To gauge the size, breadth, depth, and performance of responsible investment in Australia, RIAA reviewed the practices of 183 investment managers, with 68 of those assessed directly via survey and supplementary desktop analysis undertaken across the research universe.

The commitment to and interest in this area of finance is evident from the number of investment managers that engaged with this research project. This year, a record number took part in the survey, allowing RIAA to draw more insights from the data than ever before.

This year, for the first time, RIAA canvassed superannuation funds to the extent that they directly manage investments. This acknowledges the growing trend for superannuation funds to bring investment management in-house.

To date, RIAA has classified responsible investment assets under management (AUM) as either ‘Core’ or ‘Broad’ to distinguish between those funds that are undertaking a screening, sustainability-themed, or impact investment approach (traditionally more aligned with ethical investment) and those that are committed to investing under a strategy that integrates environmental, social, and corporate governance (ESG) factors.

As responsible investing becomes more mainstream, RIAA expects to move away from these classifications and instead focus on best practices across the spectrum of RI strategies. For continuity purposes, the data is presented as Core and Broad in Appendix 1C.

This report details industry data on the size, growth, composition, and performance of the Australian RI market over the twelve months to 31 December 2018 and compares these results with the broader Australian financial market.