Meeting consumer expectations of responsible and ethical investing
With interest in responsible and ethical investing at an all-time high, RIAA’s consumer research shows that 88% of Australians and 74% of New Zealanders expect their super, KiwiSaver, or other investments, as well as the money in their bank account, to be invested responsibly.
RIAA’s research also shows that 79% of Australians and 59% of New Zealanders are more likely to choose ethical and responsible funds and products that have independent certification.
To this end, RIAA’s directory of certified products and advisers increases the transparency and discoverability of products and advisers certified in line with the Responsible Investment Standard.
The recognised symbol
The Responsible Investment Certification Symbol acts as a navigational tool to help investors find certified products and advisers. It allows people to identify investment options that suit their values. They can then find out more detailed information about the option or investment product's approach to responsible investment.
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What we certify
Financial Products
A certified financial product implements an investment style and process that systematically takes into account environmental, social, governance and ethical considerations, and the reliability of this investment process has been verified by an external party. The product accurately reflects its label and description.
Investment Management Services
A certified investment management service has been verified to offer responsible investment services and certified financial products in a manner that meets the operational and disclosure requirements under the Responsible Investment Standard.
Financial Advisers
A certified financial adviser has committed to offering responsible and ethical investment advice to all their clients, has demonstrated education and experience in offering specialist advice, and captures responsible investment products on their approved products list.
Financial Advisory Groups
A certified financial advisory group has a minimum of 50% of their advisers certified against the Responsible Investment Standard, are committed to enabling responsible investment training to their adviser network, and include responsible investment products on their approved products lists.
What is the Responsible Investment Certification Program?
Responsible investing, also known as ethical or sustainable investing, is a holistic approach to investing, where social, environmental, corporate governance and ethical issues are considered alongside financial performance when making an investment.
RIAA’s Responsible Investment Certification Program is the leading initiative for distinguishing quality responsible, ethical and impact investment products and services in Australia and New Zealand.
It is the longest running responsible investment program in the world, recognised by investors and consumers across the region, providing confidence that a product, service or adviser is delivering on their responsible investment promise and meeting the Responsible Investment Standard.
By being RIAA certified, I’ve been able to promote myself on the RIAA website and also on my own marketing materials, using the Certification Symbol. Most importantly I’m able to participate at RIAA education sessions like workshops and conferences and discuss ideas with other RIAA certified advisers about product and ethical issues. I really value that RIAA keeps me up to date on the latest developments in responsible investment and that they advocate on our behalf as well.
Karen McLeod
Ethical Investment Advisers
Certification Program Partners
The Certification Program partners with key stakeholder groups in its governance and delivery. These partnerships enable RIAA to maintain a robust, transparent, independent and well-governed Program that retains its credibility in the market. Our partners include:
Certification Assessment Panel
An arm's length governing body made up of experts that determines whether a financial product/service meets the Responsible Investment Standard based on recommendations put forward by the RIAA Certification Team.
ESG Data Partners
Well-established ESG research and data providers who offer further in-depth ESG analysis to the Certification Program to support the assessment process.
Independent Verification Panel
An external panel of auditors who confirm that procedures are in place to deliver on the product issuer’s responsible investment strategies as outlined in their public promise.
Sustainability Classifications
The Sustainability Classifications Initiative assigns three classifications: Responsible, Sustainable and Sustainable Plus.
The classifications differentiate RIAA certified products based on their responsible investment approaches, claims, processes, stewardship programs and disclosures. They focus on the approach taken in considering ESG factors and the degree to which sustainability is addressed or targeted.
For a comprehensive definition and assessment methodology, see here.
1 Operational & Disclosure requirements
Meet strict operational and disclosure requirements and make publicly available specific details of their services as laid out under the respective category of the Certification Standard.
2 External accountability
Invite their members, clients and peers to hold them to account for their behaviours consistent with the Program Code of Conduct.
3 Quality and Threshold Tests
Quality: Is product information relevant and consistent? Threshold: Would a reasonable consumer expect the claims made by the product? Do the claims risk confusing or undermining the credibility of the collective industry or others’ Responsible Investment efforts and performance?
4 Promote the Standard
Promote the Responsible Investment Standard by incorporating the Certification Symbol into marketing and communications material in accordance with the Certification Symbol Licensee Agreement and the Licensee Marketing Kit and Style Guide.
5 Concerns & Grievances
Agree to participate in good faith in the Program’s Concerns & Grievance Policy and Procedures with a view to protecting the reputation of responsible investment peers, individual investors and/or the responsible investment industry as a whole.
6 RIAA Member
Hold current membership with the Responsible Investment Association Australasia.
7 Be current and legally trading AU/NZ
Be current and legally trading, operating / offered for investment in Australia and/or New Zealand.
Certification requirements are different for each certification category. A summary of the requirements per category is outlined below. View the details for each category in the Responsible Investment Standard.
Product
Eight requirements
Investment Management Service
All eight product requirements, plus an additional four.
Financial Adviser
Six requirements
Financial Advisory Group
Six requirements
The process
All new certifying products and services undergo the following 7 step process, although the certification process may vary between categories. For detailed information about different categories please email info@responsibleinvestment.org
1 —
Pre-certification checklist
Complete the Pre-Certification checklist (product only) and contact RIAA to ensure product or service eligibility.
2 —
Submit application
Complete and submit an online application form. Financial Advisers and Financial Adviser Groups by contacting The Membership Team.
3 —
RIAA assessment
RIAA Certification Team assesses application and makes recommendation to Certification Assessment Panel.
4 —
Certification Assessment Panel
Certification Assessment Panel examines, deliberates and determines outcome of application.
5 —
Independent Confirmation
Application data is verified by a member of RIAA’s Independent Verification Panel (IVP) (Products only).
6 —
Commit to updates & ongoing requirements
During the certification term (generally two years) updates and ongoing action may be required. Material changes may trigger early recertification.
7 —
Product Claims Spot Check
Submit to RIAA’s spot checks conducted by the RIAA Certification Team or a member of the IVP. (Products only)
Certification Program FAQs
Important information about the Responsible Investment Certification Program:
The Responsible Investment Certification Program is not designed for the purpose of providing personal financial product or investment advice. The Certification Program is designed to provide information solely on the responsible and ethical investment strategies that apply to each of the Certified investment products for information only.
The information provided by the Certification Program is not a recommendation to invest in any investment products. It does not take into account your particular investment objectives, financial situation or investment needs all of which should be considered prior to making an investment decision. You should seek professional financial advice before making any investment decision.
Have a concern about the Program?
Of greatest importance to the viability and ultimate success of the Program is the maintenance of its credibility and its value to consumers and retail investors. We therefore invite and welcome our stakeholders submitting to us their feedback and concerns about any issues related to the Program. Read the Program’s Concerns and Grievance Policy.