For decades, Australian Ethical Investments has been at the forefront of ethical superannuation, offering investors a chance to align their values with their financial decisions. In a world where the term ‘ethical’ is often tossed around as a marketing ploy, Australian Ethical stands out for its unwavering commitment to ethical investing. Established in 1986, it is considered one of the pioneers of dedicated ethical super funds in Australia.
Unlike many funds that merely pay lip service to ethical investing, Australian Ethical has a long-standing ethical charter that shapes all its investment decisions. This comprehensive approach goes beyond the standard ESG frameworks, ensuring that investments are in line with investors’ values. The fund employs rigorous ethical screening, excluding industries like fossil fuels, and actively seeks out investments that have a positive impact on society and the environment.
One of the standout features of Australian Ethical is its certification as a B Corporation, showcasing its commitment to ethical practices and transparency. The fund focuses on impact investing, selecting investments that not only avoid harm but actively contribute to solving social and environmental issues. Additionally, Australian Ethical emphasizes transparency and stewardship, engaging with the companies in which it invests to promote responsible practices.
While Australian Ethical goes above and beyond in its ethical commitments, there are other funds that offer a lighter touch for investors seeking to align their values with their super. Funds that follow an ESG framework, like Aware Super, provide a middle ground, considering ethical principles alongside financial returns. Aware Super offers a range of investment options that balance ethical considerations with performance, giving investors flexibility in how they approach ethical investing.
When it comes to performance, Australian Ethical has a track record of delivering solid returns while staying true to its ethical principles. The fund focuses on sectors like renewable energy, healthcare, and education, offering investors the opportunity to support industries that align with their values. Similarly, Aware Super has managed over $170 billion in retirement savings for Australians, delivering competitive returns while maintaining a commitment to ethical investing.
Ultimately, the choice of super fund comes down to individual preferences and values. Whether investors opt for a fund like Australian Ethical that prioritizes a strict ethical framework or a fund like Aware Super that balances ethical considerations with performance, the key is to align investments with personal values. By choosing a fund that reflects one’s values, investors can not only secure their financial future but also contribute to a more sustainable and ethical world.
🔗 Reddit Discussions
- TIL the Norwegian government pension fund has over 1.7 trillion US dollars (~325,000 per citizen). This is 1.5% of the world’s listed companies, the result of decades of investing oil revenues. Some companies can’t be in the portfolio due to ethical concerns, e.g. Lockheed Martin and Philip Morris.
- Ocasio-Cortez: “This blows my mind: House Ethics Rules prevent me from receiving a $100 gift card, or crashing at a place as I wait for rent $, but somehow allow members w/ investment portfolios to write laws that will personally enrich them $1000s in their own stocks; potentially millions.”
- [Chau] “Nine months ago, the Dallas Mavericks were in the NBA Finals….Nine months later, the team has been reduced to a pile of rubble, an object of pity. …In one month, Harrison’s entire vision of the team’s next few seasons has completely disintegrated.”