Advisers need to step up RI offerings



There is a desire among investors to fight climate change, especially in the face of government inaction, and advisers need to step up their offerings of responsible investment (RI) and ethical products, Australian Ethical believes.
Responding to the Responsible Investment Association of Australia's (RIAA) latest report, Australian Ethical said as the core RI segment grew by 65 per cent in one year and was now worth $51.5 billion, the finance sector needed to get serious about how it responded to climate change.
Australian Ethical managing director, Phil Vernon, said investors were moving their money to asset managers who paid attention to the environment and social impact of their investments.
"Investors want to ensure that asset managers are mindful of minimising the risks that climate change poses to their investments," he said.
Australian Ethical also said issues such as human rights and gambling were also attracting investors.
"We use a negative screen to rule out investments that harm the environment, people or animals, as well as a positive screen to invest in companies that improve them," Vernon said.
"This holistic approach resonates with a growing number of conscious consumers who want to know that their money is being put to good use, in a way that aligns with their values."
Recommended for you
Licensing regulation should prioritise consumer outcomes over institutional convenience, according to Assured Support, and the compliance firm has suggested an alternative framework to the “licensed and self-licensed” model.
The chair of the Platinum Capital listed investment company admits the vehicle “is at a crossroads” in its 31-year history, with both L1 Capital and Wilson Asset Management bidding to take over its investment management.
AMP has settled on two court proceedings: one class action which affected superannuation members and a second regarding insurer policies.
With a large group of advisers expecting to exit before the 2026 education deadline, an industry expert shares how these practices can best prepare themselves for sale to compete in a “buyer’s market”.