Media releases

The Responsible Investment Association Australasia (RIAA) will convene the Taskforce on Nature-related Financial Disclosures’ (TNFD) official Consultation Group for Australia and New Zealand, bringing together business, finance, public sector and civil society organisations to drive engagement in nature-related business and finance issues and the future adoption of the global TNFD framework. The TNFD was established in 2020 to develop and deliver an integrated risk management and disclosure framework for organisations to report and act on evolving nature-related risks, with the ultimate aim to support a shift in global financial flows away from nature-negative outcomes and toward nature-positive outcomes. Final recommendations from the Taskforce are due in September 2023. RIAA’s role will be to provide a central point to drive the consideration, input and uptake of TNFD in our markets, working with institutional members of the TNFD Forum. This will leverage the existing work RIAA is leading including through its very active Nature Working Group, and partnerships with the Australian Department of Agriculture, Water and the Environment.

The Responsible Investment Association Australasia (RIAA) has congratulated the incoming Government of Australia, and has called for the establishment of a national sustainable finance strategy which can unlock investment opportunities and underpin strong action on climate change and other key societal issues. “From climate change to housing affordability to gender equality, many of the issues the electorate has deemed important at this election mirror the big issues which investors are pushing for action on,” said RIAA CEO Simon O’Connor. RIAA is calling on the Government to establish a whole of government approach to embedding sustainability into the financial system, to underpin a strong and prosperous economy, to position Australian competitively and to help address local and global challenges.

The Responsible Investment Association Australasia (RIAA) is ramping up its operations and presence in Aotearoa New Zealand as the demand for ethical and sustainable finance products and providers reaches new heights. RIAA’s Executive Manager for Membership and Engagement, Dean Hegarty, has returned to New Zealand from Australia, with a deeper focus on supporting RIAA members across the country and growing the membership base. “From large asset owners to community foundations; from asset managers to financial advisers, we are the largest network of people and organisations engaged in sustainable finance, and already have an active base of over 80 investors in New Zealand committed to responsible investment and harnessing capital to help deliver improved social and environmental outcomes. This has grown 63% in the last 18 months alone, and the appetite and opportunity across the industry shows no signs of abating. “The desire to expand and deepen practice is common across our membership, as demonstrated by strong participation in events and our working groups covering issues as diverse as human rights, financial advice, nature, First Nations’ Peoples rights and impact management and measurement, along with the demand for certification.”

Three-quarters of New Zealanders expect their KiwiSaver and investment funds to be invested ethically, with the majority considering moving funds if their values and interests do not align. This is one of the key findings of the new consumer survey by the Responsible Investment Association Australasia (RIAA) and Mindful Money. From Values to Riches 2022: Charting consumer demand for responsible investing in Aotearoa New Zealand, undertaken by Dynata, highlights that investors are not only looking for their fund providers to do well – they are looking for funds that also do good. 62% of New Zealanders report it is important to them that their investment makes a positive difference in the world. Expectations are higher among women (80%) than men (63%) and are highest among young people aged 18-24 (78%) who believe responsible investments will outperform traditional funds over the long term. Simon O’Connor, CEO at RIAA said: “This survey shows that half the population are apprehensive that fund providers are greenwashing and making misleading claims, and are demanding that their providers can back up their claims. Consumers have awoken to the opportunity to invest in line with their values but are also much more attuned to cut through the spin to find products that deliver on the most important issues for them. Three-quarters of New Zealanders expect their KiwiSaver and investment funds to be invested ethically, with the majority considering moving funds if their values and interests do not align. This is one of the key findings of the new consumer survey by the Responsible Investment Association Australasia (RIAA) and Mindful Money. From Values to Riches 2022: Charting consumer demand for responsible investing in Aotearoa New Zealand, undertaken by Dynata, highlights that investors are not only looking for their fund providers to do well – they are looking for funds that also do good. 62% of New Zealanders report it is important to them that their investment makes a positive difference in the world. Expectations are higher among women (80%) than men (63%) and are highest among young people aged 18-24 (78%) who believe responsible investments will outperform traditional funds over the long term. Simon O’Connor, CEO at RIAA said: “This survey shows that half the population are apprehensive that fund providers are greenwashing and making misleading claims, and are demanding that their providers can back up their claims. Consumers have awoken to the opportunity to invest in line with their values but are also much more attuned to cut through the spin to find products that deliver on the most important issues for them. “More than half of the population (54%) would be more willing to invest ethically and responsibly if financial products were certified or labelled as responsible or ethical by an independent third party. With the barrage of new ethical investment products in the market, consumers are increasingly questioning sustainability claims made by investment managers. They’re looking to trusted third parties like RIAA’s Responsible Investment Certification Program to do the heavy lifting, to make sure they are delivering on their claims.”

Four in five Australians expect their money in super, banks and other investments to be invested responsibly and ethically, but financial service providers need to do a better job of meeting expectations, with 72% of the population saying they are concerned about greenwashing, according to a new consumer study from the Responsible Investment Association Australasia (RIAA). The study, From Values to Riches 2022: Charting consumer demand for responsible investing in Australia, finds that Australians are getting more serious about aligning their money with their morals, with three-quarters (74%) of Australians considering moving to another provider if they found out their current fund was investing in companies engaged in activities inconsistent with their values. At the same time, the appetite for ethical and responsible investments continues to grow, with the number of Australians already investing responsibly up 28% from 2020 (to 17% of the population). “Australians are demanding more transparency from their providers, with 75% wanting to know which companies their super fund, bank or other investments are invested in. They are attuned to the threat of greenwashing, and it is holding many people back, particularly when it comes to switching to an ‘ethical’ bank,” said Simon O’Connor, CEO of RIAA.

KPMG Australia and Responsible Investment Association Australasia (RIAA) are today launching Human rights and climate change: a guide for institutional investors, highlighting the devastating human rights impacts of climate change and the importance of institutional investors considering these impacts when addressing climate change risk in their portfolios. KPMG/RIAA research indicates that institutional investors are still prioritising environmental impacts over harm to people when addressing climate change risk in their portfolios. Despite increasing attention being paid to ESG, environmental and social risk assessments are often siloed, meaning that climate-related human rights impacts are inadequately addressed. The guide points out that this gap is a risk to institutional investor trustees that must be addressed as an urgent matter of prudent risk management. Richard Boele, Chief Purpose Officer, KPMG Australia, said: “COP26 reinforced that we are at a critical moment. Technological and regulatory shifts are urgently required to achieve decarbonisation and the transition towards a sustainable global economy. For the transition to be made in a way that minimises harm to people, human rights must be at the centre of the response”.

Super funds demonstrating leading practice responsible investment are taking a bigger share of the market and financially outperforming their peers, according to a new study from the Responsible Investment Association Australasia (RIAA). The study finds that one-quarter of super funds are demonstrating leading practice responsible investment, but these super funds hold 42% of total assets, compared with 28% in 2019. The study also shows that the majority (77%) of Australia’s largest super funds still have work to do in terms of transparency if they are to meet new legislative requirements to disclose their portfolio holdings publicly in 2022. The fourth edition of RIAA’s Responsible Investment Super Study 2021, sponsored by PIMCO, presents the results of a biennial survey of Australia’s largest super funds – accounting for $1.9 trillion in assets under management. The Super Study shows super funds that implement leading practice responsible investment continue to outperform their peers financially (87 basis points over 1 year and 56 over 7 years). The average performance of leading responsible investment super funds’ My Super products is better than non-leaders over 3-, 5- and 7-year timeframes.

Nuclear weapons production and the manufacture of nicotine alternatives will no longer be permitted in more than 200 investment products certified by the Responsible Investment Association Australasia (RIAA) following an update to the minimum requirements of its Responsible Investment Standard. RIAA’s Responsible Investment Standard – which informs investment-related legislation and policy, and underpins its pioneering Responsible Investment Certification Program – specifies that a responsible investment product must, at a minimum, avoid significant harm. This means investors must exclude producers of tobacco, manufacture of nicotine alternatives and tobacco-based products, controversial weapons and nuclear weapons from their portfolio. The addition of nuclear weapons to the minimum requirements of ‘avoiding significant harm’ is a result of a changing international norm, with the Treaty on the Prohibition of Nuclear Weapons entering into force in January 2021. As a result, investors seeking Responsible Investment Certification will no longer be able to invest in companies which derive revenue from the development, production and maintenance of nuclear weapons, effective 1 January 2022.

A number of large Australian investor and business groups have expressed serious concerns that the WA Aboriginal Cultural Heritage Bill 2021 tabled on Tuesday 16 November will fail to make a meaningful change in cultural heritage protection and is insufficient for protecting the invaluable cultural heritage of Australia’s First Nations people and our nation. The Dhawura Ngilan Business and Investor Initiative – led by the First Nations Heritage Protection Alliance in partnership with Global Compact Network Australia (GCNA), and the Responsible Investment Association Australasia (RIAA) – together with the Australian Council of Superannuation Investors (ACSI) – have expressed strong criticism with the Bill which passed the Lower House yesterday. “It is critical that any new heritage protection legislation takes on board the lessons learned from the tragic destruction of the Juukan Gorge, so that such harm doesn’t occur again. This Bill falls far short of providing that confidence,” said Cath Brokenborough, Executive Lead, First Nations engagement, Lendlease and Chair of the Dhawura Ngilan Business and Investor Initiative. “In the wake of Juukan Gorge, investors have stated unequivocally that businesses and legislators need to ensure comprehensive protection of cultural heritage. Upon review of this Bill, we remain concerned that this protection has not been sufficiently strengthened, and investors will continue to see Western Australia as having elevated risks of the type seen in the tragic destruction of Juukan Gorge” said RIAA CEO Simon O’Connor.

The Australian Government’s announcement that superannuation funds will be required to disclose their holdings from 31 March 2022 has been welcomed by the Responsible Investment Association Australasia (RIAA). Under the new regulations, super funds will be required to disclose information about the identity, value and weightings of their investments, with portfolio holdings disclosure to occur every six months thereafter. “RIAA is supportive of and welcomes the introduction of mandatory portfolio holdings disclosure for super funds. We have advocated for many years that portfolio holdings disclosure is a critical element of transparency and accountability for super fund members and beneficiaries,” said RIAA CEO Simon O’Connor. “Disappointingly though, super funds will not be required to disclose the holdings of funds that are managed externally. Given almost three-quarters of super funds use external managers for over 90% of their assets, we would have expected the requirements to include these underlying holdings.”