What is changing?
In 2023, RIAA is introducing a two-tiered approach to differentiating responsible investors in Australia and New Zealand. The highest-scoring, approximately 20% of investment managers on RIAA’s Responsible Investment Scorecard, are designated as ‘Responsible Investment Leaders.’ Meanwhile, investment managers that achieve a score of at least 15 out of 20 on the scorecard but are not within the top 20% will be recognised as ‘Responsible Investors.’
Previously, all investment managers that scored above 15 were identified as Responsible Investment Leaders. To celebrate these achievements, RIAA member organisations that achieve either recognition receive an insignia and a communications pack to showcase their commitment to excellence.
Why is RIAA changing the process?
This change is being made in response to evolving industry, stakeholder, and consumer expectations regarding what constitutes leading practice. This decision takes into account the feedback from our members, who expressed a desire to preserve the esteemed reputation associated with the ‘Responsible Investment Leader’ status.
Since 2020, there has been remarkable growth in the number of investment managers adopting responsible investment practices, and we’ve witnessed significant improvements in how they implement these responsible investment strategies. By 2022, nearly half of all the investment managers we assessed met the criteria of Responsible Investment Leader by reaching the cut-off (15 out of 20) on our Responsible Investment Scorecard.
As responsible investment practices continue to evolve, it is important that we raise the bar for ‘leadership’ in the sector. By continually reviewing and refining the assessment process, our goal is to recognise and celebrate the exemplary leaders who truly stand out.
How is RIAA changing the designation of Responsible Investment Leader?
Starting in 2023, only investment managers who score in the top 20% among all organisations assessed will be identified as ‘Responsible Investment Leaders’.
What is not changing?
We continue to use the Responsible Investment Scorecard to assess investment managers. Through the annual Responsible Investment Benchmark Survey, we will continue gathering valuable insights on responsible investment practices across Australia and New Zealand. The responsibly invested assets of investment managers that achieve at least 15 out of 20 on the Responsible Investment Scorecard will continue to contribute to the total market Responsible Investment AUM (assets under management).