Australian Ethical riding the wave of ‘The Next Boom’

Phil Vernon

Australian Ethical has welcomed yesterday’s launch of a landmark report by the Future Business Council, which finds that Australia is poised to benefit from huge growth in sustainable business models.

The Next Boom: A surprise new hope for Australia’s economy? concludes that changing consumer preferences, government regulation and environmental necessity are the three main factors accelerating the global green business boom.

Commenting on the report, Mr Phil Vernon, Managing Director of Australian Ethical, said, “The Next Boom makes it clear that in business today, there is no need to compromise on ethics to deliver performance: you can achieve both. This is borne out by Australian Ethical’s own investments, which continue to outperform the market.

“We are part of a wave of businesses which are improving the world while achieving growth and delivering profits to stakeholders. This is the business model of the future, but it’s already operating today.”

The report points out that engaged consumers are making a difference to the economy, with sustainable options outperforming the competition. For example, organic food sales have been growing at over 80 per cent a year, compared to just 6 per cent for food retail as a whole.

This is reflected in Australian Ethical’s growth, with funds under management increasing by 65% in the last 3 years to pass $1 billion and the super fund growing to more than 25,000 members.

Australian Ethical is a foundation member of the Future Business Council, having recognised the need for a collaborative approach for the business community to achieve positive change.

“We are facing critical challenges as a society, with climate change arguably the most pressing one. None of these big issues can be addressed by governments, businesses or individuals alone – we need a collaborative approach which mobilises all three. The Future Business Council is playing an important role in leveraging the transformative power of the business community,” Mr Vernon said.