The results of an Australia-wide study commissioned by the Responsible Investment Association Australia has found that the majority of Australian investors expect that their superannuation or other investments will be invested responsibly and ethically.  RIAA’s CEO Simon O’Connor commented that research indicates that 'The vast majority of Australians want superannuation invested responsibly, such as through investing in companies that build clean energy infrastructure or avoiding investments that can harm communities such as weapons manufacturing.  Other key issues of concern for consumers, in terms of their investments, include animal cruelty (69%), human rights violations (62%), and pornography (56%).' 

Key Findings

The study aimed to explore the effect of social issues on how Australians invest their funds. Key findings include those outlined below. 

• Widespread expectation that investments are invested ethically and responsibly: 9 in 10 (92%) people expect their superannuation or other investments to be invested responsibly and ethically.
• Willingness to switch funds: 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.  The study found that millennials are the most likely to consider changing super providers or other investments to another provider if their current fund engaged in activities not consistent with their values (88%) as compared with 77% of Gen X, and 68% of Baby Boomers.  
• Evidence that ESG considerations are increasingly important factor for investors: 7 in 10 (69%) Australians would rather invest in a responsible super fund that considers the environmental, social and governance (ESG) issues of the companies it invests in and maximises financial returns, rather than a super fund which considers only maximising financial returns (31%).  According to the report, this attitude has increased by 27% since 2013.
• Top three Environmental Social Governance (ESG) issues for investors: 4 in 5 (82%) Australians consider important social issues when investing. The vast majority (85%) of Australians believe superannuation should be invested responsibly, such as through investing in companies that build clean energy infrastructure or avoiding investments that can harm communities such as weapons manufacturing.  The top three ESG issues identified were: renewable energy (48%), healthcare and medical products (45%), and sustainable practices (44%).
• What investors don't want to invest in: According to the study, nearly 9 in 10 (87%) Australians have important issues they avoid investing their money into.  The top three things study participants wish avoid investing in are: animal cruelty (69%), human rights violations (62%) and pornography (56%).
• Groups most likely to invest responsibly: Millennials are the most likely group to invest in a responsible super fund that considers environmental, social and governance issues in addition to maximising financial returns (75%) and are the most likely to consider making ethical and responsible investments in the future (69%).  The research also found that women are more likely to strongly expect their super or other investments to be invested responsibly and ethically: 57% of women as compared with 42% of men. 
• Access to information was identified as a challenge: The survey found 56% of participants believed there is not enough independent information available regarding switching to a responsible or ethical super fund, or option within a super fund. 
• Expectations of financial advisers have changed: The survey found that expectations of financial advisers have also evolved with consumers wanting advice and investments to cover their values as well as their risk appetites: 49% of investors expect their advisers to invest in funds which align with their values and 63% expect their advisers to incorporate their values or consider the societal or environmental implications of particular investments.

About the survey: The findings are based on an Australia-wise survey of 1037 people, over the age of 18 during the period 19 and 23 October 2017.  The research was commissioned by the RIAA and carried out by Lonegran research in accordance with the ISO 20252 standard.