Media releases

The Responsible Investment Association Australasia (RIAA) and Mindful Money are pleased to launch the 2024 consumer report, Voices of Aotearoa: Demand for Ethical Investment in New Zealand. The study reveals that more Kiwis support responsible investing than ever before, showing a strong preference for aligning investments with personal values and long-term sustainability. Key findings include: • 77% of New Zealanders expect their investments to be managed ethically. 57% would consider switching to a different provider if their investments were in activities not consistent with their values. • More respondents expect ethical and responsible investments to perform better in the long term, increasing to 46%. • There is growing support for investing for positive impact. 54% would invest in a fund that aims to create positive impact if the returns are comparable to investment benchmarks while 20% would accept a lower return. • Positive views about responsible investment are more strongly held by Gen Z and Millennials, those with higher levels of education and those with higher levels of investment. • Over half of New Zealanders have concerns about greenwashing. 59% are more likely to choose ethical and responsible funds that have independent certification.

The Responsible Investment Association Australasia (RIAA) warmly welcomes the Australian Government’s Sustainable Finance Roadmap, which Treasurer Jim Chalmers has released today. RIAA has been calling for a national sustainable finance strategy for some years – this will enable Government agencies and the finance sector to successfully work together to deliver Australia’s urgent priorities, such as tackling climate change in line with the Paris Agreement and progressing the UN Sustainable Development Goals. The Roadmap brings together key pieces of the puzzle to shift capital towards sustainable practices, with a strong focus on climate change. A coordinated approach should line up Government agencies to leverage finance in areas such as climate change, energy, agriculture, nature, regional development, infrastructure and regulation. The Sustainable Finance Agenda provides clarity and direction in key areas for capital markets, and will help Government better leverage private capital to support critical Australian Government priorities.

The Responsible Investment Association Australasia (RIAA) welcomes the launch of the first consultation on Australia’s sustainable finance taxonomy. The consultation is seeking feedback on: • the draft headline ambitions for the Australian taxonomy’s environmental objectives; and • the proposed activities and draft substantive climate change mitigation criteria for the first three sectors to be developed under the taxonomy: 1. Electricity generation and storage. 2. Minerals, mining and metals. 3. The built environment. The process is being overseen by the Australian Sustainable Finance Institute (ASFI). Submissions are due by Sunday 30 June. RIAA Co-CEO Estelle Parker called on interested parties to make a submission and reflected on this milestone in Australia’s sustainable finance policy. “The industry has been working towards this for years, and a lot of work has gone into this draft. RIAA’s CEO co-chaired the Australian Sustainable Finance Roadmap, of which the taxonomy was a key recommendation,” said Estelle. “RIAA is proud to have established ASFI in 2021, which has brought together many great minds of sustainable finance to drive development of the taxonomy.”

The Responsible Investment Association Australasia (RIAA) applauds the Australian Government’s commitment to the development of sustainable finance. The 2024-2025 Federal Budget includes funding for: • the Australian Securities and Investments Commission (ASIC) and the Treasury for the development of a labelling regime for sustainability labels; • ASIC to investigate and respond to market participants engaging in greenwashing and other sustainability-related financial misconduct; • the Treasury, ASIC and the Australian Prudential Regulation Authority (APRA) to deliver the sustainable finance framework, including improving data; • the continued development of Australia’s sustainable finance taxonomy. RIAA Co-CEO Estelle Parker is pleased that the budget has recognised the importance and the urgency of developing Australia’s sustainable finance sector. “For too long, Australia was a late starter globally in recognising the opportunities provided by sustainability to all sectors, from primary industries, to manufacturing and workforce development. We must not miss out on the global capital flowing to invest in the transition to a low-carbon future – it won’t last forever.” Estelle emphasised the critical role of an internationally aligned financial product labelling regime, stating that it will help combat greenwashing and help shift capital towards funding the transition to a net-zero economy. “Our experience operating the Responsible Investment Certification Program, which is, to our knowledge, the world’s longest running responsible investment product labelling scheme, provides strong evidence for the value of a national product labelling scheme. Our internationally-aligned certification standard and rigorous application process have prompted numerous product issuers to significantly improve their product design, disclosures and marketing in order to gain certification. In fact, 70% of products seeking certification need to make changes before they can succeed. This in turn, improves the products provided to consumers and retail investors, and reduces the likelihood of greenwashing.”

The Responsible Investment Association of Australasia (RIAA) today launched a toolkit to help investors address the rapidly evolving human rights risks presented by Artificial Intelligence (AI). The Artificial Intelligence and Human Rights Investor Toolkit was created by RIAA’s Human Rights Working Group, drawn from RIAA’s membership base. Estelle Parker, Co-CEO at RIAA, said, “The potential benefits of AI are immense, but investors are increasingly aware of the risks posed by AI, especially when it is inadequately designed, inappropriately used or maliciously deployed. Not only does AI pose risks to individuals and their human rights, but there are also ethical and financial risks to companies and investors as this technology evolves.” The investor toolkit is comprehensive and is appropriate for people who may not have had much familiarity with the issue to date. It seeks to enhance the investment community’s understanding of the financial and human rights risks associated with AI. It outlines the issues, provides case studies, outlines methodologies for understanding risks, and details strategies for investor engagement.

15 of Australia’s most influential organisations representing business, finance and both retail and institutional investors and shareholders have come together to support the passage of Schedule 4 of the Federal Government’s Treasury Laws Amendment (Financial Market Infrastructure and Other Measures) Bill 2024 (Climate reporting Bill). Together, the group represent more than 900 companies, investors with over AU$80 trillion assets under management, 7.7 million retail shareholders and over 80,000 directors, senior executives, accountants and other business professionals. To maintain Australia’s place in the global economy, the group considers it’s essential there is a climate reporting framework that incentivises high quality, useful and internationally aligned climate-related disclosures.

Australians are increasingly demanding their superannuation funds and investments to be aligned with their values, according to the latest report by the Responsible Investment Association Australasia (RIAA), “From Values to Riches 2024: Charting consumer demand for responsible investing in Australia.” The biennial study reveals a significant shift in consumer sentiment towards responsible investing. Key findings include: • 88% of Australians expect their investments to be responsible and ethical, a demand that continues to grow from 83% in 2022. • 65% would invest more if their money actively contributed to a better world. • Greenwashing concerns are on the rise, with 78% of Australians expressing wariness, up from 72% in 2022. However, 79% would be more likely to invest in products verified as responsible by an independent source. “It’s fantastic to see Australians demanding more from their investments,” said Estelle Parker, Co-CEO at RIAA. “They want their money to work for them, deliver good returns, and also make a positive difference. Australians are increasingly concerned about greenwashing, and rightfully so. This highlights the need for robust verification processes. This study shows Australians are attuned to the important role independent verification plays in helping ensure investments truly align with responsible practices, allowing investors to make informed choices and contribute to a sustainable future.”

The MySuper products of super funds demonstrating leading responsible investment practice outperformed those of non-leaders on average in 2022, according to a new study released by the Responsible Investment Association Australasia (RIAA). The Responsible Investment Super Study 2023, supported by PIMCO, has named 10 Responsible Super Fund Leaders* out of the 53 assessed for the study. These funds commit to good governance and accountability; implement and measure responsible investment approaches through activities such as engagement and voting and ESG integration; regularly measure outcomes; and exhibit a high degree of transparency. Dr. Zsuzsa Banhalmi-Zakar, Research Manager at RIAA said, “Aussies that are choosing to align their super with their values are not losing out on returns, demonstrating that strong financial performance and investing ethically are not mutually exclusive.” The study also shows that legislation has reshaped the sector recently. The most significant change being the introduction of mandatory requirement for funds to disclose the assets they invest in (which came into effect in March 2022). As a result, 100% of super funds that were assessed for the study now disclose portfolio holdings, as opposed to 2021 when 62% published only their top 20 holdings or less.

The Responsible Investment Association Australasia (RIAA) is pleased to unveil the appointment of Co-CEOs, Estelle Parker and Dean Hegarty to take up the leadership of the organisation, marking an important step for RIAA with dual CEO representation in Australia and Aotearoa New Zealand. Following an extensive global search, the RIAA board proudly announces the promotion of two distinguished executives within RIAA, who will jointly take over as Co-CEOs upon the departure of current CEO, Simon O’Connor in early December 2023. Over the past three years, Estelle Parker and Dean Hegarty have demonstrated exceptional leadership in advancing a more responsible and sustainable financial system as Executive Managers at RIAA. Their leadership has been instrumental in RIAA’s growth and impact, placing the organisation in a robust position today. RIAA’s Chair, Ross Piper expressed, “The RIAA board is very pleased to announce the appointment of two proven and highly skilled executives as Co-CEOs. Estelle and Dean bring deep market knowledge, strong program delivery and commercial skills, as well as having demonstrated their leadership and expertise in responsible investment across our markets.”

The Responsible Investment Association Australasia (RIAA) strongly welcomes the Treasurer’s Sustainable Finance Strategy as a pivotal milestone, highlighting the significant role of investment labels in the responsible investment industry. The Strategy, with one of its priorities on developing a labelling system for investment products marketed as sustainable, marks a crucial step towards aligning the finance sector with Australia’s net-zero transition. The Treasurer’s consultation paper sets the stage for a remarkable transformation in Australia’s financial landscape by introducing a labelling system for investment products marketed as sustainable. RIAA underscores the critical impact of this development on the responsible investment sector, which has been a priority outlined in the Strategy. Simon O’Connor, CEO at RIAA, acknowledged the Sustainable Finance Agenda as a significant stride towards international alignment but stresses the urgency of Australia’s actions. “The government knows it has a rare opportunity to rapidly change the landscape of investment and finance through this Strategy. But let’s not kid ourselves, whilst we’re not starting from scratch, we are late to this important policy discussion and so must move fast and leverage existing industry efforts to play catch up,” said Simon.