Media releases

The Australian Government’s announcement that the country will target net zero emissions by 2050 is welcomed, however its 2030 target remains insufficient for positioning Australia competitively into the future and achieving a sustainable and productive economy, the Responsible Investment Association Australasia (RIAA) has said. The Government has announced that Australia will keep its commitment to reducing emissions 26-28% by 2030 (compared to 2005 levels). “The announcement to target net zero emissions by 2050 aligns Australia with our key trading partners and is welcomed. However Australia’s near-term target of achieving emissions reductions of 26-28% by 2030 is not aligned with the Paris Agreement’s interim targets of 35-55% and is insufficient for readying the Australian economy for the transition needed,” said Nicolette Boele, RIAA’s Executive, Policy and Standards. “Projections do not offer business and investor sufficient policy certainty. Australia’s projections of achieving 30-35% reductions by 2030 should be government policy, providing investors with more reliable parameters for better risk pricing and valuation.”

Following this week’s release of the final report from the Senate inquiry into Rio Tinto’s destruction of Juukan Gorge, a new toolkit for the Australian and global investment community has been launched, detailing practical steps investors can take when considering and engaging with companies on Indigenous Peoples’ rights and cultural heritage protection. An initiative of the Responsible Investment Association Australasia’s (RIAA’s) Human Rights Working Group, the Investor Toolkit: An Investor Focus on Indigenous Peoples’ Rights and Cultural Heritage Protection supports investors to manage the increasingly material issue of Indigenous heritage protection. The toolkit was produced by leading experts from finance organisations such as abrdn (formally Aberdeen Standard Investments), HESTA, AustralianSuper and Refinitiv, and endorsed by Indigenous groups such as the First Nations Heritage Protection Alliance and National Native Title Council.

A landmark business and investor initiative has been launched – bringing together First Nations, business and investor communities – focused on strengthening Australia’s First People’s heritage laws and standards for the private sector to uphold the human rights of First Peoples. Led by the First Nations Heritage Protection Alliance in partnership with the Global Compact Network Australia (GCNA), and the Responsible Investment Association Australasia (RIAA), the Dhawura Ngilan Business and Investor Initiative sees protecting cultural heritage as the responsibility of all Australians, including the finance and business sectors. The initiative is being launched as the Joint Standing Committee on Northern Australia prepares to report on its inquiry into the devastating destruction of Juukan Gorge on the traditional lands of the Puutu Kunti Kurrama and Pinikura (Binigura) peoples. This 2020 event marked a turning point in awareness of the value and importance of Country and cultural heritage for all Australians.

The market for responsible investments in Aotearoa New Zealand has continued to soar in popularity to $142 billion in 2020, with responsible investment assets growing at more than twice the rate of overall professionally managed investments – 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 Aotearoa New Zealand 2021, shows that 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, increasing 28% to $142 billion in 2020 from $111 billion in 2019. Additionally, the proportion of professionally managed funds now managed with leading practice responsible investment has grown to 43% in 2020. “The proportion of New Zealand’s investment managers practising a leading approach to responsible investment nearly doubled in 2020, to comprise nearly half of investment managers purporting to engage in responsible investing,” said Nicolette Boele, Executive, Policy and Standards for RIAA. “This trend suggests the quality of practice in New Zealand is pulling ahead of the Australian marketplace, where only a quarter of investment managers are engaging in leading practice responsible investment. “Meanwhile we are seeing those investment managers with ineffective responsible investment policies and poor processes being left behind as the capital moves out”.

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.

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

The Responsible Investment Association Australasia (RIAA) has welcomed the Sustainable Finance Forum’s Roadmap Action Plan launched today in New Zealand. “The financial sector has a central role to play in contributing to New Zealand’s long term social, environmental and economic wellbeing and prosperity. This Roadmap lays the foundation for ensuringfinance plays its part in delivering a sustainable, net-zero economy” said Simon O’Connor, CEO of the Responsible Investment Association Australasia (RIAA). “Once implemented, this Plan will position New Zealand as a global leader in sustainable finance, and build the resilience of its capital markets into the future”. “We welcome the recommendation that definitions of sustainable finance products be further standardised, acknowledging the need for consumers to have confidence that products are delivering on claims and are true to label.” “In particular, we welcome the specific recommendation that RIAA’s long running Responsible Investment Certification Program play a key role as a requirement for all default KiwiSaver providers, as well as for other investors making responsible investment claims. The importance of such assurance was underscored in our consumer research launched last week that showed that 82% of New Zealand consumers would be more likely to invest in a product certified by a third party.”

As New Zealand prepares to release its sustainable finance roadmap, new research shows that more than three-quarters (78%) of New Zealanders with KiwiSaver or other investments believe that ethical or responsible investments perform better in the long term. The new study, conducted by Dynata for Mindful Money and the Responsible Investment Association Australasia (RIAA), highlights the significant consumer demand for responsible and ethical investment, as the industry continues to grow in its size and influence. The study finds that savings could be boosted if people see a positive social or environmental benefit from their investments. Nearly two-thirds of New Zealanders would be motivated to save and invest more money if they knew their savings and investments made a positive difference in the world. “We are seeing overwhelming support from consumers for their hard-earned money to achieve positive outcomes and to avoid causing harm” said RIAA CEO Simon O’Connor. “In an important signal to New Zealand’s KiwiSaver, banking and wealth management sectors, 58% of New Zealanders would consider switching their KiwiSaver or other investments to another provider if their current fund engaged in activities inconsistent with their values.” “Demand for ethical investing remains strong through the COVID pandemic” says Mindful Money’s founder and CEO, Barry Coates. “Over 90% of those who do not perceive to currently have an ethical investment fund are intending to invest ethically, most of them within the next year. This is evidence of strong growth in the consumer movement.”

Companies which look after their employees, minimise their impact on the environment, have good governance and protect human rights across supply chains have become a key focus for New Zealand investors, the landmark annual study from the Responsible Investment Association Australasia (RIAA) has found. The new RIAA report undertaken in collaboration with KPMG, the Responsible Investment Benchmark Report 2020 New Zealand, shows that the vast majority (94%) of New Zealand investors now have a commitment to responsible or ethical investing. However just over half (52%) can demonstrate a leading approach that is contributing to real world outcomes. Responsible investors in New Zealand have shifted their focus from screening out harmful industries such as tobacco and armaments, to considering broader environmental, social and corporate governance (ESG) factors when investing, as well as making impact investments which aim to deliver positive outcomes for society and the environment said Simon O’Connor, RIAA CEO.

The Responsible Investment Association Australasia (RIAA) has welcomed the New Zealand Government’s announcement today that it will require the business and finance sector to report on climate risks. “This marks a significant step forward and demonstrates New Zealand’s exemplary leadership on the global issue of climate change and the sustainability of New Zealand’s financial system and economy” said RIAA CEO Simon O’Connor. “This requirement makes a pivotal contribution to New Zealand’s comprehensive engagement on climate change and help New Zealand to deliver upon its commitment to the Paris agreement. Once implemented, investors will be better able to price and value companies within the portfolios they manage, as well as realign portfolios to contribute to a lower carbon world.” “New Zealand’s future resilience and prosperity depends on being able to navigate climate change risk. It is now the expectation that our finance and corporate sectors deliver positive social and environmental outcomes, and they need to be able to measure and report on these over time.”