Ethical Super

Research shows that the vast majority of Australians increasingly want – and expect – their superannuation to be invested responsibly and ethically.

According to research commissioned by the Responsible Investment Association Australasia (RIAA), four out of five Australians would consider changing super funds if they felt their current fund didn’t align with their values and moral compass.

And consumers are walking the talk, with assets overseen by ethical super funds soaring 30% in 2020 to $1.28 trillion – accounting for 40 cents of every professionally managed superannuation dollar. (Source: RIAA)

Put simply, people are wanting to feel good about their investments while building their superannuation nest egg.

But with so many ethical super funds to choose from, how do you find the super that aligns with your ethical investing views – and performs well at the same time?

Our guide will help you navigate the field of ethical investment options, so you make the right investment decision.

What is Ethical Super

Ethical superannuation funds focus on industries and investments that are ethically responsible – and screen out investments that don’t meet certain environmental, social and governance standards.

An ethical super fund may support:

• ‘Clean’ renewable energy
• Education
• Health and wellbeing
• Telecommunications
• Property
• Recycling, waste management and water treatment
• Sustainable agriculture management
• Sustainable transport.

In short, super funds invest in companies that have socially, environmentally and other beneficial priorities. At the same time, they exclude investments in companies whose products or services may have harmful impacts on people or the planet.

Like standard super investment options, ethical superannuation options can sit anywhere on the risk spectrum – from conservative to high growth.

Each ethical super fund will have its own interpretation of the values it wants to protect or promote, so it is important to read the company’s Product Disclosure Statement (PDS).

What is considered unethical?

Ethical superannuation funds will exclude investing in companies that may involve:

• Animal cruelty
• Fossil fuels
• Gambling
• Chemicals
• Armaments
• Tobacco and alcohol
• Nuclear energy
• Human rights abuse.

The best ethical super funds

So how do you know where to start looking for an ethical super fund? There are many trusted ethical super funds in Australia that are a good starting point for your research.

Getting started

Responsible investing isn’t complicated, but it does take some time and effort to work out the best ethical super funds that sit well with your moral compass.

MBA Financial Strategists have been helping people find the right superannuation for their individual needs since 1985.

Contact us

If you would like to discuss ethical superannuation options with a financial planner in the practice there are a couple of contact options, you can phone the office on |PHONE| or alternatively, you may prefer to make an appointment with a financial adviser of your choice by using our online booking link.

Sources: moneysmart.gov.au; https://responsibleinvestment.org; futuresuper.com.au; australianethical.com.au

MBA Financial Strategists Pty Ltd ABN 13 008 285 756 is an Authorised Representative and Credit Representative of AMP Financial Planning Pty Limited, Australian Financial Services Licensee and Australian Credit Licensee. This article contains information that is general in nature.  It does not take into account the objectives, financial situation or needs of any particular person. You need to consider your financial situation and needs before making any decisions based on this information.