RIAA: Most Australians Expect their Investments to Be Made Responsibly

Australians are increasingly looking to align their investments with their values. This growing trend is reflected in the rising awareness of responsible investing, according to the Responsible Investment Association Australasia (RIAA). Their research shows that over three-quarters of Australians (78%) are now familiar with this approach. Awareness has risen significantly, from 67% in 2022 to just 50% in 2020.

What is Responsible Investing?

Responsible investing, or ESG investing (environmental, social, and governance), goes beyond financial returns. It considers the impact a company has on the environment, its employees, and society, alongside its financial performance. Investors choosing this approach aim to align their money with companies actively working towards a more sustainable future.

Responsible investing also intersects with faith-based investing. For example, Islamic finance follows specific guidelines outlined in Islamic law (Sharia). These guidelines often align with responsible investing principles, prohibiting investments in activities like alcohol production, gambling, or weapons manufacturing.

Report from Responsible Investment Association Australasia (RIAA)

A report by the Responsible Investment Association Australasia (RIAA), titled “From Values to Riches 2024: Charting Consumer Demand for Responsible Investing in Australia”, reveals a shift in Australian investors’ sentiment.

89% of Australians expect their Super or other investments to be invested responsibly. Similarly, a significant portion (more than four in five) say it is important to have a Super fund or other investment that positively impacts the world. Three-quarters of Australians would consider changing providers if their current fund did not align with their values.

Here are some additional highlights from the report:

• 65% of Australians would invest more if their investment positively impacted the world.
• 89% of Australians say it is important for their Super fund to commit to protecting human rights.
• 52% of Australians want to avoid investment in armed conflict.

This report paints a clear picture: Australians increasingly demand responsible investment options. They want their money to grow, but they also want it to be invested in a way that aligns with their values and contributes to a better future.

Start Your Investments Journey with Hejaz

At Hejaz, we understand the importance of aligning your investments with your values and beliefs. Whether it’s superannuation, investment fund, or ETF products, we employ a three-tier Sharia governance process to ensure Sharia compliance with our investments.

We invest in a wide range of assets, sectors, and regions while adhering to our strict investment screens. This diversification allows our members the opportunity to earn competitive returns from companies that meet Islamic standards.

Be the change, invest responsibly with Hejaz today!

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Source: https://responsibleinvestment.org/wp-content/uploads/2024/03/From-Values-to-Riches-2024_RIAA.pdf 

Disclaimer:
The information contained in this material is for informational purposes only and does not constitute financial advice. It is not intended to be relied upon as a substitute for professional advice specific to your individual circumstances.