MANY RESPONSIBLE INVESTMENTS HAVE PROVEN THEY CAN DELIVER PERFORMANCE IN LINE WITH THE VERY BEST MANAGED INVESTMENTS IN THE WORLD, WHILE HELPING TO BRING ABOUT POSITIVE CHANGE IN SOCIETY.
There is now substantial evidence and research in Australia, New Zealand and internationally, to support the argument that RI performs on a par with, if not better than, the broader investment market.
The old misconception that investing in accordance with what matters to you personally will mean sacrificing returns is no longer credible.
Savvy investors are also seeking out the sector not necessarily because of their personal convictions but because it includes forward-looking investments with excellent potential for future growth: the clean energy sector, better healthcare services, mass transport or education.
Why? Because events in our natural world and in our economy show us environmental and social issues impact directly on the performance of companies. Adopting a responsible investment approach is about ensuring you are minimising your exposure to the financial risks increasingly associated with climate change, changing energy needs, poor ethical and governance practices, water shortages or exploitative labour practices.
In the future it’s likely those companies that fail to manage their environmental and social risks will perform poorly. Those that pay close attention to these issues and are committed to sustainability will be able to tap into investment opportunities.
For example, the end of cheap oil, and the depletion of reserves will lead to higher oil prices, favouring companies that can supply competitive energy alternatives and localised energy security. The need to transfer large volumes of water from water-rich to water-scarce areas will benefit companies specialising in the financing, management and engineering of large pipeline and purification services.
Find out about RI’s latest competitive returns.
RI IN ACTION!
Find out why Dave decided to apply a responsible investment approach to the management of his self-managed super fund.
WANT TO LEARN MORE?
Find out how responsible investment can make a difference to the environment and climate change.
READY TO INVEST?
If you’re ready, start investing responsibly.
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