Letter to the Editor: The West Australian – ‘Sustainable Investment’
Re: ‘Retirees’ Voice: Sustainable Investment a hit with many Retirees’ 16/11/17
(see: retirees-voice-lean-green-superannuation-the-popular-choice-for-retirement-savings)
Regarding the ‘Retiree’s Voice’ statistic that more than 70% of respondents think that sustainable & ethical investment is important.
Referring to so called ‘sinful stocks’ is an outdated practice, both in Australia and globally, due to the wide range of research confirming that net performance is as good, or better, in ethically screened portfolios. A recent study compiled by Oxford University which referred to more than 200 different sources found a remarkable correlation between diligent sustainability business practices and financial performance over a period of time. Closer to home, the Responsible Investment Association of Australasia (RIAA) releases an Annual Benchmark Report with similar findings of outperformance over short, medium and long term timeframes.
There isn’t one simple definition of what constitutes ‘ethical’ or ‘sustainable’, because it varies according to the individual. There is an array of investment options available now, reflecting the spectrum of issues that investors find important – for example, whilst most investors want to exclude fossil fuels (negative screen), some want to take it a step further and include renewable energy (positive screen). I recommend seeking advice from one of the many Financial Advisers certified by RIAA to find out more.
With most Australians making conscious decisions to live sustainably, it doesn’t make sense to ignore our retirement savings, which for many is their biggest asset outside the family home. The huge proportion of respondents confirming that they would prefer to invest in line with their ethics confirms what we always suspected – investors would prefer that their money was working to make the world a better place, rather than supporting unethical or unsustainable practices.
James Baird
Director, JustInvest Financial Planning
Ethical Investment Advisers Authorised Representative 322583
Ethical Advisers’ Co-op (WA)
Refer:
https://responsibleinvestment.org/resources/benchmark-report/
https://hbswk.hbs.edu/item/corporate-sustainability-first-evidence-on-materiality
