Impact of certification - Certification

Lifting standards for responsible investment

Investing responsibly is no longer a niche activity. The market is maturing and so must the standards that underpin it. RIAA’s Certification Program has become a key driver of this evolution, helping to ensure that investment products across Australia and New Zealand are not only well-intentioned but also well-substantiated.

From 2021 to 2024, over 250 products were assessed for both certification and recertification through the Program. As the volume of certified products grew steadily, so has the rigour of assessments. In Australia, the most common uplifts related to exclusions definitions and truth in labelling, particularly for superannuation and exchange-traded funds (ETF). In Aotearoa New Zealand, stewardship and sustainability claims were more frequently amended, especially among KiwiSaver offerings.

This nuance reflects the diversity of product structures, regulatory environments, and investor expectations between markets. But the common thread is that the bar is being lifted across the board. Certification is a catalyst for integrity, transparency and credibility.

RIAA Certification

Since 2005, RIAA has run the Responsible Investment Certification Program, in the absence of regulated or legislated requirements on sustainable finance product disclosure and labelling. The industry-run standard implements robust governance processes and keeps up-to-date with local and international regulatory developments. The program is the leading initiative for distinguishing quality responsible, ethical and impact investment products and services in Australia and New Zealand. For more information, see the Certification page.

Glossary of terms

Term	Definition
Responsible Investment Standard	The standard used by RIAA to assess whether a product or service meets responsible investment expectations, including exclusions, stewardship, sustainability claims and labelling.
Guidance notes	Supplementary documents to the Standard that set out detailed expectations for specific areas such as stewardship, product labelling and climate claims.
Assessment notes	Technical documents outlining minimum requirements for specific certification areas (for example, Avoiding Significant Harm minimum requirements).
Certification directory	RIAA’s publicly available repository of certified products and services (previously known as Responsible Returns).
Exclusions	Investment screens that prevent exposure to specific industries or activities deemed harmful, such as gambling, alcohol production, palm oil production or supply-chain human rights violations.
Avoiding Significant Harm (ASH)	A certification category focused on fully excluding specified harmful activities from product portfolios. At a minimum, products must exclude producers of tobacco, manufacture of nicotine alternatives and tobacco-based products, controversial weapons and nuclear weapons. The Program recognises differing revenue calculation methodologies.
Stewardship	Active ownership practices including voting on shareholder resolutions, engagement (individual or collaborative) and advocacy to influence corporate behaviour in line with responsible investment goals.
Voting records	Documentation of how a fund votes on shareholder resolutions, used to demonstrate stewardship transparency.
Engagement outcomes	Evidence of how a fund engages with investee companies to influence environmental, social and governance practices, often disclosed in stewardship reports.
Sustainability claims	Statements about positive environmental or social positioning, such as “sustainable investing” or “positive tilt”.
SDG alignment	A subset of sustainability claims where products assert links to specific UN Sustainable Development Goals (SDGs). Certification assesses the strength of the claimed links and disclosures.
Product labelling	The use of responsible investment terms such as “sustainable”, “impact” or “leaders” in product names, labels, claims and marketing. Certification assesses substantiation and consistency.
Climate claims	Assertions related to addressing climate change, such as reduced carbon intensity, net zero targets, fossil fuel exclusions or climate transition strategies. Claims must be credible and verifiable.
Climate claims annex	A supplement to the Guidance Note – Product Labelling that outlines expectations for substantiating climate-related claims.
Spot checks	Periodic reviews conducted by RIAA to ensure certified products continue to meet requirements and accurately reflect their claims.
SMA / MDA	Separately Managed Accounts / Managed Discretionary Accounts, where advisers manage portfolios on behalf of clients.
KiwiSaver	New Zealand’s voluntary, work-based retirement savings initiative.
Superannuation	Australia’s mandatory retirement savings system.
ETF	Exchange-Traded Fund – an investment fund traded on stock exchanges that holds a collection of assets and typically tracks a specific index.
Greenwashing	The practice of making misleading or unsubstantiated claims about the environmental or ethical credentials of a product or service.
Certification symbol	The visual mark awarded to products and services that meet RIAA’s Responsible Investment Standard and all certification requirements, signalling credibility to investors.
Uplift	A required improvement or amendment imposed during certification to bring a product into alignment with the Responsible Investment Standard.
Conditional approval	Certification granted with conditions to be met within a specified timeframe (for example, updating disclosures or divesting holdings).
Net zero target	A time-bound commitment to reduce greenhouse gas emissions to net zero.
Carbon intensity	A measure of emissions per unit of economic activity or energy output (for example, per million dollars invested), used to assess climate-related performance.
Positive tilt	A portfolio strategy that increases exposure to assets or entities with stronger environmental, social and governance performance or sustainability attributes.
Impact investing	Investments made with the intention to generate positive, measurable social and environmental impact alongside financial returns.
Materiality	The significance of an issue to a company’s financial performance (financial materiality) or to society and the environment (impact materiality), often used to assess sustainability claims.

Impact of certification

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Avoiding harm

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Stewardship

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Truth in labelling

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Sustainability claims

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Climate claims

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Lifting standards for responsible investment

RIAA Certification

Glossary of terms

Term	Definition
Responsible Investment Standard	The standard used by RIAA to assess whether a product or service meets responsible investment expectations, including exclusions, stewardship, sustainability claims and labelling.
Guidance notes	Supplementary documents to the Standard that set out detailed expectations for specific areas such as stewardship, product labelling and climate claims.
Assessment notes	Technical documents outlining minimum requirements for specific certification areas (for example, Avoiding Significant Harm minimum requirements).
Certification directory	RIAA’s publicly available repository of certified products and services (previously known as Responsible Returns).
Exclusions	Investment screens that prevent exposure to specific industries or activities deemed harmful, such as gambling, alcohol production, palm oil production or supply-chain human rights violations.
Avoiding Significant Harm (ASH)	A certification category focused on fully excluding specified harmful activities from product portfolios. At a minimum, products must exclude producers of tobacco, manufacture of nicotine alternatives and tobacco-based products, controversial weapons and nuclear weapons. The Program recognises differing revenue calculation methodologies.
Stewardship	Active ownership practices including voting on shareholder resolutions, engagement (individual or collaborative) and advocacy to influence corporate behaviour in line with responsible investment goals.
Voting records	Documentation of how a fund votes on shareholder resolutions, used to demonstrate stewardship transparency.
Engagement outcomes	Evidence of how a fund engages with investee companies to influence environmental, social and governance practices, often disclosed in stewardship reports.
Sustainability claims	Statements about positive environmental or social positioning, such as “sustainable investing” or “positive tilt”.
SDG alignment	A subset of sustainability claims where products assert links to specific UN Sustainable Development Goals (SDGs). Certification assesses the strength of the claimed links and disclosures.
Product labelling	The use of responsible investment terms such as “sustainable”, “impact” or “leaders” in product names, labels, claims and marketing. Certification assesses substantiation and consistency.
Climate claims	Assertions related to addressing climate change, such as reduced carbon intensity, net zero targets, fossil fuel exclusions or climate transition strategies. Claims must be credible and verifiable.
Climate claims annex	A supplement to the Guidance Note – Product Labelling that outlines expectations for substantiating climate-related claims.
Spot checks	Periodic reviews conducted by RIAA to ensure certified products continue to meet requirements and accurately reflect their claims.
SMA / MDA	Separately Managed Accounts / Managed Discretionary Accounts, where advisers manage portfolios on behalf of clients.
KiwiSaver	New Zealand’s voluntary, work-based retirement savings initiative.
Superannuation	Australia’s mandatory retirement savings system.
ETF	Exchange-Traded Fund – an investment fund traded on stock exchanges that holds a collection of assets and typically tracks a specific index.
Greenwashing	The practice of making misleading or unsubstantiated claims about the environmental or ethical credentials of a product or service.
Certification symbol	The visual mark awarded to products and services that meet RIAA’s Responsible Investment Standard and all certification requirements, signalling credibility to investors.
Uplift	A required improvement or amendment imposed during certification to bring a product into alignment with the Responsible Investment Standard.
Conditional approval	Certification granted with conditions to be met within a specified timeframe (for example, updating disclosures or divesting holdings).
Net zero target	A time-bound commitment to reduce greenhouse gas emissions to net zero.
Carbon intensity	A measure of emissions per unit of economic activity or energy output (for example, per million dollars invested), used to assess climate-related performance.
Positive tilt	A portfolio strategy that increases exposure to assets or entities with stronger environmental, social and governance performance or sustainability attributes.
Impact investing	Investments made with the intention to generate positive, measurable social and environmental impact alongside financial returns.
Materiality	The significance of an issue to a company’s financial performance (financial materiality) or to society and the environment (impact materiality), often used to assess sustainability claims.

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