Events & News

The market for responsible investments in Australia has continued to soar in popularity to $1.2 trillion in 2020, with responsible investment assets growing at 15 times the rate that overall Australian professionally managed investments have grown – the landmark annual study from the Responsible Investment Association Australasia (RIAA) has found. The new RIAA report, researched in collaboration with KPMG, Responsible Investment Benchmark Report 2021 Australia, shows that the Australian responsible investment market reached new highs in 2020, increasing to $1,281 billion in 2020 from $983 billion in 2019. Additionally, the proportion of responsible investment AUM to total managed funds grew from 31% to 40% in 2020, despite there only being a 2% increase in all professionally managed funds in Australia over the same period. While the majority of the mainstream investment market claims to be responsibly invested, those funds engaging in leading practice responsible investment have seen an explosion in assets under management, growing 30% in 2020. This movement of capital has come at the expense of the remainder of the market, which has seen the value of assets shrink by 11% ($234 billion). “Investment managers committed to responsible investment and leading practice are seeing money moving across into their funds, while those with ineffective policies and poor processes are being left behind as the capital moves out” said Nicolette Boele, Executive, Policy and Standards for RIAA. “The message for investment managers is clear. It’s not good enough to simply claim you’re investing responsibly. If you’re not doing it well, then there’s a high risk of losing business.

Whilst the last year has had us all battling the invisible enemy that has been COVID-19 on both personal and professional fronts, it has also been a year of immense momentum in responsible investment and sustainable finance, as you are all no doubt aware.

RIAA presents its first Reconciliation Action Plan (RAP), outlining its commitment to advancing reconciliation with Aboriginal and Torres Strait Islander peoples.

The Chartered Financial Accountants (CFA) Institute developed voluntary, global industry standards, the CFA Institute ESG Disclosure Standards for Investment Products.

Draft Prudential Practice Guide CPG 229 Climate Change Financial Risks (CPG 229) by the Australian Prudential Regulation Authority (APRA), designed to assist APRA-regulated entities in managing climate-related risks and opportunities as part of their existing risk management and governance frameworks.

On 24 May 2020, Rio Tinto destroyed 46,000-year-old caves at Juukan Gorge – a place of personal, community, national and international significance. One year on, investors are working with First Nations peoples and organisations to increase First Nations voices in responsible investment and sustainable finance and ensure our investments respect and protect First Nations peoples’ rights and self-determination.

Modern slavery and human rights showed increased dominance in environmental, social and governance (ESG) research aimed at informing and driving more responsible investment in Australia over the last year, following the far-reaching local and global impacts of COVID-19. At the 11th Annual ESG Research Australia Awards held today at the RI Australia 2021 conference from the Responsible Investment Association Australasia (RIAA), Citi, Bank of America Merrill Lynch and Credit Suisse took out awards for excellence in ESG research by a broker. An additional award from RIAA was also presented to the Australasian Centre for Corporate Responsibility for new ESG research by a non-broker. The winners of this year’s ESG Research Australia Awards are: Best Piece of New ESG Research: Nothing to lose but chains – A modern take on slavery for investors, by Zoe Whitton and Edward McKinnon, Citi • Best Piece of Ongoing ESG Research: CEO incentives and analyst expectations, by Sameer Chopra et al., Bank of America Merrill Lynch • Best ESG Broking Firm: Credit Suisse The winner of RIAA’s ESG Research Award recognising excellence in investor relevant ESG research by a non-broking firm is: Best Piece of Investor Relevant ESG Research (non-broking firm): Modern slavery and human rights showed increased dominance in environmental, social and governance (ESG) research aimed at informing and driving more responsible investment in Australia over the last year, following the far-reaching local and global impacts of COVID-19. At the 11th Annual ESG Research Australia Awards held today at the RI Australia 2021 conference from the Responsible Investment Association Australasia (RIAA), Citi, Bank of America Merrill Lynch and Credit Suisse took out awards for excellence in ESG research by a broker. An additional award from RIAA was also presented to the Australasian Centre for Corporate Responsibility for new ESG research by a non-broker. The winners of this year’s ESG Research Australia Awards are: Best Piece of New ESG Research: Nothing to lose but chains – A modern take on slavery for investors, by Zoe Whitton and Edward McKinnon, Citi • Best Piece of Ongoing ESG Research: CEO incentives and analyst expectations, by Sameer Chopra et al., Bank of America Merrill Lynch • Best ESG Broking Firm: Credit Suisse The winner of RIAA’s ESG Research Award recognising excellence in investor relevant ESG research by a non-broking firm is: Best Piece of Investor Relevant ESG Research (non-broking firm): Labour Hire & Contracting Across the ASX100, by Dr Katie Hepworth, Australasian Centre for Corporate Responsibility

Climate Change Commission's first package of advice to government to help Aotearoa transition to a thriving, climate-resilient and low emissions future.

Federal Parliament Inquiry by the Joint Standing Committee on Trade and Investment Growth into prudential regulation of investment in Australia’s export industries.

Exposure Draft Regulations and Explanatory Statement for the Australian Government’s Your Future, Your Super (YFYS) package of reforms designed to make sure the superannuation system delivers better outcomes for members.