How your ideology and investments can mix
The world has woken up to ethical investing. Businesses, consumers and investment funds are increasingly striving to make a positive impact on our planet and the people living on it.
Driven by a new generation of ideological investors, growing awareness of social and environmental issues, and the promising performances of ethical funds, it’s now easier than ever to align your values with your investments.
Green is the new black
Ethical investing is coming of age. With a growing awareness of climate change and broader environmental, social, and governance (ESG) issues, investors are much more discerning when it comes to what their money is supporting. These days, there are more ways to invest ethically, responsibly, and sustainably than ever before. Funds like Cruelty Free Super are taking a more proactive approach to investing in companies that have a positive impact on society and the environment, or avoiding ones that don’t.
And the numbers add up. According to the Responsible Investing Benchmark Report 2020, most Australians expect their superannuation or other investments to be invested responsibly and ethically. In the past three years, it’s been reported that investments in funds with a ESG considerations have quadrupled to well over $600 billion.
Around the world, ethical investing and ESG is clearly in a boom. Ethical super funds are increasingly gaining popularity, and there are more opportunities than ever to incorporate your ideologies into your investments.
What does ethical investing mean to you?
Ethical investing means different things to different people. It could mean avoiding companies that have a negative social or environmental impact. This is called ‘negative screening’ and it might mean screening companies involved in animal cruelty, coal-seam gas, gambling, tobacco, detention centres, or uranium mining.
You could also take a more proactive approach and invest in companies you believe have a positive social or environmental impact. This is called ‘positive screening’, and would involve purposefully selecting companies doing good things – like recycling, waste management, renewable energy, or animal rights.
If you’re like most of us, and you don’t have the expertise or time to analyse and select companies yourself, you can invest in an ethical listed investment company (LIC), or an exchange-traded fund (ETF) with a basket of assets picked by a professional manager.
When it comes to your superannuation, it’s about looking into funds that call themselves ethical, sustainable, or socially responsible. But even then, it pays to take your time, do some solid research, look into the performance of each fund and what they support, and make sure your ideologies match theirs.
Choosing the cruelty-free option
If you’re ready to align your super with your ethical values, Cruelty Free Super might be your answer. Australia’s first vegan-friendly, ethical super fund means no more investments in animal testing, farming, eating, hunting, or exploiting. Instead, Cruelty Free Super invests in positive industries like education, recycling, and renewable energy. They also screen out all companies with involvement in running or financing detention centres.
We all have superannuation, which means we’re all investors. Importantly, this means we all have a choice in where our investments go and what they support.
We love writing about cruelty-free investing and creating a kinder world, but please be aware that the information provided is general in nature, not personal or financial advice. When we discuss companies, it’s not a recommendation to buy, hold, or sell shares in that company. If we mention returns, please remember that past performance isn’t a reliable indicator of future performance. Before acting on any information provided, you should consider if it’s appropriate to you.