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Media Releases
Record $1.6 trillion committed to responsible investing, but greenwashing remains a major concern
19 November 2024
A Responsible Investment Association Australasia (RIAA) report shows responsible investment in Australia has reached a record $1.6 trillion, marking a significant shift in the investment landscape. However, greenwashing remains a critical concern, with over half (52%) of respondents identifying it as the top barrier to responsible investment, up from 45% in 2022.
The report highlights how the industry continues to gain momentum, with the number of responsible investors increasing by 26% and the proportion of responsible investment assets under management (AUM) rising from 36% to 41% of the market in 2023. This growth reflects a powerful shift towards mainstreaming responsible investment across the market.
Estelle Parker, Co-CEO of RIAA said, “This is a pivotal moment for the industry. Our data shows that 99% of respondents now integrate ESG principles into their framework, embedding responsible practices into the fabric of their operations. Concurrently, regulators are rightfully pushing for greater transparency, and the public wants proof that investment claims lead to real-world impact. Credibility in responsible investment depends on demonstrating measurable, impactful action, not just good intentions.”
Strong uplift in responsible investment leadership as investment managers respond to rising expectations
16 October 2024
The Responsible Investment Association Australasia (RIAA) is thrilled to announce 61 Responsible Investment Leaders and 29 Responsible Investors for 2024 in Australia, and 17 Responsible Investment Leaders and 7 Responsible Investors for 2024 in Aotearoa New Zealand, reflecting the ongoing momentum in responsible investing.
“It’s incredibly encouraging to see such strong progress, even after raising the standard last year,” said Estelle Parker, Co-CEO of RIAA. The past year has seen heightened regulator action and increased scrutiny of the sector. “The fact that more investment managers have met these higher expectations shows that organisations are embracing the challenge and lifting their game. There’s not only more of them doing it – they’re also getting better at it.”
The recognition is based on RIAA’s Responsible Investment Scorecard, which was refined last year to meet growing expectations of responsible investment leadership and covers the 2023 calendar year.
New toolkit guides investors on navigating nature-related risks and opportunities
19 September 2024
Ahead of a world-first Nature Positive Summit hosted by the Australian federal and New South Wales state governments next month, the Responsible Investment Association of Australasia (RIAA) today launched a toolkit to help investors assess and act on nature-related risks and opportunities in their portfolios. The Nature Investor Toolkit was created by RIAA’s Nature Working Group, drawn from RIAA’s membership base of super funds, KiwiSaver providers, investment managers, impact investors and others.
The aim of the toolkit is to educate investors on this complex and rapidly evolving area, help investors assess nature-related risks and opportunities, prepare investors to hold constructive conversations with investees about impacts and dependencies on nature, and build and communicate the business case for investing in nature positive solutions.
Estelle Parker, Co-CEO at RIAA, said “Investors are embracing the twin challenges of net zero and nature positive, but are aware that the size and scope of the tasks at hand require focus, clarity and understanding how to apply frameworks such as the Taskforce on Nature-related Financial Disclosures (TNFD), which can be leveraged to identify material risks and new and existing
opportunities in their portfolios.”
“This toolkit outlines practical steps and key resources to aid investors, as well as highlighting the importance of putting Indigenous Peoples and Local Communities at the centre of the discussion.”
Joint statement: Australia’s leading conservation and responsible investment bodies unite to call
for urgent action on nature laws
9 September 2024
Australia’s largest peak bodies representing private land conservation and responsible financial investment have teamed up to send a message to the Federal Parliament: now is the time to do a deal on Australia’s nature laws that delivers investment certainty and outcomes for nature.
Together, we welcome the report of the Senate Inquiry into the Government’s Nature Positive Bills and support the committee’s recommendation that the legislation be amended to allow for National Environmental Standards to be issued by the Government, and to ensure that the definition for ‘nature positive’ is consistent with international expectations.
The Responsible Investment Association Australia (RIAA) and the Australian Land Conservation Alliance (ALCA) recognise the importance of robust environmental law reforms for protecting Australia’s biodiversity, and the need to provide investor and project proponents with more certainty and consistency.
RIAA applauds new legislation for mandatory climate-related reporting in Australia
22 August 2024
The Responsible Investment Association Australasia (RIAA), representing 75% of managed funds in Australia, has warmly welcomed the passing of the legislation to enact mandatory reporting on climate by Australian businesses. RIAA has long campaigned for a mandatory climate-related disclosure regime in Australia.
Clear and comparable disclosure of climate-related financial information will help investors identify and understand the large-scale financial risks from the impacts of climate change and transition to net zero emissions. It will also encourage action to mitigate these risks.
By incentivising high quality, useful and internationally aligned climate-related disclosures, this Act will help maintain Australia’s place in the global economy.
NZ consumer report reveals strong demand for ethical investments, led by young Kiwis
30 July 2024
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.
RIAA welcomes Australia’s Sustainable Finance Roadmap
19 June 2024
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.
RIAA welcomes Australian Sustainable Finance Taxonomy consultation, announces member event
28 May 2024
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.”
RIAA welcomes funding for product labelling regime, urges collaborative action
15 May 2024
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.”
RIAA launches investor toolkit to provide guidance on AI and human rights risks
1 May 2024
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.
Organisations representing business, finance and both retail and institutional investors in Australia align to support climate-related disclosures bill passage
22 April 2024
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 demand more from their money: new report shows growing appetite for responsible investment
18 March 2024
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.”
Leading responsible investment super funds reap higher returns, reveals RIAA study
4 December 2023
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.
RIAA announces appointment of Co-CEOs to lead the organisation’s next chapter
23 November 2023
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.”
RIAA welcomes Australia’s Sustainable Finance Strategy, paving the way for responsible investment through investment labels
2 November 2023
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.
Investment industry heavyweights CFA Institute, GSIA and PRI announce harmonised definitions for responsible investment approaches
1 November 2023
NEW YORK CITY: CFA Institute, the Global Sustainable Investment Alliance (GSIA), and Principles for Responsible Investment (PRI) have issued a new resource that aims to bring greater understanding and consistency to terminology used in responsible investment, specifically:
• Screening
• ESG integration
• Thematic investing
• Stewardship
• Impact investing
For each term, CFA Institute, GSIA, and PRI have outlined a definition, detailed explanation, a list of definitions that served as the primary inputs, and guidance for using the terms in practice. The paper is intended for investors, regulators, policymakers, and other market participants.
The collaboration was inspired by calls from regulators for voluntary standard setters to develop common terms and definitions to ensure consistency throughout the global asset management and wealth management industries.
Promoting the consistent and precise use of terminology contributes to efforts to address greenwashing.
RIAA launches the Aotearoa Collaborative Working Group to advance responsible investing
24 October 2023
The Responsible Investment Association Australasia (RIAA) has taken a monumental step in advancing responsible investing in New Zealand by establishing the Aotearoa Collaborative Working Group.
As the landscape of responsible investment in New Zealand has rapidly evolved over the past three years, RIAA’s proactive approach continues to reshape the industry, as it establishes the Aotearoa working group to collaborate and share leading practices and knowledge.
With RIAA members now accounting for over 70% of the New Zealand market, and a substantial 64% of Kiwisaver funds invested in RIAA certified funds, the launch of the working group serves as a vital progression towards fostering a thriving economy, environment and society surrounding responsible investment.
New Zealand responsible funds surpass laggard funds
10 October 2023
Responsible investment funds in New Zealand have overtaken traditional funds for the first time, reaching a record $183 billion in 2022, while traditional investments dropped 9% to $169 billion, a new report by the Responsible Investment Association Australasia (RIAA) has revealed.
The Responsible Investment Benchmark Report Aotearoa New Zealand 2023, researched in collaboration with EY, shows the responsible investment market now makes up more than half (52%) of the total managed funds market in New Zealand.
Dean Hegarty, Executive Manager at RIAA said, “It’s only a few years since responsible investment was seen as a niche market. But the landscape has now turned on its head – today, funds not actively engaged in responsible investment are not just lagging; they’re stranded at the starting line of a race that’s already in full swing.”
Investors call on companies to rapidly adopt new nature reporting framework
19 September 2023
After two years of development, the Taskforce on Nature-related Financial Disclosures (TNFD) has released its final Framework, giving investors a commonly-accepted basis to compare companies’ nature-related risks. The Framework was unveiled at UN Climate Week in New York.
The Responsible Investment Association Australasia (RIAA) has warmly welcomed the release of the Framework, describing it as a “monumental moment” for the responsible investment sector, and has issued a challenge to Australian and New Zealand companies to join the inaugural cohort of TNFD adopters to be announced in January.
“As Convenor of the official Consultation Group for the TNFD in Australia and Aotearoa New Zealand, RIAA is excited to be working with all sectors to facilitate its uptake. This will be crucial to making better business and investment decisions that protect and restore, rather than destroy, nature,” said Estelle Parker, Executive Manager at RIAA.
Responsible Investment Benchmark Report Australia 2023
18 September 2023
New responsible investment report reveals, financial markets in Australia are embracing ESG and responsible investment, yet rapidly increasing standards risk some being left behind.
The 22nd annual Responsible Investment Benchmark Report released by the Responsible Investment Association Australasia (RIAA) has revealed that ESG considerations are now deeply embedded across investment markets in Australia.
Read the full press release to learn about the key findings of the report.
RIAA Conference Aotearoa NZ 2023
1 August 2023
The Responsible Investment Association Australasia (RIAA) will host the largest edition of its New Zealand conference yet, on 8 August at the Aotea Centre in Auckland, with over 350 leaders and practitioners from the sustainable finance industry due to attend.
The RIAA Conference Aotearoa NZ 2023 comes at a critical time in the fast-evolving field of responsible investment, as investment managers face heightened expectations from government, regulators and retail investors.
RIAA CEO to exit at end of 2023
29 June 2023
After serving as CEO of the Responsible Investment Association Australasia (RIAA) for over 10 years, Simon O’Connor has informed the RIAA board of his decision to transition out of the role, with his departure scheduled for the end of this year.
Ross Piper, Chair of the RIAA board expressed his appreciation for Simon’s remarkable contribution and acknowledged the timing is right for both the organisation and Simon personally to begin a leadership transition.
Voices of Aotearoa: Demand for Ethical Investment in New Zealand 2023
26 May 2023
Investors want to do well and do good
In the face of financial market turbulence, consumer demand for ethical investing not only remains resilient but continues to gain momentum. Consumers not only want to avoid investing in companies that cause harm, they are increasingly also looking to invest in KiwiSaver and investment funds that do good.
This is the fifth annual survey of the New Zealand public undertaken by Mindful Money and the Responsible Investment Association of Australasia (RIAA). The survey, conducted by market researcher, Dynata, provides valuable research, trends and insights for the finance sector and public audiences.
Read full press release for key findings of the survey.
RIAA welcomes budget boost on the eve of Australia’s biggest responsible investment conference
9 May 2023
On the eve of Australia’s biggest responsible investment conference, the Responsible Investment Association Australasia (RIAA) applauds the Government’s budget commitments to a sustainable finance agenda which will include:
– funding the development of a sustainable finance taxonomy,
– establishing an Australian Government green bond program, and
– supporting ASIC’s work to address greenwashing.
RIAA also welcomes the Government’s commitment to:
– funding for social impact investment, including a $100 million Outcomes Fund,
– funding to support a Nature Positive Plan,
– establishing an Anti-Slavery Commissioner to help fight modern slavery in Australia and abroad,
– a raft of other measures that will unlock opportunities for investors to contribute to national decarbonisation efforts.
RIAA’s Responsible Investment Australia 2023 conference on 10 & 11 May will dive deep into many of these major announcements.
Finance Sector urges Parliament to pass Safeguard Mechanism reform and take further action to support emissions reductions
7 March 2023
Leading Australian financial institutions and finance industry peak bodies have made a joint statement on the Australian Government’s proposed Safeguard Mechanism reforms.
As well as finance industry peak bodies ACSI, ASFI, IGCC and RIAA, the joint statement has been signed directly by institutional investors including Aware, Cbus, HESTA, First Sentier, IFM, Metrics, and Ethical Partners.
These organisations represent more than 500 investors, banks, insurance firms and financial service providers who collectively hold over USD$29 trillion assets under management.
The statement welcomes the Government’s proposal to reform the Safeguard Mechanism, while noting that the emissions reductions required under the Safeguard Mechanism are not yet aligned with the reductions needed to limit global warming to 1.5°.
Therefore, the Safeguard Mechanism should be a floor, not a ceiling, to facilities’ decarbonisation activities.
ISSB standards ‘consistent with existing requirements’ for company directors, legal opinion confirms
6 February 2023
Incoming international reporting standards will provide a helpful blueprint for directors as they discharge their duties, with a new legal opinion confirming that Australian company directors should already be focussing on financially material issues such as climate risk and other sustainability matters.
The opinion comes from one of Australia’s leading legal experts on financial climate risks, Sebastian Hartford-Davis, and Kellie Dyon of counsel. It builds on the landmark ‘Hutley Opinions’ by Mr Hartford-Davis and Noel Hutley SC, which confirmed that directors have a duty to consider and manage climate risk. MinterEllison acted as instructing solicitors on both the Hutley Opinions and the current brief.
The International Sustainability Standards Board (ISSB) draft standards, set to be finalised later this year, would require disclosure of material information about sustainability risks.
The legal advice, sought by a group on institutional investors – the Australian Council of Superannuation Investors (ACSI), Investor Group of Climate Change (IGCC) and the Responsible Investment Association Australasia (RIAA) – highlights that directors should not face increased liability risks under ISSB standards and should not need any kind of ‘safe harbour’.
Accelerating Sustainable Finance: Joint Industry Statement
12 December 2022
Demonstrating our collective willingness to work together to enable the finance sector to make a larger contribution to the climate, environment and social objectives of Australia, the organisations listed below issue this Joint Statement on Accelerating Sustainable Finance.
As leading Australian financial services firms, we recognise our critical role in shaping Australia’s future. Our activities – which include finance and investment, insurance, investor stewardship, client relationships and advice, stakeholder engagement, and policy engagement – can provide significant support for the transition to a net zero, climate resilient Australian economy, the regeneration of Australia’s natural capital, and a more prosperous and fair society.
We recognise the important role of strong partnerships between government, the private sector, and other stakeholders in achieving these goals. Private finance and investment alongside government funding is essential to accelerate progress, as is a supportive policy and regulatory environment.
We welcome the Treasurer’s announcements today of the Australian Government’s plans to drive sustainable finance in Australia.
Global collaboration on terminology announced
1 December 2022
The UN Principles for Responsible Investment, the Global Sustainable Investment Alliance and the CFA Institute have been working together over many years on joint programmes relating to ESG disclosure standards, definitions and understanding practices.
They are acutely aware of the increasing pressure on their members and signatories to clearly present approaches to ESG investment so that beneficiaries, regulators and other stakeholders are able to understand ESG approaches taken in investment products and strategies.
This public resource is intended to be used by the investment industry, regulators and policy makers with the objective of providing greater clarity and alignment in their usage in literature and across the industry.
New Zealand responsible investments grow to half the market and typically outperform traditional investments
18 October 2022
The portion of New Zealand assets managed using a rigorous, leading approach to responsible investment reached 49% totalling $179 billion in 2021, up from 43% in 2020, a new study by the Responsible Investment Association Australasia (RIAA) found.
The Responsible Investment Benchmark Report Aotearoa New Zealand 2022, researched in collaboration with EY, shows a step up in responsible investment activity. Investment managers are expanding their responsible investment offerings to investors across their portfolios, improving transparency and disclosures, ramping up their engagement with companies on sustainability issues, and increasingly excluding sectors deemed unethical.
The study also shows excellence in responsible investment typically materialises into superior financial returns. In 2021, products certified by RIAA as quality, true-to-label responsible investments on average outperformed benchmarks across all categories and almost all timeframes, while non-certified products labelled responsible investments stayed on par with benchmarks.
Australian responsible investment assets hit $1.54 trillion as investment managers agitate for ESG action
12 September 2022
The number of Australian assets managed using a rigorous, leading approach to responsible investment has hit a record value of $1.54 trillion, now accounting for 43% of the total market, according to a new study by the Responsible Investment Association Australasia (RIAA).
In addition, a record 45% of investment managers are holding companies to account on matters relating to environmental and social issues, and reporting back to investors on the outcomes achieved. This number has more than doubled in the past two years, with only 21% of investment managers engaging in such activity in 2019.
The findings come as part of the latest Responsible Investment Benchmark Report, researched in collaboration with EY. Responsible investment, also known as sustainable or ethical investment, is a broad-based approach to investing which factors in people, society and the environment, along with financial performance, when making and managing investments.
Recent high profile action from shareholders with companies such as AGL shows investors have significant influence in shaping their future direction and strategies on issues such as climate change.This year’s report found that this approach – also known as corporate engagement – saw the greatest increase out of any responsible investment strategy in 2021. Approximately $726 billion in assets under management is now being used by fund managers to agitate for change on ESG issues, up 54% from 2020.
The study also shows excellence in responsible investment materialises into substantial financial returns.Products certified under RIAA’s Responsible Investment Certification Program on average outperformed the market in the medium to long term, and over some time frames achieved two or three times the returns. This outperformance is seen both when comparing RIAA certified funds to the overall market, as well as to products of investment managers who self-declare as practising responsible investment.
Business, investor and conservation groups come together to support Climate Bill as key step towards policy certainty and investment
01 August 2022
A wide cross-section of business, investor and conservation groups have come together to support the passage of the Climate Change Bill as an important step towards the greater climate policy certainty needed to support investment in the transition to a low-carbon economy.
The lack of a settled national policy has consistently been cited as a key inhibitor to the effective management of climate change risk by investors, directors and other business leaders.
There is bipartisan and broad community and business support for achieving net zero emissions by 2050. The Government legislating a 2030 target of at least a 43 percent emissions reduction under the Paris Agreement establishes some much-needed policy certainty. Importantly the legislation includes a process for advice and adoption of deeper targets over time. It also provides clarity to investors and the business community more broadly, given all nations have committed under the Paris Agreement to only strengthen their stated contributions.
The group considers legislating a national 2030 emissions reduction target to be a timely signal to the market of the Government’s ambition, and further encouragement to Australian organisations to progress their own decarbonisation plans. Australian organisations need to remain internationally competitive to support our nation’s high living standards.
Major consensus reached on Australian climate risk reporting
01 August 2022
Twenty of Australia’s most influential business and finance peak bodies have come to an unprecedented consensus on the need for sustainability reporting including action on climate risk through a new reporting regime that aims to set a global baseline.
The group has welcomed the International Sustainability Standards Board (ISSB) draft sustainability standards in a joint submission which collectively represents the voice of 20 peak professional, industry and investor bodies in Australia who came together to prepare the joint response to the two exposure drafts.
The peak bodies together represent more than 400 companies, approximately 300 investors with US$33 trillion assets under management, and 500,000 business and finance professionals. The group considers clear, transparent, comprehensive and comparable disclosure of sustainability-related information to be part of the foundation of a well-functioning global financial system. The group supports a global approach to the development of sustainability disclosure standards and for the ISSB to be the global body to issue these standards.
The overarching goal should be a globally consistent, comparable, reliable, and verifiable corporate reporting system to provide all stakeholders with a clear and accurate picture of an organisation’s ability to create sustainable value over time
Poor State of Environment report casts stark warning to the finance sector
19 July 2022
Today’s dire State of the Environment report should raise alarm bells to the Australian business and finance sectors, as the nation moves into further debt to nature, with deteriorating indicators across most measures.
The health of Australia’s natural environment is becoming a material financial risk and proxy for the state of our economy, given the significant interdependencies between the two: from agricultural industries to resources, from tourism to property, right through to financing and insurance.
The 2021 State of the Environment report shows the past five years have seen an alarming rise in threatened species, land clearing, extreme weather events, and destruction of Indigenous heritage, and that environmental decline is damaging human health and wellbeing.
“For too long, nature has been relegated and seen as something out there beyond our cities, a place we visit only on holidays, or space that is preserved in our national parks,” said Estelle Parker, Executive Manager of Programs at the Responsible Investment Association Australasia (RIAA).
RIAA welcomes ASIC greenwashing guidance
14 June 2022
The Responsible Investment Association Australasia (RIAA) has welcomed ASIC’s greenwashing guidance, saying that it will help investment managers to raise the overall quality of sustainable finance products in Australia and to better meet consumer expectations.
ASIC’s new greenwashing information sheet provides clarification on the existing obligations and laws investors should comply with to avoid greenwashing, including what disclosures they should be making and how to avoid making misleading claims.
“Greenwashing poses a real threat to the future of sustainable finance. Our 2021 research shows that while the majority (89%) of the Australian investment market claims to be responsible, it is just 40% of managers that are engaged in leading practice responsible investing” said RIAA CEO Simon O’Connor.
“We welcome the focus on greenwashing by ASIC which reinforces that, by law, any investor making a sustainability claim must be able to substantiate this and provide supporting evidence. This guidance will be essential reading for investors and product issuers to understand how greenwashing is defined, the existing regulations they need to comply with and the questions to consider when marketing sustainability related products, such as if the product is true to label.”
RIAA partners with TNFD to drive engagement on nature risks
25 May 2022
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.
Australians have voted for a more sustainable future: our financial system holds the key
23 May 2022
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.
Sustainable finance ramps up in New Zealand
12 May 2022
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.”
Overwhelming demand for ethical investing despite concerns about greenwashing: new RIAA & Mindful Money study
28 April 2022
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.”
Aussies expect their money to be invested ethically but don’t trust green claims
9 March 2022
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.
Why climate risk is also a human rights risk: KPMG and RIAA launch new guide for institutional investors
9 December 2021
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 that invest responsibly bag greater market share, higher returns
2 December 2021
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 and nicotine alternatives a no-go zone for responsible investors
19 November 2021
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.
Investors say WA Aboriginal Cultural Heritage Bill won’t prevent another Juukan Gorge
18 November 2021
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.
RIAA welcomes superannuation fund portfolio holdings disclosure announcement with caveat
12 November 2021
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.”
Weak 2030 emissions target positions Australia as laggard in global economy
26 October 2021
The Australian Government’s announcement that the country will target net zero emissions by 2050 is welcomed, however its 2030 target remains insufficient for positioning Australia competitively into the future and achieving a sustainable and productive economy, the Responsible Investment Association Australasia (RIAA) has said.
The Government has announced that Australia will keep its commitment to reducing emissions 26-28% by 2030 (compared to 2005 levels).
“The announcement to target net zero emissions by 2050 aligns Australia with our key trading partners and is welcomed. However Australia’s near-term target of achieving emissions reductions of 26-28% by 2030 is not aligned with the Paris Agreement’s interim targets of 35-55% and is insufficient for readying the Australian economy for the transition needed,” said Nicolette Boele, RIAA’s Executive, Policy and Standards.
“Projections do not offer business and investor sufficient policy certainty. Australia’s projections of achieving 30-35% reductions by 2030 should be government policy, providing investors with more reliable parameters for better risk pricing and valuation.”
New guide launches for investors on protecting Indigenous cultural heritage
22 October 2021
Following this week’s release of the final report from the Senate inquiry into Rio Tinto’s destruction of Juukan Gorge, a new toolkit for the Australian and global investment community has been launched, detailing practical steps investors can take when considering and engaging with companies on Indigenous Peoples’ rights and cultural heritage protection.
An initiative of the Responsible Investment Association Australasia’s (RIAA’s) Human Rights Working Group, the Investor Toolkit: An Investor Focus on Indigenous Peoples’ Rights and Cultural Heritage Protection supports investors to manage the increasingly material issue of Indigenous heritage protection.
The toolkit was produced by leading experts from finance organisations such as abrdn (formally Aberdeen Standard Investments), HESTA, AustralianSuper and Refinitiv, and endorsed by Indigenous groups such as the First Nations Heritage Protection Alliance and National Native Title Council.
Landmark First Nations, business and investor initiative launches to improve cultural heritage protection in Australia
13 October 2021
A landmark business and investor initiative has been launched – bringing together First Nations, business and investor communities – focused on strengthening Australia’s First People’s heritage laws and standards for the private sector to uphold the human rights of First Peoples.
Led by the First Nations Heritage Protection Alliance in partnership with the Global Compact Network Australia (GCNA), and the Responsible Investment Association Australasia (RIAA), the Dhawura Ngilan Business and Investor Initiative sees protecting cultural heritage as the responsibility of all Australians, including the finance and business sectors.
The initiative is being launched as the Joint Standing Committee on Northern Australia prepares to report on its inquiry into the devastating destruction of Juukan Gorge on the traditional lands of the Puutu Kunti Kurrama and Pinikura (Binigura) peoples. This 2020 event marked a turning point in awareness of the value and importance of Country and cultural heritage for all Australians.
Responsible investment growth outpaces wider NZ market: RIAA Benchmark Report 2021
8 September 2021
The market for responsible investments in Aotearoa New Zealand has continued to soar in popularity to $142 billion in 2020, with responsible investment assets growing at more than twice the rate of overall professionally managed investments – the landmark annual study from the Responsible Investment Association Australasia (RIAA) has found.
The new RIAA report, researched in collaboration with KPMG, Responsible Investment Benchmark Report Aotearoa New Zealand 2021, shows that while the majority of the mainstream investment market claims to be responsibly invested, those funds engaging in leading practice responsible investment have seen an explosion in assets under management, increasing 28% to $142 billion in 2020 from $111 billion in 2019.
Additionally, the proportion of professionally managed funds now managed with leading practice responsible investment has grown to 43% in 2020.
“The proportion of New Zealand’s investment managers practising a leading approach to responsible investment nearly doubled in 2020, to comprise nearly half of investment managers purporting to engage in responsible investing,” said Nicolette Boele, Executive, Policy and Standards for RIAA.
“This trend suggests the quality of practice in New Zealand is pulling ahead of the Australian marketplace, where only a quarter of investment managers are engaging in leading practice responsible investment.
“Meanwhile we are seeing those investment managers with ineffective responsible investment policies and poor processes being left behind as the capital moves out”.
Money jumps ship to responsible funds – RIAA Benchmark Report 2021
1 September 2021
The market for responsible investments in Australia has continued to soar in popularity to $1.2 trillion in 2020, with responsible investment assets growing at 15 times the rate that overall Australian professionally managed investments have grown – the landmark annual study from the Responsible Investment Association Australasia (RIAA) has found.
The new RIAA report, researched in collaboration with KPMG, Responsible Investment Benchmark Report 2021 Australia, shows that the Australian responsible investment market reached new highs in 2020, increasing to $1,281 billion in 2020 from $983 billion in 2019.
Additionally, the proportion of responsible investment AUM to total managed funds grew from 31% to 40% in 2020, despite there only being a 2% increase in all professionally managed funds in Australia over the same period.
While the majority of the mainstream investment market claims to be responsibly invested, those funds engaging in leading practice responsible investment have seen an explosion in assets under management, growing 30% in 2020. This movement of capital has come at the expense of the remainder of the market, which has seen the value of assets shrink by 11% ($234 billion).
“Investment managers committed to responsible investment and leading practice are seeing money moving across into their funds, while those with ineffective policies and poor processes are being left behind as the capital moves out” said Nicolette Boele, Executive, Policy and Standards for RIAA.
“The message for investment managers is clear. It’s not good enough to simply claim you’re investing responsibly. If you’re not doing it well, then there’s a high risk of losing business.
‘S’ in ESG comes to fore in ESG research in Australia
7 May 2021
Modern slavery and human rights showed increased dominance in environmental, social and governance (ESG) research aimed at informing and driving more responsible investment in Australia over the last year, following the far-reaching local and global impacts of COVID-19.
At the 11th Annual ESG Research Australia Awards held today at the RI Australia 2021 conference from the Responsible Investment Association Australasia (RIAA), Citi, Bank of America Merrill Lynch and Credit Suisse took out awards for excellence in ESG research by a broker. An additional award from RIAA was also presented to the Australasian Centre for Corporate Responsibility for new ESG research by a non-broker.
The winners of this year’s ESG Research Australia Awards are:
- Best Piece of New ESG Research:
Nothing to lose but chains – A modern take on slavery for investors, by Zoe Whitton and Edward McKinnon, Citi
• Best Piece of Ongoing ESG Research:
CEO incentives and analyst expectations, by Sameer Chopra et al., Bank of America Merrill Lynch
• Best ESG Broking Firm: Credit Suisse
The winner of RIAA’s ESG Research Award recognising excellence in investor relevant ESG research by a non-broking firm is:
- Best Piece of Investor Relevant ESG Research (non-broking firm):
Labour Hire & Contracting Across the ASX100, by Dr Katie Hepworth, Australasian Centre for Corporate Responsibility
Key to New Zealand’s future prosperity: RIAA welcomes Sustainable Finance Forum Roadmap
3 November 2020
The Responsible Investment Association Australasia (RIAA) has welcomed the Sustainable Finance Forum’s Roadmap Action Plan launched today in New Zealand.
“The financial sector has a central role to play in contributing to New Zealand’s long term social, environmental and economic wellbeing and prosperity. This Roadmap lays the foundation for ensuringfinance plays its part in delivering a sustainable, net-zero economy” said Simon O’Connor, CEO of the Responsible Investment Association Australasia (RIAA).
“Once implemented, this Plan will position New Zealand as a global leader in sustainable finance, and build the resilience of its capital markets into the future”.
“We welcome the recommendation that definitions of sustainable finance products be further standardised, acknowledging the need for consumers to have confidence that products are delivering on claims and are true to label.”
“In particular, we welcome the specific recommendation that RIAA’s long running Responsible Investment Certification Program play a key role as a requirement for all default KiwiSaver providers, as well as for other investors making responsible investment claims. The importance of such assurance was underscored in our consumer research launched last week that showed that 82% of New Zealand consumers would be more likely to invest in a product certified by a third party.”
Consumers on the money with ethical investing
29 October 2020
As New Zealand prepares to release its sustainable finance roadmap, new research shows that more than three-quarters (78%) of New Zealanders with KiwiSaver or other investments believe that ethical or responsible investments perform better in the long term.
The new study, conducted by Dynata for Mindful Money and the Responsible Investment Association Australasia (RIAA), highlights the significant consumer demand for responsible and ethical investment, as the industry continues to grow in its size and influence.
The study finds that savings could be boosted if people see a positive social or environmental benefit from their investments. Nearly two-thirds of New Zealanders would be motivated to save and invest more money if they knew their savings and investments made a positive difference in the world.
“We are seeing overwhelming support from consumers for their hard-earned money to achieve positive outcomes and to avoid causing harm” said RIAA CEO Simon O’Connor. “In an important signal to New Zealand’s KiwiSaver, banking and wealth management sectors, 58% of New Zealanders would consider switching their KiwiSaver or other investments to another provider if their current fund engaged in activities inconsistent with their values.”
“Demand for ethical investing remains strong through the COVID pandemic” says Mindful Money’s founder and CEO, Barry Coates. “Over 90% of those who do not perceive to currently have an ethical investment fund are intending to invest ethically, most of them within the next year. This is evidence of strong growth in the consumer movement.”
RIAA welcomes New Zealand announcement on mandatory disclosure of climate risk
15 September 2020
The Responsible Investment Association Australasia (RIAA) has welcomed the New Zealand Government’s announcement today that it will require the business and finance sector to report on climate risks.
“This marks a significant step forward and demonstrates New Zealand’s exemplary leadership on the global issue of climate change and the sustainability of New Zealand’s financial system and economy” said RIAA CEO Simon O’Connor.
“This requirement makes a pivotal contribution to New Zealand’s comprehensive engagement on climate change and help New Zealand to deliver upon its commitment to the Paris agreement. Once implemented, investors will be better able to price and value companies within the portfolios they manage, as well as realign portfolios to contribute to a lower carbon world.”
“New Zealand’s future resilience and prosperity depends on being able to navigate climate change risk. It is now the expectation that our finance and corporate sectors deliver positive social and environmental outcomes, and they need to be able to measure and report on these over time.”
Companies that do good are striking a chord with NZ investors: new RIAA report
15 September 2020
Companies which look after their employees, minimise their impact on the environment, have good governance and protect human rights across supply chains have become a key focus for New Zealand investors, the landmark annual study from the Responsible Investment Association Australasia (RIAA) has found.
The new RIAA report undertaken in collaboration with KPMG, the Responsible Investment Benchmark Report 2020 New Zealand, shows that the vast majority (94%) of New Zealand investors now have a commitment to responsible or ethical investing. However just over half (52%) can demonstrate a leading approach that is contributing to real world outcomes.
Responsible investors in New Zealand have shifted their focus from screening out harmful industries such as tobacco and armaments, to considering broader environmental, social and corporate governance (ESG) factors when investing, as well as making impact investments which aim to deliver positive outcomes for society and the environment said Simon O’Connor, RIAA CEO.
Responsible and ethical investors reap greater rewards, with COVID no exception
8 September 2020
Companies which look after their employees, minimise their impact on the environment, have good governance and protect human rights across supply chains are more likely to deliver superior financial returns to investors, the landmark annual study from the Responsible Investment Association Australasia (RIAA) has found.
The new RIAA report researched in collaboration with KPMG, the Responsible Investment Benchmark Report 2020 Australia, shows that in 2019, Australian and multi-sector responsible investment funds outperformed mainstream funds over 1, 3, 5 and 10 year time horizons. Further analysis shows the outperformance has continued amidst the major market disruption brought on by COVID-19.
“The COVID-19 pandemic has resulted in significant economic turmoil, severely impacting many people’s livelihoods and financial markets globally. However it’s become clear that responsible investors are ahead of the game. They are identifying the key themes influencing markets and returns, which helps them to better navigate turbulent times, avoid the biggest risks and capture more opportunities” said Simon O’Connor, RIAA CEO.
RIAA welcomes HESTA’s announcement to go net zero across portfolio by 2050
26 June 2020
The Responsible Investment Association Australasia (RIAA) has welcomed today’s announcement that industry fund HESTA has committed to reducing the absolute carbon emissions in its investment portfolio by 33% by 2030 and being ‘net zero’ by 2050.
“HESTA is the one of the first large Australian superannuation funds to make carbon reduction commitments of this scale across its entire portfolio, in line with the Paris Agreement on climate change.” said Simon O’Connor, RIAA CEO.
“We welcome HESTA’s exemplary leadership. HESTA has read the tea leaves on the enormous risks that inaction on climate change poses to our economy and member returns.
“HESTA’s announcement reflects the increasing momentum within financial services companies in Australia for insurers, banks and super funds to commit to aligning their business with the Paris Agreement. We hope other large Australian super funds committed to responsible investment will swiftly follow suit.
“Increasingly we are seeing super funds step up to play an important role in delivering on critical agreements like the Paris Agreement in a manner that is aligned with their member expectations and is consistent with the direction our regulators are heading regarding climate risk guidance.
Australian market for impact investments triples and is set for further growth: RIAA study
2 June 2020
The market for impact investing – investments that deliver positive social or environmental impact alongside a financial return – is experiencing exponential growth in Australia, more than tripling over the past two years from $5.7 billion to $19.9 billion, finds a new study launched today by the Responsible Investment Association Australasia (RIAA).
The study, conducted for RIAA by Deakin University Business School, reveals the burgeoning appetite for impact investing, with Australian investors – from super funds to family offices – indicating they’d like to increase their allocation towards impact investments more than fivefold to $100 billion over the next five years, and invest in clean energy, housing, health and wellbeing, education and conservation, among other themes.
“As evidence mounts that companies with better records on social issues, environmental sustainability and good governance are more resilient to COVID market turbulence, this study shows a market delivering strong financial returns, while also positively impacting the lives of tens of thousands of people, such as through employment pathways, education, and health services, as well as benefiting our environment” said Simon O’Connor, CEO of RIAA.
Environment and climate change remain top focus of ESG research in Australia
23 April 2020
Topical issues of plastics and water scarcity, along with continued strong interest in climate change are among the key issues being researched within the finance industry to inform and drive more responsible investment in Australia.
At the 10th Annual ESG Research Australia Awards, Citi, Macquarie and Credit Suisse took out awards for excellence in ESG research by a broker. An additional award from the Responsible Investment Association Australasia (RIAA) was also presented to Ausbil Investment Management and the Australian Council of Superannuation Investors for new ESG research by a non-broker.
COVID-19 presents the greatest of challenges to investors, and early signs are that many responsible investment funds and companies are holding up better than their peers. Investors rely on robust and rigorous ESG research and data to help navigate turbulent times, which is why RIAA is pleased to recognise the leaders in this important research.
The ESG RA Awards, attended by Australia’s leading superannuation funds, fund managers and broking firms, recognise excellence in environmental, social and governance (ESG) research published by broking firms.
The winners of this year’s ESG Research Australia Awards are:
- Best Piece of New ESG Research:
2 degree or not 2 degree: The ins and outs of scenario analysis in real life, by Zoe Whitton and Edward McKinnon, Citi
• Best Piece of Ongoing ESG Research:
Macquarie’s 2019 ESG Ratings Survey, by Anita Stanley and Linda Carlanita, Macquarie
• Best ESG Broking Firm: Credit Suisse
The winner of RIAA’s ESG Research Award recognising excellence in investor relevant ESG research by a non-broking firm is:
• Best Piece of Investor Relevant ESG Research (non-broking firm):
Modern Slavery Reporting – guide for investors, by Mans Carlsson-Sweeny, Ausbil Investment Management and Kate Griffiths and Ian McIlwraith, Australian Council of Superannuation Investors. The Guide was an initiative of ACSI and RIAA’s Human Rights Working Group.
Australians’ demand for ethical investing at all time high following bushfires – new research
25 March 2020
Recent extreme weather events in Australia have led the nation to pay closer attention to where its money is being invested, with 86% of Australians expecting their savings and super to be invested responsibly and ethically, according to new research commissioned by the Responsible Investment Association Australasia (RIAA).
The study, finds that in the wake of the devastating bushfires, 3 in 4 Australians would consider moving their banking and superannuation to an alternative provider that invests responsibly and ethically, and that environmental issues (80%) are of greatest concern when investing their money.
“This consumer sentiment mirrors the continuing growth of the sector with nearly half ($980 billion) of Australia’s assets under management now being invested through responsible investing” said RIAA CEO Simon O’Connor.
RIAA welcomes NZ Government announcement that KiwiSaver Default funds will be required to exclude fossil fuels and embed RI
2 March 2020
In a world first, welcomed by RIAA, the NZ Government will require default pension funds to exclude investments in fossil fuel producers.
The Responsible Investment Association Australasia (RIAA) welcomes the announcement by the NZ government that will see the New Zealand pension system take strong steps to ensure New Zealanders auto-enrolled in a default KiwiSaver funds will not be invested in companies producing fossil fuels in addition to other strong mandated requirements for responsible investment commitments, starting June 2021.
This announcement comes at a time when there is increased recognition that the financial services sector must play a strong role in supporting the transition to a low carbon world, with ever greater numbers of investors setting in place 2050 emissions reductions targets, in line with global goals under the Paris Agreement.
This is a world first whereby default pensions will be mandated under law to exclude fossil fuels from portfolios, aligning with New Zealand’s strong commitments to take action under the Paris Agreement. Simon O’Connor, CEO of RIAA said: “RIAA welcomes this strong announcement by the NZ Ministers for Finance and Commerce and Consumer Affairs that will embed responsible investment into default KiwiSaver funds, consistent with RIAA’s own calls made in our submission to this review process.”
“This announcement recognises that investors who have strong commitments to a responsible investment including tackling climate change risks in their portfolios deliver better client outcomes.“
Super funds that invest responsibly outperform peers – new RIAA study
6 December 2019
Australian super funds that comprehensively engage in responsible investment are outperforming their peers over one, three and five-year time frames, a new report from the Responsible Investment Association Australasia (RIAA) has found.
The report also shows that in the face of rising public concern and increasing financial materiality of climate change, the consideration of climate risk by super fund boards continues to grow, but there remains room for improvement.
This third edition of the Responsible Investment Super Study 2019 presents the results of an annual survey of Australia’s 57 largest superannuation fundsi – accounting for $1.75 trillion in assets under management.
“This year’s report shows that Australia’s largest superannuation funds – including industry, retail, corporate and public sector funds – are ramping up their engagement in responsible investing to drive superior financial performance, reduce risk, and deliver better outcomes for their members and beneficiaries,” said Simon O’Connor, CEO of RIAA.
81% of Australia’s largest super funds are committed to responsible investment (up from 70% in 2016), and 72% report annually on responsible investment activity (up from 44% in 2016), highlighting how responsible investing is increasingly being embedded within Australian investment markets.
Investors launch best-practice guide to combatting modern slavery
11 October 2019
Investors have collaborated to produce a best-practice guide to reporting under Australia’s Modern Slavery Act.
Developed by the Australian Council of Superannuation Investors (ACSI) and Responsible Investment Association Australasia (RIAA), the best-practice guide builds on the Australian Government’s guidance.
The new Act has requirements for organisations in reporting the risks of modern slavery in their operations and supply chains. The ACSI/RIAA guide provides information for investors on how to incorporate investments into their modern slavery reporting and meaningfully address modern slavery risks.
ACSI CEO Louise Davidson said the new guide was developed to help investors report under the Act.
“Modern Slavery is likely to exist in the operations or supply chains of most businesses. Beyond the devastating human impact, poor management of human rights impacts upon the commercial success, stability and longevity of investments,” she said.
“ACSI and RIAA have collaborated to ensure investors have a clear path on how to tackle these issues and promote sustainability in their operations and supply chains. We encourage investors and companies to report within the spirit of the new law and work to develop their capacity to identify, manage, address and remediate modern slavery risks and impacts.”
“It will take time and global effort to address modern slavery. Effective reporting will help to drive global awareness and ultimately improvement in practices. Investors are well placed to lead the change.” She said.
RIAA CEO Simon O’Connor said the guide has been designed to help investors lead with action in respecting human rights and tackling modern slavery.
Leap in consumer demand for ethical investing: 2 in 3 Kiwis prepared to switch funds
30 October 2019
More than 8 in 10 New Zealanders (83%) expect their KiwiSaver or other investments to be invested responsibly and ethically, new research commissioned by the Responsible Investment Association Australasia (RIAA) and Mindful Money has revealed. This compares with 7 in 10 New Zealanders (72%) in 2018.
In an important signal to New Zealand’s KiwiSaver, banking and wealth management sectors,
2 in 3 New Zealanders would consider switching their KiwiSaver or other investments to another provider if their current fund engaged in activities inconsistent with their values.
The NZ-wide polling, conducted by Colmar-Brunton in September, shows consumer demand for responsible and ethical investment is on the rise, as the responsible investment industry continues to grow in size and influence.
“The rising consumer sentiment around ethical investing is reflected by the continuing growth in the responsible investment sector in NZ” said RIAA’s CEO Simon O’Connor. “The challenge lies with fund managers to develop and provide consumers with suitable products which match their interests, concerns and values.”
Mindful Money’s founder and CEO, Barry Coates said “The survey shows that New Zealanders want to avoid investing in companies that do not reflect their values – human rights violations and labour rights abuses top the list. Now, for the first time, investors can see where their funds are invested by using the Fund Checker on Mindful Money’s website.”
Strong appetite for investments that deliver social and environmental impact
23 September 2019
Impact investing is set to grow exponentially in Aotearoa New Zealand over coming years with strong interest from all types of investors including those not yet active in the field, according to a landmark study launched today.
99 investors – accounting for more than $83.5 billion of New Zealand’s assets under management – participated in New Zealand’s inaugural impact investment survey conducted by the Responsible Investment Association Australasia (RIAA) in partnership with The University of Auckland.
Respondents included investors already active in impact investing as well as those not yet active in the field, and comprised investment managers, impact investment fund managers, trusts, foundations, not for profit organisations, individuals, family offices and diversified financial institutions.
Impact Investor Insights Aotearoa New Zealand 2019, sponsored by AMP Capital, reveals that investors anticipate allocating a total of $5.9 billion to impact investing in the medium term. This would represent a six-fold increase in the capital currently deployed in impact investments, with $889 million of respondents’ capital currently earmarked as impact investments.
“This Report makes an important contribution to understanding how the demand for impact investing is shaping in New Zealand. It provides new insights into investors’ awareness and interest in impact investing, as well as the future prospects and challenges facing the growing field,” said Simon O’Connor, RIAA CEO.
Annual survey shows responsible investment dominates in NZ
9 July 2019
Responsible investing has emerged as a fundamental practice for New Zealand’s funds managers, and now accounts for more than 70 percent of total assets under management (AUM), according to the latest Benchmark Report issued by the Responsible Investment Association of Australasia (RIAA).
The fifth annual NZ RIAA Benchmark Report, released today by RIAA Chief Executive Simon O’Connor, shows a deepening commitment and more diverse range of offerings by asset managers, confirming responsible investing is now the bedrock of good investing.
With data compiled by KPMG, the Report shows the sector grew three percent to reach $NZ188 billion in 2018. This represents a threefold increase on the NZ$58 billion invested in responsible funds only five years ago, at the end of 2013.
Assets managed in accordance with responsible environmental, social and governance (ESG)_ principles now represent 72 percent of New Zealand’s total NZ$261.4 billion in AUM. By comparison, responsible investment funds in Australia represent just 44% of total AUM, according to RIAA’s latest Australian Benchmark Report released last week.
“Over the last year, we’ve seen responsible investment practices continue to mature as the focus shifts beyond avoiding investing in the most harmful industries, to seeking out investments that contribute positively to New Zealand communities and the planet, alongside delivering better financial outcomes,” Mr O’Connor said.
Strong returns for Australian investors in responsible & ethical funds
3 July 2019
Responsible investment funds are continuing to outperform most mainstream Australian and international funds, according to the latest Benchmark Report issued by the Responsible Investment Association of Australasia (RIAA).
With data compiled by KPMG, the 18th annual RIAA Benchmark Report highlights that investors in responsible funds are reaping financial rewards with higher than average returns across one, five and 10 year horizons.
“The findings of our report refute any misconception that investing responsibly comes at a cost in terms of performance, and contributes to the mounting body of evidence showing that responsible and ethical investing leads to better investment outcomes, alongside benefiting people and the planet,” said RIAA Chief Executive Simon O’Connor.
Australia’s responsible investment (RI) market continued to grow in 2018, with $980 billion in assets under management, a rise of 13% on the previous year.
Social Impact Investment Taskforce welcomed
4 April 2019
The Responsible Investment Association Australasia (RIAA) has welcomed the Government’s 2019-20 budget announcement of $5 million for the establishment of a Social Impact Investment Taskforce.
“Government has a critical role to play in the development of the market for impact investment and we welcome this announcement of a Taskforce to develop a strategy for Government’s future engagement” said Simon O’Connor, CEO of RIAA.
“RIAA’s Benchmarking Impact report showed that the market for impact investing quadrupled between 2015 and 2017. With nearly $6 billion of capital now being put to work to deliver a better society and environment through impact investing, we are now getting an insight into the potential of capital markets as a force to be harnessed for achieving a more prosperous and sustainable Australia.
Australia & New Zealand lead globally in uptake of responsible investment
2 April 2019
The Australasian region is leading globally in the uptake of responsible investing, with 63% of total assets under management in Australia and New Zealand using a responsible investment approach.
The Global Sustainable Investment Alliance (GSIA) has released its biennial Global Sustainable Investment Review 2018, showing that global responsible investment assets reached US$30.7 trillion at the start of 2018, a 34% increase from 2016.
In its fourth edition, the biennial Global Sustainable Investment Review brings together the results from regional market studies by the responsible investment forums of Europe, the US, Japan, Canada, Australia & New Zealand. It also includes data on the African responsible investing market and highlights from several countries in North, Central and South America.
“It is pleasing to see the continuing growth of responsible investment, both in our region and globally” said Simon O’Connor, CEO of the Responsible Investment Association Australasia.
Financial sector leaders join forces to steer Australian economy through ‘critical decade’: Australian Sustainable Finance Initiative launches
27 March 2019
The leaders and senior executives of Australia’s major banks, superannuation funds, insurance companies, financial sector peak bodies, civil society and academia are coming together to set out a roadmap for realigning the finance sector to support greater social, environmental and economic outcomes for the country.
The Australian Sustainable Finance Initiative has today been unveiled – an unprecedented collaboration to help shape an Australian economy that prioritises human wellbeing, social equity and environmental protection, while underpinning financial system stability, in what it says is a ‘critical decade’ ahead.
Modelled on international best practice already seen in groups including the European Union’s High-Level Expert Group on Sustainable Finance and the UK’s Green Finance Taskforce, the Australian Sustainable Finance Initiative will be guided by a Steering Committee charged with developing a set of recommendations to enable the finance sector to contribute more systematically to the transition to a more resilient and sustainable economy.
IAG Group Executive Jacki Johnson, co-Chair of the Initiative, said: “The roadmap we create will include pathways, policy signals and frameworks that will better enable the financial services sector to contribute to delivering on international commitments, such as the Paris Agreement on Climate Change and the UN Sustainable Development Goals, while underpinning economic stability and prosperity for Australia.”
Royal Commission: Now is the time to transform our industry for the better
4 February 2019
The Responsible Investment Association Australasia (RIAA) has welcomed the final report of the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry, saying it is a clarion call for the finance sector in Australia to reflect upon its purpose and do more to service and benefit the Australian community.
“The Royal Commission has revealed widespread incidences of illegal behaviour, misconduct and unethical practices across the financial services sector. These have devastated the lives of many Australians, and highlighted diverse failings of our sector”, said Simon O’Connor, CEO of RIAA.
“This is a watershed moment for the finance sector. The industry and entities involved must reflect and remedy these wrongs, and address the gaps spanning leadership, culture and systems. From this stronger base, we can transform our industry for the better and start to align capital markets with achieving a healthy and sustainable society, environment and economy for all Australians.
“From banks to super funds, financial advisers, and insurance companies, we must work collectively to restore the trust of Australians. By concertedly placing consumer interest at the centre of the financial services sector, we can start on this path back to regaining people’s confidence.
“Acting in the best interests of clients means knowing our clients first, their financial needs, their life stage, goals and, importantly, their personal values. Only through this can we deliver on community expectations and ensure finance is acting in the best interests of clients, as was a core tenet of the terms of reference for this Royal Commission.”
Consumer research conducted by RIAA shows that 9 in 10 Australians expect their money to be managed with consideration of their personal values and ethics, alongside their financial interests. This includes consideration of the social and environmental impact of their investments, whether it be avoiding investments that contribute to human rights violations and animal cruelty, or supporting investments that deliver improved healthcare, education and renewable energy.
“Australians are concerned about fees and performance, but are also increasingly wanting to know how their investments and savings are working to improve the world they will retire into.
“With Commissioner Hayne’s final report, the real work must now start, to rebuild community trust in the finance industry, to improve the culture within the sector, and to truly deliver services and outcomes that Australians expect from finance.
“As we emerge from the Royal Commission, the finance industry is recognising the connectivity between contributing to a better society and environment, and achieving strong financial performance for Australians.
“Now, more than ever, the finance sector must commit to and deliver upon a responsible and ethical approach to finance.”
Climate change top of list for ESG research in Australia
31 October 2018
Executive pay and climate change are among the key issues being researched and valued within the finance industry to inform and drive more responsible investment in Australia.
At the 9th Annual ESG Research Australia Awards held at the RI Australia 2018 conference in Melbourne tonight, Citi and Bank of America Merrill Lynchtook out the awards for excellence in ESG research by a broker. A new award from RIAA was also jointly presented to MSCI and the Centre for Policy Development for new ESG research by a non-broker.
The ESG RA Awards, attended by Australia’s leading superannuation funds, fund managers and broking firms, recognise excellence in environmental, social and governance (ESG) research published by broking firms.
The winners of this year’s ESG Research Australia Awards are:
- Best Piece of New ESG Research by an Individual Analyst or Team:
Bigger, Badder and more Opaque: The Task ahead for Investors Undertaking 2 Degree Scenario Analysis, by Zoe Whitton and Edward McKinnon, Citi
- Best Piece of Ongoing ESG Research by an Individual Analyst or Team:
CEO Incentives and Analyst Expectations for ASX100 Companies, by Sameer Chopra et al, Bank of America Merrill Lynch
- Best ESG Broking Firm:
Citi
The 2018 joint-winners for RIAA’s new ESG Research Award – recognising excellence in investor relevant ESG research by a non-broking firm are:
- Best Piece of Investor Relevant ESG Research (non-broking firm):
Climate Horizons Report: Scenarios and Strategies for Managing Climate Riskby Sam Hurley and Kate Mackenzie, Centre for Policy Development (with input from ClimateWorks Australia)
AND
Alignment to climate regulatory scenarios: A case study of Australian companiesby Brendan Baker and Morgan Ellis, MSCI ESG Research
New Consumer Survey shows that responsibility has become the new norm
18 September 2018
A large majority of New Zealanders expect their Kiwisaver and investment funds to be invested ethically and are ready to shift their funds if company prac>ces are inconsistent with their values.
A new Responsible Investment Associa>on and Mindful Money consumer survey undertaken by Colmar Brunton has been released today revealing New Zealanders care deeply about how their savings are invested. The research was conducted online with 1,000 research panel members. The data has been weighted to ensure it is representative of the New Zealand population in terms of age, gender and regional spread. The maximum margin of error associated with this survey is ±3.1%.
It shows that people expect managers of their Kiwisavers and other investments to consider issues important to them, as well as delivering strong financial outcomes. The survey shows concern over a much deeper range of issues beyond just tobacco and controversial weapons when it comes to where their funds are invested.
New Report: Responsible Investments Hit Major Milestone, Representing Vast Majority of all New Zealand Investments
16 August 2018
Responsible investment in New Zealand has hit a major milestone, with a new report finding the vast majority of professionally managed investments are now invested as responsible investments, with total assets under management having more than doubled in just two years.
Environmental, social, corporate governance and ethics considerations now sit alongside financial as critical components informing the investment decisions of the majority of New Zealand’s professional investors.
The 4thannual New ZealandResponsible Investment Benchmark Report 2018 (KPMG), the most comprehensive review of the sector,reveals the industry hitting new heights with $183.4 billion now managed as responsible investments, up from $131.3 billion in 2016 and $79 billion in 2015.
“The single most significant driver of growth in responsible investment is coming from the demand and desire from clients to align investments to their values – which we can track to the 2016 revelations of many KiwiSaver funds being invested in weapons and tobacco,” said Simon O’Connor, CEO of Responsible Investment Association Australasia (RIAA). “In that short amount of time, we have seen nearly the entire investment industry move to put in place a responsible investment approach, from 2.5% of the industry two years ago.
Responsible Investments hit Major Milestone, Tipping to Over Half of all Australian Investments: New Report
9 August 2018
Responsible investment in Australia has hit a major milestone, with a new report finding over half of all professionally managed investments in Australia are now invested as responsible investments. Environmental, social, corporate governance and ethics considerations now sit alongside financial as critical components informing the investment decisions of the majority of Australia’s professional investors.
The 17th annual Australian Responsible Investment Benchmark Report 2018 (KPMG), the most comprehensive review of the responsible investment sector in Australia, reveals the industry hitting new heights with $866 billion now managed as responsible investments, representing 55 per cent of all professionally managed assets in Australia, up from $622 billion in 2016 (growth of 39% year on year).
“This is a major milestone to reach with a majority of funds invested in Australia now being invested under commitments to responsible investment,” said Simon O’Connor, CEO of RIAA. “We are now at a stage whereby issues such as climate change, human rights, corporate culture, diversity and a whole range of other important sustainability issues are right at the forefront of consideration by Australia’s finance community.”
Australian impact investments quadruple: new report
19 July 2018
Investments that deliver positive social and environmental impact alongside a financial return are on the rise, with the market for impact investing quadrupling between 2015 and 2017, reveals a new report launched today by the Responsible Investment Association Australasia (RIAA) in partnership with the Centre for Social Impact (CSI) at Swinburne University.
Benchmarking Impact: Australian Impact Investment Activity and Performance Report 2018 presents the findings from analysis of impact investment activity and performance for a data-set of 51 Australian impact investment products active at 31 December 2017, with a total product value of $5.8 billion (up from $1.2 billion at 30 June 2015).
“The report reveals a diverse market delivering positive financial returns for investors while also benefiting the environment and impacting the lives of tens of thousands of people through employment pathways, education, and health services among other activities” said Simon O’Connor, CEO of RIAA.
“With nearly $6 billion of capital now being put to work to deliver a better society and environment through impact investing, we are now getting an insight into the potential of capital markets as a force to be harnessed for achieving a more prosperous and sustainable Australia.”
Aussie super funds take up the gauntlet to improve company behaviour
30 May 2018
Australia’s largest superannuation funds are ramping up their engagement in responsible investing to drive superior financial performance, reduce risk, and better meet their members’ and beneficiaries’ expectations, a new report from the Responsible Investment Association Australasia (RIAA) has found.
From backing shareholder resolutions demanding company disclosure on climate risk to divesting from companies with poor governance or engaged in unethical activity, Australian super funds are increasingly flexing their muscle to influence better company behaviour.
RIAA’s Super Fund Responsible Investment Benchmark Report 2018 finds that 81% of Australia’s largest super funds are committed to responsible investment (up from 70% in 2016), and 62% report annually on activity, highlighting how deeply responsible investing has become part of Australian investment markets.
The Super Fund Responsible Investment Benchmark Report 2018 presents the results of a survey of Australia’s 53 largest superannuation funds1 – accounting for $1.4 trillion in assets under management.
Responsible investment key to meeting member needs & better performance: PC superannuation report
29 May 2018
The Responsible Investment Association Australasia (RIAA) has welcomed the Productivity Commission’s draft report Superannuation: Assessing Efficiency and Competitiveness highlighting the importance and benefits of Australia’s superannuation capital being invested responsibly to create the Australia its members want to live in and leave behind.
“We agree wholeheartedly with the Productivity Commission’s report that our superannuation system needs to work for all Australians, meeting the needs of members and retirees, and delivering high performance,” said RIAA CEO Simon O’Connor.
“Responsible investment provides a critical vehicle for Australia’s superannuation industry to optimise financial returns for its members. Environmental, social, corporate governance and ethical factors have become critical considerations in investment practice, increasingly impacting upon valuations and investment returns.
“Responsible investment funds are outperforming their average mainstream counterparts year on year, as the market for responsible investment continues to grow in Australia.
RIAA’s 2017 Responsible Investment Benchmark Report shows ‘core’ responsibly invested Australian share funds and balanced multi-sector funds have outperformed their equivalent mainstream funds over 3, 5 and 10-year horizons. Beyond RIAA’s own research, these findings have now been supported by academic and industry research from across the world’s most esteemed universities and institutions.
“The bulk of evidence now clearly concludes that to ignore environmental, social, corporate governance and ethical issues blinds investors to some of the key investment risks that are increasingly determining performance of investment outcomes,” said O’Connor.
Consumer demand for ethical investment growing
15 November 2017
9 in 10 Australians expect their superannuation or other investments to be invested responsibly and ethically, new research commissioned by the Responsible Investment Association Australasia (RIAA) has revealed.
In an important signal to Australia’s superannuation, banking and wealth management sectors, 4 in 5 Australians would consider switching their super or other investments to another provider if their current fund engaged in activities inconsistent with their values, and just over half will consider making ethical or responsible investments in the next 1 to 5 years.
The Australia-wide polling, conducted by Lonergan Research and launched today at RIAA’s Responsible Investment Australia 2017 conference in Sydney, shows consumer demand for responsible and ethical investment is on the rise, as the responsible investment industry continues to grow in size and influence.
NZ embraces responsible investing with record growth in 2016
2 August 2017
Investment funds in New Zealand have shifted towards responsible investing in droves over the past year, with negatively screened funds growing by over 2500% and reaching a total of $42.7 billion in 2016.
Following the large controversy around KiwiSaver funds in August 2016, there has been a massive increase in the use of negative screens to avoid investments in tobacco and controversial weapons, the latest Responsible Investment Benchmark Report 2017 has found.
Launched today by the Responsible Investment Association Australasia (RIAA), the Report shows ‘Core’ responsible investments – made up primarily of screened funds – jumped from $1.6 billion in 2015 to $42.7 billion at the end of 2016. This jump is primarily due to the introduction of negative screening of multiple issues by the majority of New Zealand’s KiwiSaver providers.
Australian Responsible Investments Outperforming Mainstream Investments: New Report
25 July 2017
Responsible investment funds are outperforming their average mainstream counterparts year on year, as the market for responsible investment continues to grow in Australia, the latest Responsible Investment Benchmark Report 2017 has found.
Launched today by the Responsible Investment Association Australasia (RIAA), the report shows ‘core’ responsibly invested Australian share funds and balanced multi-sector funds have outperformed their equivalent mainstream funds over three, five and 10-year horizons.
“It is a long out-dated myth that financial returns must be sacrificed to invest responsibly or ethically. The performance figures and trends we are now seeing each year are telling us the opposite story,” said Simon O’Connor, CEO of RIAA…
Global Investors representing $12 trillion condemn Trump decision
2 June 2017
London June 1 2017: The Global Sustainable Investment Alliance, the collaboration of leading national sustainable investment bodies from Europe, the US, the UK, the Netherlands and Australasia, has expressed strong disappointment in the US Government’s decision to withdraw from the Paris Climate Change Agreement.
The GSIA – representing $12 trillion of assets managed, banked or advised globally – has condemned the decision which comes at a critical moment when global capital is moving to play their part in financing the transition towards a low carbon economy.
The GSIA urges the Administration to reconsider the decision and join with the other 195 nations who are committed to tackling climate change through the Paris Agreement.
Impact investing primed for growth in Australia & NZ – new Impact Investment Forum
18 May 2017
A new initiative, the Impact Investment Forum, has been launched today to support development of the growing impact investment market in Australia and New Zealand.
The Responsible Investment Association Australasia (RIAA) has established the forum as demand and interest grows in impact investing across all sectors, including with government, philanthropy and the superannuation industry.
Impact investing seeks to achieve measurable social or environmental impact alongside financial returns. RIAA’s Impact Investment Forum will act as a dedicated hub to connect and deepen the participation of organisations and individuals in this growing field.
The forum will build on the foundational work of the Australian Advisory Board on Impact Investing and Impact Investing Australia to catalyse the market for impact investing. It will receive assets Impact Investing Australia has incubated, including the Impact Investor Survey and Benchmarking Report on impact investment activity and performance.
As the market enters its next phase of development, RIAA’s Impact Investment Forum will take forward these critical pieces to develop market based data and practice. Together with other market based initiatives, this will complement the ongoing work of the Australian Advisory Board on Impact Investing and the initiatives Impact Investing Australia continues to drive, including Impact Capital Australia and the Impact Investment Ready Growth Grants.
“RIAA’s mission is to see more capital being invested more responsibly. Through the Impact Investment Forum, we want to develop and amplify the significant work done by Impact Investing Australia, and help take impact investing to scale,” said RIAA CEO Simon O’Connor.
From climate change to workplace safety research, winners of 8th Annual ESG Research Australia Awards announced
9 May 2017
Retail supply chain management, workplace safety, gender diversity on boards, farming and antibiotic use, and climate change are among the key issues being researched by broking firms in Australia to inform responsible investment strategies.
At the 8th Annual ESG Research Australia Awards held in Sydney today, Citi and Credit Suisse took out the awards for excellence in ESG research.
The Awards, attended by Australia’s leading superannuation funds, fund managers and broking firms, recognise excellence in environmental, social and governance (ESG) research with three awards, including best new ESG research, best ongoing research and best ESG broking firm.
30 pieces of ESG research conducted during 2016 were nominated from seven broking firms, including Bank of America Merrill Lynch (BAML), Citi, CLSA, Credit Suisse, Deutsche Bank, JP Morgan and Macquarie Bank. Nominations were assessed by the ESG RA Research Evaluation Committee, comprising superannuation funds and fund managers.
The winners of this year’s ESG Research Australia Awards are:
- Best Piece of New ESG Research by an Individual Analyst or Team:
Get Inside the Carbon Black Box, Look Down the Carbon Value Chain by Sandra McCullagh and Zoe Whitton, Credit Suisse - Best Piece of Ongoing ESG Research by an Individual Analyst or Team:
Safety Spotlight: ASX100 Companies & More by Elaine Prior and Joel Quintal, Citi - Best ESG Broking Firm: Citi
GLOBAL SUSTAINABLE INVESTMENT ALLIANCE RELEASES BIENNIAL GLOBAL SUSTAINABLE INVESTMENT REVIEW 2016
27 March 2017
WASHINGTON, D.C., March 27, 2017 – Today the Global Sustainable Investment Alliance (GSIA) released its biennial Global Sustainable Investment Review 2016, showing that global sustainable investment assets reached $22.89 trillion at the start of 2016, a 25% increase from 2014.
The Global Sustainable Investment Review brings together the results from regional market studies by the sustainable investment forums from Europe, the United States, Canada, and Australia and New Zealand. Market information on Japan was provided by JSIF—Japan Sustainable Investment Forum; data on Asia ex Japan was provided by the Principles for Responsible Investment. GSIA leaders Flavia Micilotta, Executive Director of Eurosif: The European Sustainable Investment Forum; Lisa Woll, CEO of US SIF: The Forum for Sustainable and Responsible Investment; Meg Voorhes, Research Director at US SIF: The Forum for Sustainable and Responsible Investment; and Simon O’Connor, CEO of Responsible Investment Association Australasia (RIAA), hosted a media web conference on Monday, March 27th at 11:00 a.m. ET to discuss report findings.
NEW RESPONSIBLE INVESTING BENCHMARK OF LARGEST 50 SUPERFUNDS LAUNCHED
24 November 2016
A new superfund benchmarking report launched at RIAA’s Responsible Investment Conference in Melbourne today has found that over two-thirds of the largest superfunds in Australia now have embedded a commitment to responsible investment, highlighting just how deeply the move to invest with a responsible approach has become a part of Australian investment markets.
The inaugural Superfund Responsible Investment Benchmarking Report (the Report) involved a detailed assessment and survey of the largest 50 superfunds1 in Australia – a universe that accounts for around $1.3 trillion of assets under management.
CONSUMER POLLING: THE CLEAR MAJORITY OF NEW ZEALANDERS EXPECT MORE THAN JUST FINANCIAL RETURNS FROM THEIR KIWISAVER INVESTMENTS
15 November 2016
Consumer polling released today highlights just how strongly New Zealanders believe their KiwiSaver providers should consider environmental, social and ethical factors as a part of delivering good investment products and financial returns.
A clear majority of respondents (81%) believe that it is important that KiwiSaver funds consider environmental, social and/or ethical factors providing a loud and clear signal to the industry that New Zealanders expect that their retirement savings are invested in a responsible manner.
Launched today at the New Zealand Responsible Investment Conference in Auckland, the polling very clearly highlights that New Zealanders don’t see this as a choice between financial considerations or personal values, but that both should be part of good investment practice.
MORE MONEY GOING TO, AND BEING EARNED FROM, RESPONSIBLE INVESTING
27 July 2016
A significant sum of New Zealand’s capital is now being invested responsibly – totalling $NZ 78.7 billion – with early signs showing consumer demand is increasingly following this rise that has resulted in billions shifting from mainstream to responsible funds.
The new report launched today by the Responsible Investment Association Australasia (RIAA), shows this strong up take of responsible investment, from the largest institutions through to boutique funds and KiwiSaver products, is not only benefiting New Zealanders by underpinning strong investment strategies that deliver strong returns, but also contributing to a better environmental and social outlook for New Zealand.
MORE MONEY GOING TO, AND BEING EARNED FROM, RESPONSIBLE INVESTING
13 July 2016
Nearly half (47%) of Australia’s investments are now being invested responsibly – totalling $633 billion – with a significant step up in consumer demand cementing this rise that has resulted in billions shifting from mainstream to responsible funds.
The new report launched today by the Responsible Investment Association Australasia (RIAA), shows it’s not only consumers who are benefiting, but financial advisers, superannuation funds, fund managers and banks who are leading the way in delivering great products with great returns, whilst creating a better environmental and social outlook for Australia.
“In observing the significant and consistent growth in responsible investment we can say without a doubt that this isn’t just a passing trend, but an evolution of the entire sector that is now being driven strongly by consumer demand and engagement with where they invest and bank their life savings,” said Simon O’Connor Chief Executive of RIAA.
“Years of demonstrated long-term investment benefits to investors, who consider environmental, social and governance (ESG) factors, have quietly shifted around half of Australia’s investment industry to invest responsibly. Now, it is consumer demand targeted at superannuation funds, banks and financial advisers that is creating unstoppable momentum with implications for all parts of the finance sector,” said O’Connor
Seventh Annual ESG RA Awards held today in Melbourne
17 May 2016
The Seventh Annual ESG Research Australia (ESG RA) Awards function was held today in Melbourne. The award winners were:
- Best ESG Broking Firm: Citi
- Best piece of new ESG Research by an Individual Analyst or Team: “Risks in Payday Lending andGoods Rental” by Sandra McCullagh and Chris Parks of Credit Suisse
- Best Piece of Ongoing ESG Research by an Individual Analyst or Team: “Australian ESG/SRI AGM Series” by Sandra McCullagh and Chris Parks of Credit Suisse
At a luncheon function today in Melbourne attended by some of Australia’s leading superannuation funds, fund managers and broking firms, the coveted annual ESG Research Australia (ESG RA) Awards were announced.
ESG RA is an association of Australian superannuation funds, fund managers and asset consultants which has the single objective of increasing the quantity and quality of broker research in Australia that includes consideration of ESG issues (Environmental, social & governance issues). Membership currently represents over 50 institutions managing over $100 billion in Australian equities, and includes some of Australia’s largest superannuation funds, fund managers and asset consultants.
The awards ceremony also included an experienced panel showcasing and debating many of the very relevant issues raised by this broad array of research reports produced in 2015. The panel was expertly moderated by the Responsible Investment Association Australasia’s CEO Simon O’Connor.
Twenty-two pieces of research conducted during 2015 were nominated by members for consideration. Environmental and social research pieces dominated the nominated topics for this year’s awards with six nominations each.
Social issues included cyber security, employee safety, and payday lending, whilst climate change issues dominated the environmental nominations. Governance issues were also well represented with executive remuneration the dominant area of interest.
RIAA’s Responsible Investment Certification Program re-launches and welcomes its first ever Certification of whole superannuation funds
29 February 2016
Responding to the surging consumer interest in responsible and ethical investments, RIAA is today announcing the re-launch of its Responsible Investment Certification Program – a tool designed to help consumers and financial advisers navigate towards the growing range of responsible investment options.
RIAA’s Certification Program has been in place for 10 years and in recent months was revised and strengthened with a focus on the internal governance, program requirements, criteria and verification processes.
“With the recent work we have done on the Certification Program, we are now very excited to be bringing this to market at a time when it couldn’t be more important to provide clear, verified and transparent information about the rapidly growing range of responsible investment products.” said RIAA CEO Simon O’Connor.
New Zealand Responsible Investment on the Rise Again to Over $63 billion
14 August 2015
Responsible investment assets in New Zealand continue their strong growth reaching $63.5 billion following a 10% increase in 2014.
Launched today, the new report from the Responsible Investment Association Australasia (RIAA), the most comprehensive review of the responsible investment sector in New Zealand (now in its 14th year, but the first year as a stand alone NZ report), found more money is being invested under responsible investment portfolios through superannuation funds, fund managers, advisers and kiwisaver accounts to underpin strong investment returns, and deliver a healthier environment and society.
RI on the Rise Again to 50% of Investment Industry
11 August 2015
Responsible investment assets form an ever greater portion of the country’s investment industry reaching $630 billion of assets and showing no signs of slowing down.
The new report from the Responsible Investment Association Australasia (RIAA), the most comprehensive review of the responsible investment sector in Australia (now in its 14th year), found more money is being directed into responsible investment portfolios by superannuation funds, fund managers and advisers to underpin strong investment returns, and deliver a healthier environment and society.
Global Responsible Investment Surges by 61% in 2 years to $21.4 Trillion
24 February 2015
The global sustainable investment market has grown substantially in both absolute and relative terms, according to The Global Sustainable Investment Review 2014, a report released today by the Global Sustainable Investment Alliance (GSIA).
RI Academy Welcomed Into The PRI
9 September 2014
The world’s leading responsible investment education business, the Responsible Investment Academy, will move to a new home with the Principles for Responsible Investment, enhancing the RI Academy’s global reach across the investment and finance community.
New report: Responsible investments growing, outperforming and giving investors what they want
23 July 2014
Australia’s most comprehensive report into the responsible investment sector has found the market is undergoing a period of huge growth, with total funds under management in Australia and New Zealand in broad responsible investments increasing by 13% to $153billion.
RI Academy Partnership with Canada and India
13 February 2014
The RI Academy is pleased to announce the launch of new partnerships in Canada and India working with the Responsible Investment Association of Canada (RIA) and the Responsible Investment Research Association of India (RIRA).
Most Australians want their super invested responsibly
28 November 2014
Most Australians (54%) would rather invest in a responsible super fund than a super fund which only considers maximising financial returns (46%), according to a national poll released today by RIAA.
RIAA Releases 2013 Responsible Investment Benchmark Report
11 July 2013
Whilst investment returns have strengthened to levels last seen before the Global Financial Crisis, responsible investment funds have surged even higher, outperforming both the benchmark and the average of mainstream funds over short and long term, in both Australian and international equities, according to the 2013 Responsible Investment Benchmark Report released today.
RI Academy Releases New Course
24 April 2013
The RI Academy today announces the launch of its first advanced course, Enhanced Financial Analysis, to help investors improve the practice of integrating these environmental, social and governance (ESG) factors into fundamental investment analysis and stock valuation.
GSIA Releases First International Report on Sustainable Investing Landscape
29 January 2013
The Global Sustainable Investment Alliance (GSIA) today released a report on the size and trends within the sustainable investment industry which finds that globally at least US$ 13.6 trillion worth of professionally managed assets incorporate environmental, social and governance (ESG) concerns into their investment selection and management.
Simon O’Connor Steps In As New RIAA CEO
21 January 2013
The Responsible Investment Association Australasia (RIAA) is pleased to announce the appointment of Simon O’Connor as its new Chief Executive. Mr O’Connor’s appointment follows Louise O’Halloran stepping down at the end of 2012 after more than a decade leading the growth of responsible investment in Australia.
RIAA Executive Director Steps Down
17 August 2013
After 11 years at the helm of the Responsible Investment Association Australasia, Executive Director Louise O’Halloran has decided to step down to take a break from executive duties.
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