2021 marked another significant year for Australia’s responsible investment sector.

Momentum from the unprecedented growth of the responsible investment market in 2020 continued despite economic volatility caused by the COVID-19 pandemic. Interest in responsible investment increased among the media, the public, regulators, and other stakeholders. While early headlines focused on record growth, attention later shifted to concerns about the quality of sustainability claims, or ‘greenwashing,’ and the role of regulators. In a landscape of heightened public interest and economic disruption, the sector continued to progress.

Australia’s responsible investment market reached a record $1.5 trillion in assets under management, representing 43% of total professionally managed funds. A total of 74 investment managers are considered Responsible Investment Leaders, including 17 for the first time. This indicates that more investment managers understand what it takes to demonstrate leading responsible investment practices and are implementing the necessary processes.