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 report also highlights a crucial disconnect between consumer expectations and available products. While animal cruelty is a top concern for Australians (66%) and 54% want to avoid animal testing in their investments, only 11% of investment assets are screened to avoid animal testing.
“What this research tells us is that Australians are more keen than ever to invest in line with their values, with three quarters of Australians who would consider changing providers if their current fund didn’t align,” said Australian Ethical Chief Customer Officer Maria Loyez.
“However, the discrepancy between Australians’ desire to invest ethically and the reality of where their money is invested is concerning. And this isn’t lost on consumers, with concerns about greenwashing holding back 78% of Australians, which as a planet we can little afford,” said Maria.
“The financial industry needs to listen closely,” emphasised Estelle. “There’s a clear market for responsible investment products, but consumers need to be confident their money is truly aligned with their values. Addressing greenwashing concerns and offering a wider range of responsible options is critical.”
The study further reveals growing public concern for human rights (89% want their banks and funds to commit to protection) and climate change (76% want commitments on net-zero emissions by 2050). Recent events have also played a role, with nearly half of Australians re-evaluating their investments due to potential links to human rights abuses or climate change.
Head of Socially Responsible Banking at Teachers Mutual Bank Limited Corin Millais said the trend in consumers seeking out ethical alternatives for their banking needs to continue to grow. He added, “The research showcases openness to investing ethically has skyrocketed as Australians are becoming more informed and engaged with responsible investing.”
“The industry needs to be louder with its messaging and demonstrate genuine commitment to responsible practices, because this is a powerful consumer trend that’s not going away,” Estelle added.
“ From Values to Riches 2024: Charting consumer demand for responsible investing in Australia”, supported by Australian Ethical and Teachers Mutual Bank Limited, gauges consumer awareness, practices, and attitudes towards ethical and responsible investments in Australia, and surveyed 2,003 Australians aged 18 and over in January 2024.
For further information, please contact Ada Tso Marketing & Communications Manager, RIAA, ada@responsibleinvestment.org, +61481308718
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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 report also highlights a crucial disconnect between consumer expectations and available products. While animal cruelty is a top concern for Australians (66%) and 54% want to avoid animal testing in their investments, only 11% of investment assets are screened to avoid animal testing.
“What this research tells us is that Australians are more keen than ever to invest in line with their values, with three quarters of Australians who would consider changing providers if their current fund didn’t align,” said Australian Ethical Chief Customer Officer Maria Loyez.
“However, the discrepancy between Australians’ desire to invest ethically and the reality of where their money is invested is concerning. And this isn’t lost on consumers, with concerns about greenwashing holding back 78% of Australians, which as a planet we can little afford,” said Maria.
“The financial industry needs to listen closely,” emphasised Estelle. “There’s a clear market for responsible investment products, but consumers need to be confident their money is truly aligned with their values. Addressing greenwashing concerns and offering a wider range of responsible options is critical.”
The study further reveals growing public concern for human rights (89% want their banks and funds to commit to protection) and climate change (76% want commitments on net-zero emissions by 2050). Recent events have also played a role, with nearly half of Australians re-evaluating their investments due to potential links to human rights abuses or climate change.
Head of Socially Responsible Banking at Teachers Mutual Bank Limited Corin Millais said the trend in consumers seeking out ethical alternatives for their banking needs to continue to grow. He added, “The research showcases openness to investing ethically has skyrocketed as Australians are becoming more informed and engaged with responsible investing.”
“The industry needs to be louder with its messaging and demonstrate genuine commitment to responsible practices, because this is a powerful consumer trend that’s not going away,” Estelle added.
“ From Values to Riches 2024: Charting consumer demand for responsible investing in Australia”, supported by Australian Ethical and Teachers Mutual Bank Limited, gauges consumer awareness, practices, and attitudes towards ethical and responsible investments in Australia, and surveyed 2,003 Australians aged 18 and over in January 2024.
For further information, please contact Ada Tso Marketing & Communications Manager, RIAA, ada@responsibleinvestment.org, +61481308718
