Many investors want their money aligned with their values. The 2025 Annual Report from the Ethical Advisers’ Co-operative (the Co-op) shows what it takes to ensure that alignment is genuine and holds over time.
Paul Garner CFP® of Novo Wealth in Adelaide is part of this network of specialist advisers. The report outlines how ethical and values-based investing is approached in practice – and the level of rigour involved is greater than many investors realise.
The Co-op represents more than 40 specialist advisers across Australia and Aotearoa New Zealand, supporting 3,402 clients and managing over $3.25 billion invested with ethical alignment.
Behind those numbers is deep familiarity with the funds and companies clients rely on, and collaboration between members to ensure clients receive considered, well-informed advice.
Careful research, not labels
One of the clearest themes in the 2025 report is the depth of assessment Co-op members apply to investment products.
The Ethical Fund Ratings (Leaf Ratings)* include reviews of more than 50 managed funds and superannuation products. These ratings examine portfolio transparency, what is screened out and what remains, company voting disclosure, and engagement practices.
*Funds do not pay to be rated. The research is independent, and Leaf Ratings are based on survey results.
For clients, that matters. A fund is not selected simply because it sounds responsible. The companies inside the fund are understood. Exclusions are clarified. Engagement practices are reviewed. The details are clear before money is invested.
Every super fund and managed investment product takes a different approach. Advisers within the Co-op – including Paul – take care to ensure investments align as closely as possible with each client’s personal values, financial goals and stage of life.
Alt text (for accessibility + SEO): Infographic showing the Top 9 Ethical Fund Leaf Ratings of 2025 from the Ethical Advisers’ Co-op Annual Report, featuring Australian and global sustainability funds ranked by Leaf Rating.
Image Caption: Top 9 Ethical Fund Ratings of 2025, as featured in the Ethical Advisers’ Co-op Annual Report.
Image URL (if possible): https://www.ethicaladviserscoop.org/annual-reports/
Clients as active shareholders
Another important theme in the 2025 report is shareholder participation.
Many investors are unaware that owning shares – whether directly or through funds – can carry voting rights and influence.
The report references shareholder resolutions connected to companies including Coles (ASX:COL), Woodside Energy (ASX:WDS), Whitehaven Coal (ASX:WHC), major banks and others.
For example:
- At Woolworths (ASX:WOW), a shareholder resolution addressing biodiversity impacts linked to farmed seafood achieved ~34% support – the highest vote globally for a nature-related resolution in 2025.
- A paid parental leave resolution at childcare provider G8 Education (ASX:GEM) received ~29% support.
- While a gas-risk mitigation resolution at CSL (ASX:CSL) was withdrawn after the company agreed to publish a decarbonisation statement.
Those outcomes represent investors expressing clear positions on environmental and governance matters – and boards are paying attention.
Specialist ethical advisers play an important role in helping clients understand how shareholder rights operate, what issues are being raised, and how clients can participate in campaigns to influence corporate behaviour.
For investors who want to move beyond simply selecting a fund and instead understand how shareholder activism can carry influence – Paul works with clients to make that possible.
Engagement raises the bar
The 2025 Annual Report also highlights engagement, and how closely Co-op advisers remain connected to the funds and companies their clients invest in.
This involves reviewing disclosures as they change, assessing how companies respond to shareholder pressure, examining how fund managers vote, and understanding how policies evolve over time.
That level of attention improves more than individual portfolios. It strengthens the quality of the products themselves. When advisers ask detailed questions, transparency improves. When shareholder resolutions gain material support, boards respond. When concerns are followed up consistently, portfolio holdings shift.
For investors asking “How do ethical funds actually influence companies?” or “Does my super fund vote on climate or human rights issues?”, the report provides clear examples of this in practice.
Some examples include:
- Australian Ethical divested from all Australian airports in its Fixed Interest Fund’s holdings in airport bonds following environmental concerns linked to bushland clearing.
- Betashares removed Wisetech Global from the FAIR ETF after governance issues were raised.
- Global X sold Hanwha Aerospace stock from the HGEN ETF following engagement regarding weapons exposure.
These developments show how sustained attention and adviser involvement can influence company disclosures and portfolio decisions over time.
For clients, working with a specialist adviser who understands how exclusions are applied, how voting decisions are made, and how engagement operates in practice provides greater confidence that investments remain aligned.
What this means for investors in Adelaide
If you are reviewing your superannuation, planning for retirement, or seeking greater confidence about where your money is invested, this depth of expertise matters.
It means:
- Products are properly researched.
- Claims are tested against evidence.
- Voting practices are understood.
- Screening thresholds are clearly explained.
- Engagement is ongoing.
Paul’s membership in the Ethical Advisers’ Co-op connects his clients to this shared research and collective effort.
Ethical investing does not need to feel complicated or uncertain. With the right guidance, it can be clear, considered and aligned with what matters most to you.
The 2025 Annual Report sets a clear benchmark for ethical investing. It’s the same high standard Paul applies when helping clients build financial freedom at Novo Wealth.
For investors looking for an ethical financial adviser in Adelaide, contact Paul Garner on 08 8363 8810 or email pgarner@novowealth.com.au for a complimentary 15-minute chat.
All the best
Paul Garner CFP®
Certified Responsible Investment Financial Adviser
This article was written in collaboration with Paul Garner of Novo Wealth and Alexandra Brown of Ethical Invest Group
IMPORTANT: This information is general in nature and does not take into account your individual objectives, financial situation or needs. Always seek personal advice before making investment decisions.
