Why has RIAA established a product/service Certification Program?
RIAA’s Certification Program navigates retail investors in Australia and Aotearoa New Zealand to true-to-label investment options that align with their values, and helps to prevent greenwashing in the market.
All investments have an impact on people and the planet, both positive and negative. Responsible investment, also known as ethical or sustainable investing, is a broad-based approach to investing that factors in people, society and the environment, alongside financial performance, when making and managing investments.
RIAA’s program for product and services certification assesses financial products and services for adherence to the Responsible Investment Standard. The Responsible Investment Standard – and accompanying Guidance Notes – codifies processes and practices for funds aiming to invest responsibly. Products and services that carry the Certification Symbol have been verified to be fit-for-purpose in line with this aim.
The Program was established 18+ years ago in the absence of a regulated sustainable finance labelling regime with the aim of building investor awareness of the benefits of responsible investment, and confidence that certified products and services will support investor needs and expectations. As standards of responsible investment practice are driven upward, a race to the top ensues, enabling the fulfillment of RIAA’s mission to align capital with achieving a healthy and sustainable society, environment and economy.
What does the Program consider to be the right approach to Responsible Investment?
The Certification Program is inclusive of all approaches to Responsible Investing. At a minimum, the Program requires products to demonstrate ESG Integration and Stewardship. Its Avoid Significant Harm criteria may be fulfilled through negative screening or by product design. Products using terms such as ‘sustainable’ or ‘impact’ in their labels are expected to utilise one or more of Positive/Best-in-Class Screening, Thematic Investing and Impact Investing approaches. In this way, while the Program does not prescribe one ‘right’ approach to Responsible Investment, it standardises expectations for varying product types to demonstrate that they are true to label.
What is the difference between RIAA’s Certification Symbol and the Responsible Investor / Responsible Investment Leader insignia?
RIAA’s Certification Program assesses financial products/services and financial advisers; RIAA’s Responsible Investor Leader and Responsible Superfund Leader assessments focus on organisations.
RIAA certified products are verified to have met assessment criteria through the RIAA Certification Program based on the Responsible Investment Standard and Guidance Notes. RIAA’s rigorous product-level assessment and independent verification are key differentiators of certification.
Responsible Investment Leaders are investment managers that achieve a score of 15 out of 20 or above on RIAA’s Responsible Investment Scorecard, as captured and assessed via survey and desktop research for the annual Australia Responsible Investment Benchmark Report. These organisation-level scores are based on publicly available information, rather than verified assessment.
Being a Responsible Investment Leader recognises an investment manager’s whole-of-organisation attributes.
In contrast, RIAA’s Responsible Investment Certification Symbol is used to differentiate quality, true to label responsible investment products which meet the Australian and NZ standard for responsible investing.
How does RIAA determine what product/service types to certify?
RIAA certifies financial products/services that can adhere to the Responsible Investment Standard. In some cases, Guidance and Assessment Notes are used for certain product types (e.g. Banking) to ensure that the scope of certification continues to represent an uplift in standards for Responsible Investment for the specific product type or industry in line with the Responsible Investment Standard.
Why does the Program not certify cash funds?
RIAA certifies cash deposit and cash equivalent banking products with environmental and social objectives. These product types have opportunities to support environmental and social lending practices over which the Responsible Investment Standard can be applied.
By certifying cash deposit and cash equivalent banking products, responsible lending standards of practice are tested with a view to lifting standards in the banking industry.
RIAA does not certify cash assets held by institutional investors. The Responsible Investment Standard cannot be effectively applied over cash funds of this nature due to the fact that unless invested or spent, cash has no material effect on environment or society.
Why has RIAA established a product/service Certification Program?
RIAA’s Certification Program navigates retail investors in Australia and Aotearoa New Zealand to true-to-label investment options that align with their values, and helps to prevent greenwashing in the market.
All investments have an impact on people and the planet, both positive and negative. Responsible investment, also known as ethical or sustainable investing, is a broad-based approach to investing that factors in people, society and the environment, alongside financial performance, when making and managing investments.
RIAA’s program for product and services certification assesses financial products and services for adherence to the Responsible Investment Standard. The Responsible Investment Standard – and accompanying Guidance Notes – codifies processes and practices for funds aiming to invest responsibly. Products and services that carry the Certification Symbol have been verified to be fit-for-purpose in line with this aim.
The Program was established 18+ years ago in the absence of a regulated sustainable finance labelling regime with the aim of building investor awareness of the benefits of responsible investment, and confidence that certified products and services will support investor needs and expectations. As standards of responsible investment practice are driven upward, a race to the top ensues, enabling the fulfillment of RIAA’s mission to align capital with achieving a healthy and sustainable society, environment and economy.
What does the Program consider to be the right approach to Responsible Investment?
The Certification Program is inclusive of all approaches to Responsible Investing. At a minimum, the Program requires products to demonstrate ESG Integration and Stewardship. Its Avoid Significant Harm criteria may be fulfilled through negative screening or by product design. Products using terms such as ‘sustainable’ or ‘impact’ in their labels are expected to utilise one or more of Positive/Best-in-Class Screening, Thematic Investing and Impact Investing approaches. In this way, while the Program does not prescribe one ‘right’ approach to Responsible Investment, it standardises expectations for varying product types to demonstrate that they are true to label.
What is the difference between RIAA’s Certification Symbol and the Responsible Investor / Responsible Investment Leader insignia?
RIAA’s Certification Program assesses financial products/services and financial advisers; RIAA’s Responsible Investor Leader and Responsible Superfund Leader assessments focus on organisations.
RIAA certified products are verified to have met assessment criteria through the RIAA Certification Program based on the Responsible Investment Standard and Guidance Notes. RIAA’s rigorous product-level assessment and independent verification are key differentiators of certification.
Responsible Investment Leaders are investment managers that achieve a score of 15 out of 20 or above on RIAA’s Responsible Investment Scorecard, as captured and assessed via survey and desktop research for the annual Australia Responsible Investment Benchmark Report. These organisation-level scores are based on publicly available information, rather than verified assessment.
Being a Responsible Investment Leader recognises an investment manager’s whole-of-organisation attributes.
In contrast, RIAA’s Responsible Investment Certification Symbol is used to differentiate quality, true to label responsible investment products which meet the Australian and NZ standard for responsible investing.
How does RIAA determine what product/service types to certify?
RIAA certifies financial products/services that can adhere to the Responsible Investment Standard. In some cases, Guidance and Assessment Notes are used for certain product types (e.g. Banking) to ensure that the scope of certification continues to represent an uplift in standards for Responsible Investment for the specific product type or industry in line with the Responsible Investment Standard.
Why does the Program not certify cash funds?
RIAA certifies cash deposit and cash equivalent banking products with environmental and social objectives. These product types have opportunities to support environmental and social lending practices over which the Responsible Investment Standard can be applied.
By certifying cash deposit and cash equivalent banking products, responsible lending standards of practice are tested with a view to lifting standards in the banking industry.
RIAA does not certify cash assets held by institutional investors. The Responsible Investment Standard cannot be effectively applied over cash funds of this nature due to the fact that unless invested or spent, cash has no material effect on environment or society.
Product and service certification
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