New Responsible Investment Report reveals financial markets in Australia are embracing ESG and responsible investment
Altius Asset Management has been named a Responsible Investment Leader by the Responsible Investment Association Australasia (RIAA) in its landmark annual study. This recognises our commitment to responsible investing and attributes as an investment manager. The Responsible Investment Benchmark Report 2023 study shows that the portion of Australian assets managed using a rigorous, leading approach to responsible investment reached 36% totalling $1.3 trillion in 2022.
Financial markets in Australia are fully embracing ESG and responsible investment. The report shows 93% of the professionally managed funds worth $3.3 trillion are managed by investors that have made public commitments to responsible investment, revealing a market in transition toward a new state of maturity, whereby only 36% or $1.3 trillion of these total assets are being managed in a way that can demonstrate a leading approach to responsible investment
Global markets have moved rapidly to lift expected standards of practice in responsible investment in the last two years and Australia is no exception. A new threshold for Responsible Investment Leaders has led to 54 fund managers being named as Responsible Investment Leaders, and 23 fund managers awarded the new Responsible Investor designation by RIAA.
Overall, 77 fund managers have been able to attain the high standards of responsible investment against RIAA’s scorecard this year as compared to 74 in 2021. The performance of RIAA certified funds stayed on par with benchmarks over the medium term, but saw a slight decrease as the mining and energy sector, which many responsible investors are under weight, boomed in 2022.
The 2023 report has revealed many advances in responsible investment, with money flowing to outcomes for people and the planet as investments into sustainability themes increased substantially in 2022, reaching $235 billion (from $161 billion in 2021). Likewise, the impact investment sector nearly doubled from $30 billion in 2021 to $59 billion in 2022. Norms-based screening is soaring in popularity, increasing by 85% to $255 billion as responsible investment managers mature and adhere to global norms like the Paris Agreement and the United Nations Declaration on the Rights of Indigenous People. Natural capital is emerging as an increasingly popular positive screening theme, with 46% of survey respondents screening for biodiversity preservation and conservation, while climate change-related issues continue to be a priority.
RIAA’s Benchmark Report is the most comprehensive review of the responsible investment sector in Australia, with the 2023 report reviewing the investment practices of 272 investment managers.
Read the report here: Benchmark Report - Responsible Investment Association Australasia (RIAA)
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