Hot Issues
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Rising US interest rates, trade wars, the US midterm election results, etc
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Our Advent calendar for 2018
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Responsible and ethical investing
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What are the 3 biggest living expenses for households?
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Your Adviser and Behavioural Coaching
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Stop!! Don't do a paper Budget, use our online budgeting tools instead.
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Information needed to be the BBQ expert.
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Would you like to retire by 40?
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The property cycle and the economy
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How financial advice helps create wealth.
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7 money personalities you may identify with or want to avoid
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Are shares expensive?
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How's Australia doing statistically?
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Super investment options – what’s right for you?
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Here's how to lead a happier life
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What happened to all the worries about rising inflation and bond yields? Goldilocks, tariffs, Turkey & other things
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Is it better to buy an investment property or home first?
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Nine keys to successful investing
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This information will turn you into a fireside expert.
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How Australians will use their tax return
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Lessons from the blue zones: secrets of a long life
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Trumponomics and investment markets
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Tools for budgeting, cash flow, Super and more ….
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How much super should I have at my age?
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How tax deductible personal super contributions work
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The rise of the gig economy and side gigs (thanks to technology)
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Statistics for all Australians
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Watch out for tax scams
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After the Australian household debt and east coast housing booms
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Now’s the time for tax planning
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Why it pays to contribute to your partner's super
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Australia by numbers – Update
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How to deal with financial stress – nearly 1 in 3 affected
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Federal Budget 2018 – Overview
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Your Budget
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4 components of our 2018 Federal Budget
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US China trade war fears – Q & A
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Tools to help you manage your financial position are available on our site.
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7 ways to boost your super
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Australians reveal their priority goals
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Australia by numbers – Update
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Your retirement questions answered
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How to make money by turning your unwanted goods into cash
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Our website is really our digital office.
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Bitcoin – is it really for you?
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Spread your money, reduce risk
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Love and money? It’s not about control
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The pullback in shares - seven reasons not to be too concerned
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Australia. All you need to know to be the expert.
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Australian’s love affair with debt - how big is the risk?
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5 ways to keep a cool head in a falling share market
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2018 – a list of lists regarding the macro investment outlook
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Sports lovers enjoy better financial fitness
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Where Australia is at. Our leading indicators.
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The year that was and the year ahead
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Add some extra cash to your New Year
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New year, new financial resolutions
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Our Advent calendar for 2017
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Where are we in the global investment cycle?
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Australia's vital statistics
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12 ways to enjoy summer without spending a fortune
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One in three Aussies travel without protection
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Digital payment options could see you spend more this Christmas
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If you’ve always thought property prices only go up…
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Will Australian house prices crash?
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Where are we in the global investment cycle and what's the risk of a 1987 style crash?
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Money steps for women
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Resources on our site to help you, your family and your friends.
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Australian Dietary Guidelines and healthy eating chart (PDF)
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How to retire, your way
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Prepare for retirement without missing out today
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Be the boss of your cash
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The Australian economy bounces back again
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Should you lend money to family?
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Money mistakes people make in their 50s and 60s
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Australian Dietary Guidelines and healthy eating chart (PDF)
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Eight steps to improved cashflow... and lifestyle
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Powerful Budgeting, cash flow and Super Tools available on our site.
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5 ways Australians will use their tax return this year
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Australia's leading causes of death - ABS
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The threat of war with North Korea
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Six traits of Australians living the dream
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The break higher in the Australian dollar is likely to be limited
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Money can buy you happiness, you’re just spending it wrong
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Key Economic Indicators, 2017 – updated
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From Goldilocks to taper tantrum 2.0
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What’s your debt age?
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Doing a budget is a good idea but ....
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Planning is the key to making it financially
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What to do when you come into money
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Managing your money when you move in together
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Reduce your bills with these household items
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It pays to contribute to your partner's super
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How to cope with losing independence
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Transition to retirement income streams
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The Australian economy hits another rough patch
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Watch out for tax scams
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The three core pillars of this year's budget
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Federal Budget - 2017-18 - Overview
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Federal Budget - 2017-18 - Budget documents
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Make the most of the current super caps
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Five, four, three… it’s not too late to get more in super
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Super changes are coming
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What’s your debt age?
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Australian cash rate on hold
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Super changes this financial year - Dr Shane Oliver - video
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The door is closing on super’s current caps
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Is Donald Trump's honeymoon with investors over?
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Estate planning and why you need a super plan
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What does a comfortable retirement look like?
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Give your career a health check
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Super changes from July 2017
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Changes to the Age Pension assets test
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Keep your money safe over the silly season
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Looking ahead at 2017
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Review of 2016, outlook for 2017 - looking better despite the political noise
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Merry Christmas for 2016, a Happy New Year and a prosperous 2017.
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54.2 million worries
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Five tips for happy healthy ageing
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Thinking about managing your own super?
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Sending more to the tax office than you should?
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Government pulls back on proposed changes to super
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Market Update - What to consider when investing in a low return world
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Stop!! Don't do a paper Budget, use our online budgeting tools instead.
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Oliver's Insight - Megatrends
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Value of Advice
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A growing family doesn't have to blow the budget
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Blinded by optimism
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Thinking about managing your own super?
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The investment outlook - it's not all that bad!
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What’s your biggest obstacle to financial success?
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Ageing Parents
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Should you own the roof over your head?
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Be a senior entrepreneur on your own terms!
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Brexit and other key developments
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Brexit wins
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Commentary on major issues - AMP
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Five money habits for a happy financial year
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Remember to factor in parental subsidies at tax time
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Are grandparents giving too much?
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2016-17 Federal Budget - AMP
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2016 Budget in detail
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How (and why) to talk to your adult children about insurance
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Procrastination: Just do it. Eventually.
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Why Australian property won't collapse
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The Lucky Country holding up pretty well
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Have we reached the bottom?
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The evolution of the Chinese consumer
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Retirement rolls around faster than you think
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Heirlooms no more
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Initial market falls precede stronger returns - Shane Oliver
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Aged Care - Changes to Assessment of Rental Income
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New year, new start – are you ready for retirement?
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We wish you a Merry Christmas for 2015 and a Happy New Year
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Go easy on the plastic over Christmas
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Resolutions for a wealthy future
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The Australian dollar doing what it normally does - overshoot. Dr Shane Oliver
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How to manage volatility in a low return world
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The Australian economy - more help will be needed. Dr Shane Oliver
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Insurance through my super
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Four tactics to build an investment portfolio
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Help achieve your investment goals with dynamic asset allocation
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The Power of Budgeting
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Preparing for the time of your life
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A Super Loan for all reasons
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Making a smooth transition
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Budget 2015 - some professional opinions
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Australian Government - Budget 2015
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Achieving a comfortable retirement
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Is off-the-plan on the money?
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Should I take my super as a lump sum or not?
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Do you have a key person in your business?
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Tips for success in a competitive job market
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All you need to know about buying at auction
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To sell or not to sell?
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Saving in a material world
Responsible and ethical investing

What are they and what’s the difference?

       

 

Whether it’s the war on waste, human rights abuses, animal rights or climate change that is your issue of choice (or perhaps you’re concerned about all of them), more of us are taking an interest in making decisions with our money that reflect our values.

Recent research from the Responsible Investment Association Australasia (RIAA) shows that 92% of Australians now expect their super or other investments to be invested responsibly and ethically, and that four in five of us would consider switching providers if our current super or investment fund engaged in activities inconsistent with our values.i

But while the increased interest in responsible and ethical investing is undeniable, there’s still some confusion around what they actually mean.

Responsible and ethical investing explained

In simple terms responsible investing encompasses a range of investment styles and techniques that take into account environmental, social, governance (ESG) and ethical issues within the investment research, analysis, selection and monitoring process.

For example, funds might screen out companies or sectors due to controversial or unethical business practices or negative social impact (negative screening). Other investment strategies may focus on selecting companies or sectors with a stronger focus on sustainability drivers relative to their peers (positive screening).

Some common examples of factors that might typically be considered include:

  • Environmental: Waste, pollution, greenhouse gas emissions, clean technology products and services, environmental management practices.
  • Social: Workplace health and safety, labour relations and standards, community impacts, human rights.
  • Governance: Board independence and persity, executive pay and incentives, bribery, and corruption, conflicts of interest, shareholder rights.
  • Ethical: Tobacco, gambling, weapons, testing on animals, controversial medical research such as stem cell research, live animal exports.

The most widely used technique by fund managers is ESG integration, which involves the systematic consideration of ESG risk and return factors alongside financial considerations when making an investment decision.

There’s also impact investing where capital, in the form of your investment, is provided to a business which has the purposeful intention of generating a measurable, beneficial social or environmental impact, in addition to a financial return.

Increasingly fund managers are using a combination of these responsible investing techniques, creating a range of options in the market for customers seeking to line up their own values with their investment profile and appetite for risk.

How to invest responsibly and ethically

When it comes to investing your money – be it your super or other financial investments – it’s become increasingly easier to put your money where your mouth is.

According to RIAA, around 55% of all assets under professional management in Australia were invested responsibly at the end of 2017.ii

If you’d like to invest more responsibly or ethically it’s important to first consider which issue or issues are of the most importance to you, and how strongly held your convictions are.

Do you prefer avoiding certain industries (for example, the fossil fuel industry) or would you rather favour other industries (such as renewable energy, health-care)? Or perhaps you’re happier with an approach that selects companies that demonstrate the most sustainable characteristics within their industry sector?

What we’re doing at AMP

AMP Capital has been focussed on assessing the environmental, social and corporate governance performance of the companies we invest in since 2001.

In 2007 we signed on to the United Nations-backed Principles for Responsible Investment and we’ve recently completed an ethical pestment strategy in accordance with a new ethical framework and have sold all our investments in companies that manufacture tobacco, cluster munitions, landmines, biological and chemical weapons across our entire portfolio. We are also a founding signatory of global Tobacco-Free Finance Pledge.

AMP Capital is responsible for managing the underlying investments in AMP’s super products and publishes information on its website about its responsible and ethical investing practices, ESG investment insights, and responsible investment product offerings. For more information visit www.ampcapital.com/au/en/capabilities/responsible-investment

 

Author: Adam Kirkman
Head of Environmental Social Governance (ESG), AMP Capital

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i RIAA, From Values to Riches, Charting consumer attitudes and demand for responsible investing in Australia

ii RIAA, Responsible Investment Benchmark Report, 2018 Australia

 

© AMP Life Limited. First published November 2018