Maria Loyez

Australians are increasingly turning to responsible investing, with 88% expressing a desire for their superannuation and other investments to be invested ethically, up from 83% in 2022, according to the latest report by the Responsible Investment Association Australasia (RIAA).

The report, From Values to Riches 2024: Charting consumer demand for responsible investing in Australia, highlights a growing shift towards sustainability and social responsibility with 76% of Australian’s saying they’d consider moving their money to another provider if their current fund didn’t align with their values.

“We can see that Australians are keen to invest in line with their values and delighted that this long-term trend continues, however the discrepancy between Australians’ desire to invest ethically and the reality of where their money is invested is concerning. This fact is not lost on consumers,” said Australian Ethical Chief Customer Officer Maria Loyez.

With 78% of people saying they’re concerned about greenwashing, the report reveals a lack of confidence in identifying truly ethical financial products and this risks causing inertia.  This paradox underscores the pressing need for greater transparency around responsible investment products in the market.

“It’s not at all surprising to see this significant demand for responsible and ethical investments among Australians. This report highlights not only a growing awareness of the impact of our financial choices but also a clear call for action from the industry. As consumers seek more transparency and alignment with their values, it’s crucial for financial institutions to step up and offer a wider range of responsible investment options, backed up by robust processes and third-party verification,” said RIAA co-CEO Estelle Parker.

Of the top seven ethical concerns Australians have about where their money is being invested, animal cruelty tops the list with 66% of respondents saying they want to avoid it, followed closely by human rights abuses at 60%.

Other investments Australians want to avoid are companies whose operations include gambling (56%), tobacco (55%), weapons and firearms (55%), tax avoidance (55%), and non-medical animal testing (54%). These concerns underscore the growing importance of financial products being transparent about the extent to which they truly align with their customers’ values and ethical principles.

“Despite animal cruelty being the top issue for consumers in the report only 11% of Australia’s superannuation and investment sector is invested in funds that screen out investments in companies that conduct animal testing. Australian Ethical doesn’t invest in companies that use animal research for cosmetic purposes and for healthcare purposes where we assess they are not meeting minimum expectations, and forms one of our strategic areas of focus for stewardship.” said Ms Loyez.

“We think it’s critically important that Australians have confidence in their investments, because not all so-called ESG funds are created equally. The industry needs to offer greater transparency if we are to gain the trust of investors who genuinely want to see their investments do good in the world.”

Only 5% of Australians reported having negative perceptions towards responsible investing, with only 5% now rejecting it outright, down from 9% in 2022. Additionally, some 65% of respondents say they would be willing to invest more if their funds contribute to a better world.

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Maria Loyez

Leading ethical investor Australian Ethical has awarded $500,000 in grants to 10 not-for-profit enterprises working on a range of projects trialling new approaches to solve climate change issues including designing clean energy solutions, empowering people to demand climate action, biodiversity protection, and growing female-led enterprise.

The full list of Visionary Grants recipients includes Rewiring Australia, Australian Council of Social Service (ACOSS), Tomorrow Movement, Environmental Defenders Office, Martuwarra Fitzroy River Council, Great Southern Reef Foundation, Gudanji For Country, Love Mercy Foundation, Pollinate Group, and ActionAid Australia.

ACOSS’s funding will go towards conducting a heat survey that will aid in identifying 1.8 million low-income households in Australia that will not be able to afford the transition to renewable energy without support. 

The Environmental Defenders Office’s ‘Fossil Fuel Tracker’ monitors fossil fuel projects in the Australian regulatory pipeline, providing concerned citizens with the legal resources they need to take effective climate action and protect the places they love.

The Gudanji For Country project is working to preserve knowledge being lost due to climate change and extractive industries, e.g. gas exploration. The work will document current flora, fauna and sacred sites at risk to protect Country and establish a site for future research and collaboration.

Each year Australian Ethical allocates 10% of its profits^[1] to fund initiatives that drive positive outcomes for the planet, people and animals. More than $9 million has been awarded to grant recipients since 2000.

Australian Ethical Chief Customer Officer Maria Loyez says this year’s Visionary Grants recipients span a wide range of diverse and important projects and initiatives.

“We believe that a sustainable planet underpins all of Earth’s systems and allows for people and animals to thrive; that’s why we invest to earn returns for members while doing good by people, animals and planet, but through the Foundation we also seek to unearth and fund high impact charities driving solutions addressing climate change, and we’re really excited by the quality of this years’ recipients.

“Of course ethical investing isn’t philanthropy, but our investors and members can be assured that as their nest egg grows, the Australian Ethical Foundation will be supporting people and projects such as this year’s deserving recipients.

“I think that’s another reason for our members to feel good and know their money is working for the benefit of many as well as long-term returns.”

This year, the Australian Ethical Foundation is again inviting its superannuation members and investors to vote for their favourite initiative. The People’s Choice Visionary Grant recipient with the most votes will receive an additional $10,000.

The Visionary Grants recipients include:

• Rewiring Australia
• Australian Council of Social Service (ACOSS)
• Tomorrow Movement
• Environmental Defenders Office
• Martuwarra Fitzroy River Council
• Great Southern Reef Foundation
• Gudanji For Country
• Love Mercy Foundation
• Pollinate Group
• ActionAid Australia

———

[1] after tax and before bonus

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Maria Loyez

Switching your superannuation or investments to an ethical fund delivers one of the largest impacts that an individual can make towards reducing their carbon footprint, according to a new whitepaper published by Australian Ethical yesterday.

Financial advisers have reported a growing appetite from their clients to invest responsibly, with a recent survey showing 52 percent of clients in 2022 requested that environmental issues be considered for their portfolios. Renewable energy, climate change and reducing carbon emissions were the three most recurring themes in these conversations.1

A little goes a long way: how to reduce your carbon footprint includes research from the UTS Business School that measures and ranks the most effective actions that individuals can take to fight climate change, and Lonergan Research provides insights on Australians’ attitudes towards climate change.

Switching $50,000 of your super or investments to a responsible fund with a low carbon footprint was ranked third in a wide list of actions that clients can take to reduce their individual carbon footprint, behind only installing solar panels and switching to a renewable energy plan.

Surprisingly, the research revealed that only two in five Australians identify as an investor, despite 86 percent having their retirement savings invested in a superannuation fund.

Taking a close look at super fund holders, one in five (19 percent) haven’t switched funds due to concerns about greenwashing, a figure which increases for high value investors, and one in four (25 percent) say they do not understand the impact super funds and investments have on climate change, and this holds them back from switching.

Chief Customer Officer, Maria Loyez commented on the findings, “Australians care deeply about fighting climate change, so much so that 96 percent of them are already taking action to reduce their carbon footprint.  More and more Australians want their capital invested in line with their personal values, and many of them are looking to their advisers on how to do this.

“Many people are not sure about the amount of CO2e emissions generated through various everyday actions and are unaware that investing their superannuation in an ethical fund can have a significant impact by directing money away from companies that are contributing to climate change.

“When enough people invest responsibly, this collective action can act as a powerful signalling mechanism for change in the industry whether that’s through public pressure or shrinking access to capital and insurance.”

Australians on average produce a staggering 15.4 tonnes of CO2e per person each year, which is among the highest in the world, and more than seven times the two tonnes of CO2e per person needed to reach in order to prevent catastrophic carbon change.

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Maria Loyez

Four in five Australians expect their money in super, banks and other investments to be invested responsibly and ethically, but financial service providers need to do a better job of meeting expectations, with 72% of the population saying they are concerned about greenwashing, according to a new consumer study from the Responsible Investment Association Australasia (RIAA).

The study, From Values to Riches 2022: Charting consumer demand for responsible investing in Australia, finds that Australians are getting more serious about aligning their money with their morals, with three-quarters (74%) of Australians considering moving to another provider if they found out their current fund was investing in companies engaged in activities inconsistent with their values. At the same time, the appetite for ethical and responsible investments continues to grow, with the number of Australians already investing responsibly up 28% from 2020 (to 17% of the population).

“Australians are demanding more transparency from their providers, with 75% wanting to know which companies their super fund, bank or other investments are invested in. They are attuned to the threat of greenwashing, and it is holding many people back, particularly when it comes to switching to an ‘ethical’ bank,” said Simon O’Connor, CEO of RIAA.

“Independent verification of sustainability claims is becoming key to winning trust. Three-quarters of Australians say they would be more likely to invest in responsible investment products that have been independently certified by a third party.”

Corin Millais, Head of Socially Responsible Banking at Teachers Mutual Bank Limited agreed. “Australians are on the money to call out greenwashing in finance. Accreditations like RIAA Certification and B Corp give substance to the sustainability claims finance managers tout, making it possible for customers to sort through the wash.”

O’Connor added, “We continue to see Australians recognise that doing good can often mean doing well, with almost two-thirds (64%) of people agreeing that responsible and ethical super funds and investments perform better in the long term.

“The bar is raising for financial advisers. The number one expectation Australians now have of financial advisers is to be knowledgeable about responsible investment (64%, an increase from 54% in 2020) overtaking the prioritisation of investment returns for the first time (58%),” said O’Connor.

The vast majority of Australians are giving the finance sector the green light to act on climate change, with five out of six believing it’s important their super fund or bank commits to reducing greenhouse emissions (84%), sets targets for emissions reductions (83%), and 81% want to see them pledge to achieve net zero by 2050.

But the ‘S’ in ESG is also of increasing interest – three-quarters (74%) of Australians say social issues are important when they think about investing their money, up from 64% in 2020.

Aside from climate change, there is a mismatch between the social and environmental issues consumers are most concerned about and the products on offer. For example, two-thirds of Australians (67%) want to avoid animal cruelty, testing, and animal products while only 32% of investment providers offer such products. Nearly two-thirds (63%) of Australians also want to avoid investments that violate human rights, while only 39% of responsible investment providers deliver products that meet this criterion.

Maria Loyez, Chief Customer Officer at Australian Ethical said, “As this important report shows, Australians are opening their eyes to the power of their money and where it’s invested. This is nothing short of a seismic shift that investment managers cannot afford to ignore. As this report says, Australians can spot greenwash and will only reward those companies that are truly committed to a better future.”

Compounding crises over the last few years like the COVID pandemic, the destruction of Indigenous cultural heritage sites and extreme weather events have fuelled awareness of responsible investing, and now more than two-thirds (67%) of Australians know or have heard of responsible or sustainable investing, up from 50% in 2020.

From Values to Riches 2022: Charting consumer demand for responsible investing in Australia, supported by Teachers Mutual Bank Limited and Australian Ethical, gauges consumer awareness, practices, and attitudes towards ethical and responsible investments in Australia, and surveyed 1,097 Australians aged 18 and over in January 2022.

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Marion Enander (left) and Maria Loyez

Australian Ethical Investment Limited (ASX: AEF) has appointed a new Chief Customer Officer and Chief Strategy & Innovation Officer. The leading ethical fund manager, which achieved gender parity at Board level in 2018, now has full gender equality in its senior management team as well.

Maria Loyez joins as Chief Customer Officer from Volt Bank with more than 20 years’ international and strategic commercial experience, while Marion Enander steps into a newly created role as Chief Strategy & Innovation Officer.

Both roles will report into John McMurdo, Australian Ethical Chief Executive Officer. McMurdo said: “I think it’s particularly significant that Australian Ethical is one of just 20 ASX 300 companies to achieve full gender equality at both Board and C-Suite levels. These appointments underline our focus on delivering market-leading investments while maintaining our fundamental commitment to doing it the right way, which includes embracing diversity and inclusion at every level.

“Even before the world was gripped by the pandemic crisis, Australians were beginning to seek us out in record numbers because they understand that what they do with their money is not disconnected from the world we live in. Our challenge is to continue this phenomenal success, especially as others seek to replicate what we do,” he continued.

“And so, I’m delighted with Maria and Marion’s appointments. I’m certain their experience, knowledge and expertise will be invaluable as we continue to grow Australian Ethical into one of the most impactful and trusted fund managers in Australia.”

Ms Loyez, who in 2018 was named as Marketing Professional of the Year by Women in Finance, joins Australian Ethical from Volt Bank where she was Chief Customer Officer. With more than more than 20 years’ international and strategic commercial experience, previous roles include Chief Marketing Officer at SocietyOne, Chief Marketing Officer at OFX (formerly OzForex) and lead marketing roles with Virgin, AMP and Optus. At Australian Ethical, Ms Loyez will be responsible for delivering a compelling member experience and enhancing a customer-first mentality across all physical and digital channels.

Ms Loyez said: “With its recent stellar investment performance, Australian Ethical challenges – and dispels – the myth that ethical investing is just about doing the right thing. Its history is rooted in a desire to create a better future for everyone and I couldn’t be more excited about helping to grow the business and ethical investing.

“I’m especially looking forward to engaging with its customers and not just delivering but exceeding their expectations.”

Ms Enander, who has been consulting on strategy at Australian Ethical since 2019, has extensive Australian and international experience in strategic leadership and change management roles in financial services. Previous roles include General Manager at Perpetual and Director at Credit Suisse in London together with various strategy consulting roles.

In addition to championing and driving strategic initiatives, Ms Enander will focus on facilitating idea generation and creative thinking as Australian Ethical increases its focus on product and service innovation.

Ms Enander said: “In just the past 12 months, we have seen some quite seismic shifts in Australians’ ethical behaviours and expectations. People are much more aware of the positive impact their money can have while still delivering competitive returns. “To compete in what is becoming a fiercely contested market, Australian Ethical must continue to embrace innovation as it has done for over 30 years ago when it first began pioneering ethical investing.” Australian Ethical recently announced record funds under management and net inflows and was named one of Australia’s top performing super funds during the COVID crisis by leading research houses SuperRatings and Chant West.

McMurdo said: “Australian Ethical has long embraced the value of diversity and how it helps companies be agile, flexible as well as think quickly and differently. The challenges of the past few months have only served to underline the importance of different voices, perspectives and experiences.

“Australian Ethical’s established culture of asking open questions, being curious and sharing experiences will be key to thriving in a new normal and delivering the results our customers want for themselves as well as people, planet and animals.”

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AMP Director Corporate Super, Libby Roy has appointed the following people to her leadership team.

• Illaine Anderson – Director, Account Management
• Warwick Angus – Director, Corporate Development
• Angus Bishop – Director, Field EffectivenessHilary Inglis – Director, Corporate Super Investments
• Maria Loyez – Director, Value Proposition
• Justin Morgan – Director, SME Adviser Business

Ms Roy said the appointments to her leadership team are now complete with its final member, Warwick Angus, starting with AMP in late August, and reflect AMP’s ongoing commitment to the,corporate super business.

“Corporate Super is a core part of the AMP business and with the changes we are seeing across the industry it’s more important than ever to have a strong team in place to ensure we’re continuing to offer the right solution for employer groups, advisers and our customers.

“Along with the introduction of MySuper, changing customer behaviour and technological change are driving a shift in this sector.

“This presents opportunities to look at new ways of doing business while at the same time maintaining our focus on delivering an attractive corporate superannuation offer for both new and existing customers,” said Ms Roy.

The new leadership team bring a depth of knowledge across superannuation, insurance, financial advice and operations.

The roles will focus on providing tailored support to clients from the SME market through to large corporate clients, relationship management, an ongoing focus on providing a strong investment offering and driving efficiencies within an environment of regulatory change.

AMP recently confirmed it will launch its MySuper offers from 1 January 2014. This will include a Lifecycle option available to its SignatureSuper customers, who are mainly large to medium businesses.

The Lifecycle option will provide a whole of working-life solution with active investment strategies in place to adapt to each stage of life. This will enable employers to offer employees a targeted solution for their retirement.

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