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Investors are now linking the financial sector to climate change
Four in five Australians think that the financial sector needs to step up when it comes to climate change – stating that it has a role to play in ensuring Australia can be resilient to future extreme weather events.
Investors are now linking the financial sector to climate change
Four in five Australians think that the financial sector needs to step up when it comes to climate change – stating that it has a role to play in ensuring Australia can be resilient to future extreme weather events.
The research is compiled in the Responsible Investment Association Australiasia’s report, From Values to Riches 2020: Charting consumer expectations and demand for responsible investing in Australia, and revealed that a majority of Australians now view major climate change-induced disasters as being influenced by financial and economic systems.
Environmental issues are now seen as important to four-fifths of Australian investors, according to analysis.
Research undertaken for the report revealed that 79 per cent of Australians think the financial services sector can help in ensuring the nation is less vulnerable to climate change, while 80 per cent believe the sector has a role to play in ensuring Australia can be resilient to future extreme events.
More tellingly, nine in 10 Australians believe Australia’s financial sector “has a role to play in supporting communities recovering from the recent bushfires”.
According to the report, recent weather conditions in Australia have caused two-thirds (67 per cent) of Australians to think about their investments.
Almost half – 49 per cent – have queried whether their investments are contributing to climate change, while 43 per cent of respondents said such weather events had prompted them to consider switching financial institutions to more ethical or responsible options.
The onus isn’t squarely on the shoulders of the financial sector, however, with four in five respondents expressing the belief that the government should play a role in ensuring that our financial system “contributes positive social, environmental and economic outcomes for the country”.
It’s more than the proportion that indicated financial institutions should play a role in ensuring that the sector contributes in such a way – at 66 per cent.
nestegg has previously reported on the association’s finding that an overwhelming majority of Australians now expect their financial providers – inclusive of super funds, banks, financial advisers and other institutions – to invest their money in a responsible and ethical manner.
We revealed that three-quarters of Australians would consider moving their banking, super or other investments to another provider if it was revealed their current provider was investing in companies engaged in activities not consistent with their values.
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