Superannuation

Australian super funds that comprehensively engage in responsible investment are outperforming their peers over one, three and five-year time frames, a new report from the Responsible Investment Association Australasia (RIAA) has found. The report also shows that in the face of rising public concern and increasing financial materiality of climate change, the consideration of climate risk by super fund boards continues to grow, but there remains room for improvement. This third edition of the Responsible Investment Super Study 2019 presents the results of an annual survey of Australia’s 57 largest superannuation fundsi – accounting for $1.75 trillion in assets under management. “This year’s report shows that Australia’s largest superannuation funds – including industry, retail, corporate and public sector funds – are ramping up their engagement in responsible investing to drive superior financial performance, reduce risk, and deliver better outcomes for their members and beneficiaries,” said Simon O’Connor, CEO of RIAA. 81% of Australia’s largest super funds are committed to responsible investment (up from 70% in 2016), and 72% report annually on responsible investment activity (up from 44% in 2016), highlighting how responsible investing is increasingly being embedded within Australian investment markets.

There’s been much debate recently around the appropriateness of investors targeting Australian businesses to protect our environment, to lift standards of human rights, and superannuation funds exercising their ownership on issues such as climate change.

Australia’s largest superannuation funds are ramping up their engagement in responsible investing to drive superior financial performance, reduce risk, and better meet their members’ and beneficiaries’ expectations, a new report from the Responsible Investment Association Australasia (RIAA) has found. From backing shareholder resolutions demanding company disclosure on climate risk to divesting from companies with poor governance or engaged in unethical activity, Australian super funds are increasingly flexing their muscle to influence better company behaviour. RIAA’s Super Fund Responsible Investment Benchmark Report 2018 finds that 81% of Australia’s largest super funds are committed to responsible investment (up from 70% in 2016), and 62% report annually on activity, highlighting how deeply responsible investing has become part of Australian investment markets. Australia’s largest superannuation funds are ramping up their engagement in responsible investing to drive superior financial performance, reduce risk, and better meet their members’ and beneficiaries’ expectations, a new report from the Responsible Investment Association Australasia (RIAA) has found. From backing shareholder resolutions demanding company disclosure on climate risk to divesting from companies with poor governance or engaged in unethical activity, Australian super funds are increasingly flexing their muscle to influence better company behaviour. RIAA’s Super Fund Responsible Investment Benchmark Report 2018 finds that 81% of Australia’s largest super funds are committed to responsible investment (up from 70% in 2016), and 62% report annually on activity, highlighting how deeply responsible investing has become part of Australian investment markets. The Super Fund Responsible Investment Benchmark Report 2018 presents the results of a survey of Australia’s 53 largest superannuation funds1 – accounting for $1.4 trillion in assets under management.

The Responsible Investment Association Australasia (RIAA) has welcomed the Productivity Commission’s draft report Superannuation: Assessing Efficiency and Competitiveness highlighting the importance and benefits of Australia’s superannuation capital being invested responsibly to create the Australia its members want to live in and leave behind. “We agree wholeheartedly with the Productivity Commission’s report that our superannuation system needs to work for all Australians, meeting the needs of members and retirees, and delivering high performance,” said RIAA CEO Simon O’Connor. “Responsible investment provides a critical vehicle for Australia’s superannuation industry to optimise financial returns for its members. Environmental, social, corporate governance and ethical factors have become critical considerations in investment practice, increasingly impacting upon valuations and investment returns. “Responsible investment funds are outperforming their average mainstream counterparts year on year, as the market for responsible investment continues to grow in Australia. RIAA’s 2017 Responsible Investment Benchmark Report shows ‘core’ responsibly invested Australian share funds and balanced multi-sector funds have outperformed their equivalent mainstream funds over 3, 5 and 10-year horizons. Beyond RIAA’s own research, these findings have now been supported by academic and industry research from across the world’s most esteemed universities and institutions. “The bulk of evidence now clearly concludes that to ignore environmental, social, corporate governance and ethical issues blinds investors to some of the key investment risks that are increasingly determining performance of investment outcomes,” said O’Connor.

9 in 10 Australians expect their superannuation or other investments to be invested responsibly and ethically, new research commissioned by the Responsible Investment Association Australasia (RIAA) has revealed. In an important signal to Australia’s superannuation, banking and wealth management sectors, 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, and just over half will consider making ethical or responsible investments in the next 1 to 5 years. The Australia-wide polling, conducted by Lonergan Research and launched today at RIAA’s Responsible Investment Australia 2017 conference in Sydney, shows consumer demand for responsible and ethical investment is on the rise, as the responsible investment industry continues to grow in size and influence.

A new superfund benchmarking report launched at RIAA’s Responsible Investment Conference in Melbourne today has found that over two-thirds of the largest superfunds in Australia now have embedded a commitment to responsible investment, highlighting just how deeply the move to invest with a responsible approach has become a part of Australian investment markets. The inaugural Superfund Responsible Investment Benchmarking Report (the Report) involved a detailed assessment and survey of the largest 50 superfunds1 in Australia – a universe that accounts for around $1.3 trillion of assets under management.

his was the question The Treasury sought views on last week, with the intention of enshrining this purpose in legislation to finally create clarity 24 years after the introduction of the compulsory Superannuation Guarantee.

Responding to the surging consumer interest in responsible and ethical investments, RIAA is today announcing the re-launch of its Responsible Investment Certification Program – a tool designed to help consumers and financial advisers navigate towards the growing range of responsible investment options. RIAA’s Certification Program has been in place for 10 years and in recent months was revised and strengthened with a focus on the internal governance, program requirements, criteria and verification processes. Responding to the surging consumer interest in responsible and ethical investments, RIAA is today announcing the re-launch of its Responsible Investment Certification Program – a tool designed to help consumers and financial advisers navigate towards the growing range of responsible investment options. RIAA’s Certification Program has been in place for 10 years and in recent months was revised and strengthened with a focus on the internal governance, program requirements, criteria and verification processes. “With the recent work we have done on the Certification Program, we are now very excited to be bringing this to market at a time when it couldn’t be more important to provide clear, verified and transparent information about the rapidly growing range of responsible investment products.” said RIAA CEO Simon O’Connor.

Most Australians (54%) would rather invest in a responsible super fund than a super fund which only considers maximising financial returns (46%), according to a national poll released today by RIAA.