Responsible investment has become a major part of the investment landscape across Australasia. The RIAA’s Annual Responsible Investment Benchmark Report 2021 found that 40% of all professionally managed investments in Australia are now managed using a responsible investment approach.
More specifically for impact investing, the impact investment market has mirrored global trends in Australia, more than tripling between 2017 and 2019 to AU$19.9 billion, according to RIAA research.
The same research states that Australian investors indicate they would like to increase their allocation towards impact investments more than fivefold to AU$100 billion over the next five years. Across the Tasman, impact investing activity in New Zealand is also on a steep rise, growing over 13 times from NZ$358 million in 2018 to NZ$4.74 billion in 2019.
This growing interest in responsible investment across the market has resulted in significant growth in investment products and opportunities to invest.
Research from RIAA (2020), From values to riches- Charting consumer attitudes and demand for responsible investing in Australia 2020; and RIAA & Mindful Money (2019), Responsible investment New Zealand consumer study 2020
“I see sustainability as something that’s particularly important to myself. I see responsible investing as a way to help people create change a bit faster than perhaps Governments can. I also see private capital as leading the way in the change we want to see in the world, and a lot of clients resonate with the fact they can build wealth in a way that feels good for them”
– Kevin McDonald, CFP, Principal Adviser & Director of Future Focus Financial Planning.