Australian responsible investment funds jump to $ 878 billion


SYDNEY, September 1 (Reuters) – Australian funds managed by certified responsible investment funds rose by nearly a third to reach A $ 1.2 trillion ($ 877.6 billion), or about 40% of the sector, according to a report released Wednesday.

This pales compared to the 71% jump in funds that claim to be responsible investors but did not hit the minimum of 15 out of 20 points on a scorecard.

Almost nine in ten dollars in the AU $ 3.1 trillion nationally managed fund industry were managed by self-proclaimed responsible investors, up from 61% a year earlier, according to the Responsible Investment Association Australasia (RIAA) report. .

None of the funds got 20 out of 20, according to the report.

As “greenwashing”, a practice by which companies embellish their corporate, social or environmental credentials, has increased in 2020, investor pressure has resulted in an acceleration of the “net zero” emissions targets of Australian companies.

Despite Australia’s staggered refusal to commit to a goal of net zero emissions by 2050 alongside the rest of the world, more than half of the top 100 listed companies had pledged to reach a goal of net zero , up from a fifth a year ago, according to Macquarie. Group (MQG.AX).

Under the pressure of decarbonization, companies are also turning to mergers and acquisitions to achieve these goals, while accelerating their use of so-called “sustainability-linked” debt.

“The reality remains that, despite such large sums of capital committed to responsible investment in Australia and abroad, we remain far from on track to meet the commitments of the Paris Agreement,” said the RIAA report.

Certified responsible investment funds disclosed their entire portfolio, actively targeted sustainability outcomes and supported shareholder social and environmental resolutions, the report adds.

($ 1 = 1.3674 Australian dollar)

(This story corrects the proportion of the third paragraph to dollar amounts, not managers)

Editing by Jacqueline Wong

Our Standards: Thomson Reuters Trust Principles.

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