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AUSIEX: ESG stock trading quadrupled over lockdown

  • June 25 2021
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AUSIEX: ESG stock trading quadrupled over lockdown

By Fergus Halliday
June 25 2021

It may have started small, but the ESG trading movement is quickly gaining momentum among Australia’s investment community. 

ESG stock trading quadrupled over lockdown

AUSIEX: ESG stock trading quadrupled over lockdown

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  • June 25 2021
  • Share

It may have started small, but the ESG trading movement is quickly gaining momentum among Australia’s investment community. 

ESG stock trading quadrupled over lockdown

Adoption of ESG-aligned stocks accelerated during the pandemic, new research by AUSIEX has suggested.

According to the firm’s latest Trading Transformation report, there was a healthy uptick of interest in ESG shares both during the lockdown period and towards the end of 2020.

The report noted that less than 0.8 per cent of established investment accounts had invested in ESG stocks as of November 2019.

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However, this figure almost quadrupled to 2.9 per cent over the following six months.

Mathew Tilley, head of markets and client solutions at AUSIEX, noted that “ESG is increasingly at the forefront of the minds of investors as they make their investment decisions”.

“As the pressure to act increasingly comes from investors who see ESG issues as real investment risks, we will witness many more companies taking decisive and strong action and making environmental, social and governance factors central to their business plans,” he said.

Mr Tilley also noted that many of these ESG-aligned retail traders are now looking beyond the ASX.

“Amid global uncertainty, and indications that Australia may be able to weather the pandemic relatively well, advisers trading through platforms were enacting a flight to quality, with less focus on growth companies and more of a tilt towards the larger caps,” Mr Tilley said.

These comments come on the back of similar findings by Robeco.

In April 2021, Robeco found that 86 per cent of institutional and wholesale investors expect climate change to be at the centre of their investment policy. Meanwhile, 81 per cent see renewable energy as the leading force behind decarbonisation.

“Moving to a low-carbon economy needs a global effort, with governments, regulators, the corporate sector and individuals all playing their part,” said Robeco CEO Gilbert Van Hassel.

“The time to act really is now. As a global leader in sustainable investing, we see it as our duty to share our passion and expertise with those who have yet to fully embrace it, so that together we can rise to one of the greatest challenges facing humanity: the climate crisis.”

AUSIEX: ESG stock trading quadrupled over lockdown
ESG stock trading quadrupled over lockdown
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About the author

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Fergus is a journalist for Momentum Media's nestegg and Smart Property Investment. He likes to write about money, markets, how innovation is changing the financial landscape and how younger consumers can achieve their goals in unpredictable times. 

About the author

author image
Fergus Halliday

Fergus is a journalist for Momentum Media's nestegg and Smart Property Investment. He likes to write about money, markets, how innovation is changing the financial landscape and how younger consumers can achieve their goals in unpredictable times. 

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