Invest
How sustainable investment is changing the game
Investment in sustainability-themed funds or impact investing has quadrupled in the last three years as “more and more” Australians look to align their investments with their values.

How sustainable investment is changing the game
Investment in sustainability-themed funds or impact investing has quadrupled in the last three years as “more and more” Australians look to align their investments with their values.

That’s what the CEO of lobby group, Responsible Investment Association Australasia (RIAA), Simon O’Connor said, explaining that Australia has seen a “massive shift” towards ethical investment.
“We’ve seen a lot of interest in the private wealth area, from families, from retail investors, charities and foundations and also the SMSF market, where we’re seen a real interest to make sure that people’s own values are being reflected in the way they invest money,” he said.
“People are asking questions around: Am I invested in tobacco, am I invested in fossil fuels or coal, and am I invested in companies that are breaching human rights? We’re also seeing a lot of interest in people avoiding investment in controversial weapons such as landmines, so we’re really seeing that this is a starting point for people.”
RIAA defined responsible investment as assets being invested through “some form of responsible investment strategy”, giving the examples of impact investing which focuses on funds that deliver both financial and environmental or social returns, sustainability themed funds, as well as the “integration of environmental, social and governance considerations”.
Using this benchmark, RIAA reported that responsible investments in Australia have more than quadrupled to $622 billion in the three years to July 2017. RIAA added that this number equates to nearly half, 44 per cent, of Australia’s assets under management.
Mr O’Connor said: “We are seeing more people wanting to align their investments and savings with their values and enquiring with their advisers or their fund managers as to how they can do that, so we’ve really seen that growing at a really rapid rate.
“As of today… about one in every two dollars in Australia is invested through responsible and ethical funds. So we’ve seen this massive shift.”
Growing interest in equating financial investment with ethical investment has also prompted mortgage industry players to consider new avenues.
Karen Doust, mortgage broker and director at Jenesis Finance told Nest Egg that she had launched a partnership with ethical wedding service, Less Stuff — More Meaning as a way to “effect change”.
Jenesis Finance, which launched six months ago, offers loans sourced via lenders that invest in sustainable practices or that give back to the community.
She explained: “The more we looked into it, the more we realised that people out there now are thinking about what they're actually doing with their banking," she said.
“Before, I think people just thought that there were majors and those were the only options that they had, but a lot of people are now realigning their values in life and would like their banking to align with those values.”

Stock market
Markets succumb to jitters as US CPI maintains strength
Following a slight drop of 0.2 per cent in the United States inflation rate, the latest US April consumer price index (CPI) data indicating higher than expected figures has triggered a fall in the US ...Read more

Stock market
Qantas forecasts return to profitability, announces ultra-long flights
Qantas expects its net debt to condense from $5.5 billion at the end of 2021 to $4.5 billion at the end of April following a period of sustained recovery in travel demand. ...Read more

Stock market
Headwinds to outnumber tailwinds in 2022
Headwinds are likely to outnumber tailwinds in 2022 as the world continues to readjust to the post-pandemic era, one expert has said. ...Read more

Stock market
Aussies can now net frequent flyer points by trading stocks
Superhero is looking to sweeten the deal for traders who are excited for the return of international travel. ...Read more

Stock market
Facebook debuts new name
Zuck gets meta. ...Read more

Stock market
2 big questions investors should ask as Australia reopens
Investors need to stop thinking about how to profit from the mineral sector’s struggles, and start looking at when the best time to ride the recovery will be. ...Read more

Stock market
Trading app popularity skyrockets as retail sector booms
In 2021, trading has never been easier for retail investors, meaning the number of users on trading applications has exploded to an all-time high. ...Read more

Stock market
ETF rush predicted to intensify
The Australian ETF sector advanced AU$6.3 billion in August to hit a new milestone, as its popularity among financial advisers soared. ...Read more

Wrapping up an eventful 2021
Listen now

What Omicron means for property, and are units right for first-time buyers? What is equity crowdfunding? Are industry super funds tapping into member funds to save their skins?
Listen now

Will housing affordability improve in 2022? Will buy now, pay later become the norm? Why are Aussies staying in failing super products?
Listen now

Who really benefits from crypto ETFs? How will the RBA respond to rising inflation? Could a mandate help address unpaid super?
Listen now

Stock market
Markets succumb to jitters as US CPI maintains strength
Following a slight drop of 0.2 per cent in the United States inflation rate, the latest US April consumer price index (CPI) data indicating higher than expected figures has triggered a fall in the US ...Read more

Stock market
Qantas forecasts return to profitability, announces ultra-long flights
Qantas expects its net debt to condense from $5.5 billion at the end of 2021 to $4.5 billion at the end of April following a period of sustained recovery in travel demand. ...Read more

Stock market
Headwinds to outnumber tailwinds in 2022
Headwinds are likely to outnumber tailwinds in 2022 as the world continues to readjust to the post-pandemic era, one expert has said. ...Read more

Stock market
Aussies can now net frequent flyer points by trading stocks
Superhero is looking to sweeten the deal for traders who are excited for the return of international travel. ...Read more

Stock market
Facebook debuts new name
Zuck gets meta. ...Read more

Stock market
2 big questions investors should ask as Australia reopens
Investors need to stop thinking about how to profit from the mineral sector’s struggles, and start looking at when the best time to ride the recovery will be. ...Read more

Stock market
Trading app popularity skyrockets as retail sector booms
In 2021, trading has never been easier for retail investors, meaning the number of users on trading applications has exploded to an all-time high. ...Read more

Stock market
ETF rush predicted to intensify
The Australian ETF sector advanced AU$6.3 billion in August to hit a new milestone, as its popularity among financial advisers soared. ...Read more