Stockspot analysis has named the top 10 suburbs across Australia that have the highest proportion of sustainable investors.
The investment firm examined more than 14,000 of its clients who are investing in its sustainable portfolios, which include companies that have been screened for their ESG practices.
Stockspot highlighted the bayside suburb of Sandringham in Victoria as having the highest proportion of sustainable investors at 65 per cent, followed by Collingwood, also in Victoria, at 56 per cent.
The top 10 suburbs in Australia with the most sustainable and ESG investors are:
| Suburb | Proportion of sustainable investors |
| VIC: Sandringham | 65 per cent |
| VIC: Collingwood | 56 per cent |
| VIC: Nunawading, Forest Hill | 54 per cent |
| VIC: Kensington, Flemington | 46 per cent |
| SA: Woodville, St Clair | 45 per cent |
| NSW: Summer Hill | 44 per cent |
| VIC: Mt Martha | 44 per cent |
| VIC: Fitzroy North, Clifton Hill | 43 per cent |
| NSW: Newtown | 39 per cent |
| NSW: Glebe, Forest Lodge | 38 per cent |
“Despite market volatility, investor interest in ESG-focused portfolios remains robust, particularly among Australians who prioritise both financial growth and alignment with personal values,” Stockspot chief executive Chris Brycki told Money Management.
“Today, many Australians today view environmental sustainability as a key aspect of their investment decisions, and asset managers have adapted by integrating sustainable practices into their strategies.
“Although sustainable investing has encountered some challenges this year, we continue to see investors redirecting funds from traditional investments towards ESG options that reflect values like climate action and clean energy,” he said.
Last month, Money Management covered whether sustainable funds are losing traction in Australia as fund managers become concerned about greenwashing and existing funds suffer outflows.
Dugald Higgins, head of responsible investment and sustainability at Zenith Investment Partners, said: “Markets (and managers) hate uncertainty. Challenges like evolving disclosure frameworks, greenwash regulations and geopolitical issues make attaining sufficient clarity difficult. Many firms are hesitant to take a strong stance on products until they understand what a ‘new normal’ looks like.”
According to Morningstar, sustainable funds enjoyed a positive rebound in the third quarter of 2024 as Australian and New Zealand investors allocated US$640 million, reversing outflows of US$555 million in the previous quarter.
Stockspot also identified the top 10 Australian suburbs with the highest average balance invested in exchange-traded funds (ETFs), which found Brighton in Victoria on top at $355,126.
