moving away from traditional assets, Dr Palmer said.

“Sadly, there’s an increasing frustration about the appetite and capacity of governments to take meaningful actions on challenges like climate change,” he commented.

He further considered that most of these fed-up consumers are younger investors who are only just beginning to have enough capital to put into the market.

“Whilst we are seeing people taking up responsible investing across age groups, there seems to be a real impetus amongst Millennials,” he said.

Consumers are also becoming more aware of the impact of their investments, Dr Palmer added.

“When people recognise they have a choice whether to invest in an ethical or mainstream fund, they reflect on that,” he said.

“They did not know the choice was available to them beforehand.”

What can consumers do to play their part

Dr Palmer believes investors can limit the damage to the environment by changing investments, superannuation and their consumption habits.

Firstly, it will take a large investment away from traditional power stations such as coal, and fuel a move towards more clean energy sources, he said.

“On the financial front, we need a massive shift in capital to invest in things like renewable power generation.”

Secondly, Dr Palmer advised that investors who are looking to be more conscious to look closely at their superannuation fund and how it is being invested.

“Find out where your super is invested and whether that is what you wanted to be invested in,” he advised.

Superfund members can “make a conscious choice as to where you want to be”, with nestegg noting Australian Ethical’s recent pledge to protect five acres of the Amazon rainforest on behalf of every new and referring super member.

Finally, consumers can also help limit their global footprint by choosing to spend their money with sustainable businesses and reduce their creation of waste during their day-to-day lives.

“Virtually anything we consume has an environmental footprint, so let’s just be conscious of that,” Dr Palmer concluded.

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About the author

Cameron is a journalist for Momentum Media's nestegg and Smart Property Investment. He enjoys giving Aussies practical financial tips and tricks to help grow their wealth and achieve financial independence. As a self-confessed finance nerd, Cameron enjoys chatting with industry experts and commentators to leverage their insights to grow your portfolio.

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