Look on the good side
Money Magazine Australia|March 2022
Investors who want to back their values with their cash need to make sure the ESG label does what it says
SUSAN HELY
Look on the good side

How responsible do you want your investments to be? If you have strong views on issues such as climate change, tobacco, weapons, preserving the rights of First Nations people, harmful mining practices, nuclear power, gambling, human rights abuse and alcohol, you can put your money where your mouth is.

You can select a manager that ditches the sin stocks and selects the companies that line up with your values. Or you can pick a manager that is actively forcing companies to change through its engagement with them about their exposure to these issues.

Just as you vote for the political candidate who speaks to what is important to you, you can use your superannuation and investments to reflect your personal views. Investing is one direct route to boost companies with low carbon emissions and shun the companies emitting loads of greenhouse gases.

There is a smorgasbord of responsible investments in Australia. It is growing too, particularly as the world struggles with the devastating effects of climate change. It has become front of mind for many people. In fact, responsible investments grew in Australia by $298 billion to $1,281 billion in 2020, according to the Responsible Investment Association of Australasia (RIAA).

While I use the term responsible, there are other labels, including green, ethical, sustainable as well as environmental, social and governance (ESG) factors.

Esta historia es de la edición March 2022 de Money Magazine Australia.

Comience su prueba gratuita de Magzter GOLD de 7 días para acceder a miles de historias premium seleccionadas y a más de 9,000 revistas y periódicos.

Esta historia es de la edición March 2022 de Money Magazine Australia.

Comience su prueba gratuita de Magzter GOLD de 7 días para acceder a miles de historias premium seleccionadas y a más de 9,000 revistas y periódicos.

MÁS HISTORIAS DE MONEY MAGAZINE AUSTRALIAVer todo
An outrageous, beautiful monopoly
Money Magazine Australia

An outrageous, beautiful monopoly

Telstra's mobile business is a cash machine with few competitors, giving it the highest returns in the world.

time-read
4 minutos  |
July 2024
Drop the anchor to judge value
Money Magazine Australia

Drop the anchor to judge value

Buying and selling decisions should be based on where a stock price is going, not where it has been.

time-read
3 minutos  |
July 2024
Powering the AI boom
Money Magazine Australia

Powering the AI boom

Beyond the software and chipmakers, where will the energy come from?

time-read
3 minutos  |
July 2024
Get into life
Money Magazine Australia

Get into life

Tucked inside super are products that can protect you from life's inevitable uncertainties.

time-read
5 minutos  |
July 2024
Paths to home ownership
Money Magazine Australia

Paths to home ownership

Taking the road less travelled can sometimes deliver unexpected benefits.

time-read
5 minutos  |
July 2024
Sold! Quick ways to add value
Money Magazine Australia

Sold! Quick ways to add value

Small, strategic changes can have a big impact on the look and feel of your home. And get you a better price on auction day.

time-read
5 minutos  |
July 2024
Money lessons the kids need to know
Money Magazine Australia

Money lessons the kids need to know

Your children can learn a lot from your past money mishaps. Here are eight financial conversations I have had with mine.

time-read
4 minutos  |
July 2024
Property-investing rules: are they likely to change?
Money Magazine Australia

Property-investing rules: are they likely to change?

The pressure for the government to curb the tax benefits of tax concessions, such as negative gearing and the capital gains tax discount, is unrelenting. Most recently, independent senators David Pocock and Jacqui Lambie proposed five options for paring back investment property tax concessions, with savings to the Federal budget of up to $60 billion over the next decade.

time-read
3 minutos  |
July 2024
What's love got to do with it?
Money Magazine Australia

What's love got to do with it?

A rollercoaster of emotions could be driving poor crypto behaviour.

time-read
3 minutos  |
July 2024
Are we ready to be cash-free?
Money Magazine Australia

Are we ready to be cash-free?

Saying goodbye to our piggy banks too soon could leave small businesses in the dark when problems arise.

time-read
2 minutos  |
July 2024