All about the Rise and Expansion of Ethical Investments in Australia
Whether you are new to investing or have been investing your money for years, you may want to consider checking if your investments are aligned with your values.
Is your money going towards funding sustainable and ethical practices to contribute to making a brighter future for all?
83% of Australians expect their bank account and their super to be invested responsibly and ethically.
But many people don’t actually know how their money is invested whether by their bank, super or investment funds.
Responsible Investment Association Australasia, From Values to Riches – Report 2022
According to the Responsible Investment Association Australasia (RIAA) 2022 Report, responsible investment decisions in Australia are growing rapidly and are expected to continue rising.
17% of Australians hold responsible investments, which has increased rapidly since 2020.
Many Australians want to learn how they can grow their wealth and contribute to making a positive impact on the world at the same time.
As the report highlights:
61% of Australians would be motivated to try to save and invest more money if they knew they were making a positive difference in the world.
Investing ethically is considered a great financial strategy to help you build your wealth and make a positive sustainable and environmental impact.
An ethical financial adviser can help you ensure your financial investments focus primarily on your individual needs and support making positive impacts on society, culture and people’s lives.
Novo Wealth specialises in ethical investment advice to ensure you are achieving your financial goals whilst also staying true to your morals.
Why is Ethical and Responsible Investing on the Rise?
Ethical investing may be growing in Australia but so is the overall rise in environmental consciousness within consumer behaviour.
According to Dave Rae, a representative from RIAA,
“Consumers are making more sustainable decisions around fashion, food, transport, energy, and now they are connecting their money to their values as well. It’s no longer just about being green; it’s about being responsible and conscious of the impact choices have on others and the planet we share.”
Are you aware of which financial products you can invest in responsibly?
Ethical investing can be done through your:
- Super funds
- Savings account
- Property investments
- Exchange-Traded Funds (ETFs)
You can develop sustainable portfolios that practice ethical divestment – helping you avoid investing your money in companies and financial products that contribute to fossil fuels, child labour, animal cruelty, tobacco, alcohol and weapons manufacturing. Instead, your money can be used to fund companies that utilise clean energy resources and ethical practices.
At Novo Wealth, we offer personal financial advice, tailored to your financial situation, for those who want to secure, a professional and ethical plan for their finances to help make the world a better place.
Ethical Financial Advice
As an Australian, how can you join the movement and reflect your values in future investments?
Since ESG integration continues to dominate as a responsible investment approach in Australia, you may want to consider joining the movement yourself and reap the responsible returns.
These tips may be a great place for you to start ethical investing:
- Begin With Your Values System: What beliefs do you have? You may have specific values that you would never want to violate, even if you could gain financially. This may include a commitment to the environment through the production of particular products or the prevention of specific practices, such as native forest logging and uranium mining. In any case, you may want to seek a responsible investment adviser committed to guiding you towards data-driven asset allocation decisions that consider your financial needs and wants.
- Screening Process: To ensure you make an investment decision that aligns with values that are important to you, you may want to ask an expert investment adviser if they practice positive screening and how that process works.
Investors are becoming more and more cautious if their investment managers are including companies with strong social or environmental mandates when helping them decide where their money can be invested.
Paul Garner – Specialist Investment Advisor at Novo Wealth – can help you consider your individual investment objectives through responsible and ethical investment advice. Sustainable investing is one of our core business values and we can find high-performing ethical investments that provide you with returns aligned to your financial goals.
- Observe Performance: It has long been believed that aligning investments with your values results in lower returns than market indices. However, research shows that it is possible to improve returns without compromising social, environmental, and governance factors.
Want to Make Ethical Investments Today?
With more people advocating for ethical investing, the world may eventually witness a significant change in the environment and society for good. As long as you work with the right ethical financial adviser, you can positively impact the world, advancing us one step closer to achieving all our environmental goals.
What do you say? Make the switch today to Novo Wealth! We are THE ethical financial advice specialist for professionals and business owners who want to invest responsibly, specialising in transitioning our clients from working life into retirement.