ABSTRACT

In Australia, asset owners and asset managers representing more than 50 per cent of total funds under management (FUM) support responsible investment. 1 According to the Responsible Investment Association Australasia (2013), responsible investment has become a vibrant sub-sector of the finance industry across superannuation, funds management, banking and wealth advice. Testament to this is a broad range of specialist products and ESG services that actively take environmental, social and corporate governance risks into account in investment decision-making. Furthermore, Australia’s specialist or core responsible investment funds have largely and consistently outperformed the broader market over the short, medium and long term, although bearing in mind they still only represent just above two per cent of total assets under management in Australia.