(L to R): Dean Hegarty and Estelle Parker

The Responsible Investment Association Australasia (RIAA) is pleased to unveil the appointment of Co-CEOs, Estelle Parker and Dean Hegarty to take up the leadership of the organisation, marking an important step for RIAA with dual CEO representation in Australia and Aotearoa New Zealand.

Following an extensive global search, the RIAA board proudly announces the promotion of two distinguished executives within RIAA, who will jointly take over as Co-CEOs upon the departure of current CEO, Simon O’Connor in early December 2023.

Over the past three years, Estelle Parker and Dean Hegarty have demonstrated exceptional leadership in advancing a more responsible and sustainable financial system as Executive Managers at RIAA. Their leadership has been instrumental in RIAA’s growth and impact, placing the organisation in a robust position today.

RIAA’s Chair, Ross Piper expressed, “The RIAA board is very pleased to announce the appointment of two proven and highly skilled executives as Co-CEOs. Estelle and Dean bring deep market knowledge, strong program delivery and commercial skills, as well as having demonstrated their leadership and expertise in responsible investment across our markets.”

The Co-CEO transition, effective upon Simon O’Connor’s departure, aligns with a comprehensive approach to ensure a cohesive and diverse leadership structure for RIAA. Ross stated, “Building on their deep existing relationships with our members and across other partners and government, Estelle and Dean’s collaboration is envisioned to provide solid momentum for advancing RIAA’s mission and strategy during a pivotal time for the sector’s growth.”

Ross emphasised RIAA’s ambitious mission to advance a financial system that aligns capital with a healthy and sustainable economy, society and environment, and the strong passion both Dean and Estelle have for driving this mission. He noted, “Their demonstrated success as an executive team, complemented by shared values, a strong working relationship, and a profound passion for RIAA’s mission, positions them ideally for the Co-CEO model.”

Estelle Parker has spearheaded the expansion and growth of the industry leading RIAA Certification Program. Her senior government diplomatic experience brings crucial expertise in government relations, policy making and many issues that responsible investors care about such as Human Rights and the SDGs. This is particularly crucial as the sector enters a period of responsible investment and sustainable finance legislative developments. Estelle has also been instrumental in leading critical external engagements, such as convening the official Australasian Consultation Group for the Taskforce on Nature-related Financial Disclosures (TNFD), leading RIAA’s involvement in the Dhawura Ngilan Business and Investor Initiative on First Nations cultural heritage protection and participating in government stakeholder committees. She has established herself as a strong spokesperson for the

sector. Under her guidance, RIAA’s programs have achieved heightened levels of professionalism, impact, and value delivery to its members.

Dean Hegarty, RIAA’s first Aotearoa New Zealand-based executive, has played a pivotal role in enhancing the organisation’s presence and activity in both Australia and New Zealand, contributing to substantial growth and organisational changes. Dean brings over a decade of experience leading teams in the not-for-profit sector and his efforts have resulted in significant membership growth, a more than doubling in size of RIAA’s annual conferences in both Australia and New Zealand, developing key industry partnerships, and established himself as the voice of RIAA in New Zealand.

The RIAA board acknowledged the joint expertise of Estelle and Dean across program delivery, government relations, commercial acumen, and leadership in responsible investment, forming a robust foundation for their roles as Co-CEOs in RIAA’s next chapter.

Ross Piper expressed gratitude to RIAA members for their unwavering support and engagement, at this important time of transitioning to new leadership. Outgoing CEO, Simon O’Connor, is recognised for a decade of highly effective leadership, leaving a lasting positive impact on the Australian and New Zealand investment and financial services sectors. The board looks forward to building upon this legacy for the next phase of RIAA’s growth.

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Margaret Franklin

CFA Institute, the Global Sustainable Investment Alliance (GSIA), and Principles for Responsible Investment (PRI) have issued a new guidance that aims to bring greater understanding and consistency to terms used in responsible investing which will potentially reduce greenwashing by asset managers.The Definitions for Responsible Investment Approaches^[1] guidance is intended for investors, regulators, policymakers, and other market participants. For each of the terms below, CFA Institute, GSIA, and PRI have outlined a definition, detailed explanation, and a list of definitions that have served as the primary inputs for using the terms in practice.

• screening
• ESG integration
• thematic investing
• stewardship
• impact investing.

The collaboration between the three organisations was inspired by calls from regulators for voluntary standard setters to develop common terms and definitions to ensure consistency in the global wealth management industry. The guidance clarifies existing terms and definitions but does not create new terms. It also recognises important shifts that have taken place in responsible investment, with strategies now being applied to a wide range of investment styles and asset classes in both public and private markets. Prior versions of the definitions were, in some cases, limited to investments in listed companies.

Margaret Franklin, President and CEO at CFA Institute, said: “Technical terminology is an important part of responsible investment.  New terms are always emerging alongside new ideas, and definitions evolve over time.  It is important to standardise terms and definitions as practices mature so that professionals can communicate efficiently and effectively with each other as well as with clients, regulators, and other market participants. We believe this guidance will serve as a valuable resource for CFA charterholders, members, and candidates.”

Lisa Carroll, CEO of CFA Societies Australia, said:  “We welcome and encourage the Australian investment industry to adopt the definitions in this guidance to create greater consistency and understanding by all parties, including investors.

“Promoting the consistent and precise use of terminology in responsible investment will help to reduce greenwashing and introduce greater consistency among asset managers in developing and marketing responsible investment products. The guidance counters confusion about what different responsible investment strategies seek to achieve by clearly differentiating the objectives of approaches, such as ESG integration and impact investing,” Carroll said.  

“These definitions will create a consistent foundation for the continued professionalisation of responsible investment.”

David Atkin, CEO at PRI, said: “Responsible investment has grown significantly, and so have the expectations for clear and transparent communication. Investors need language that enables them to communicate their responsible investment practices accurately, succinctly, and consistently. By unifying around common definitions, we support our signatories and members to communicate with confidence.”

Simon O’Connor, Former Chair of the GSIA, said: “For many years, our organisations have been working to define and clarify the language of responsible investment.  This foundation of experience and expertise enabled us to come together with a common purpose to clarify and harmonise these definitions on a global scale. We now encourage the investment industry and regulators to adopt these definitions to create greater consistency.”

The guidance is available to read on each of the respective organisation’s websites:

CFA Institute, GSIA and PRI.

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Simon O’Connor

The Responsible Investment Association Australasia (RIAA) strongly welcomes the Treasurer’s Sustainable Finance Strategy as a pivotal milestone, highlighting the significant role of investment labels in the responsible investment industry. The Strategy, with one of its priorities on developing a labelling system for investment products marketed as sustainable, marks a crucial step towards aligning the finance sector with Australia’s net-zero transition.

The Treasurer’s consultation paper sets the stage for a remarkable transformation in Australia’s financial landscape by introducing a labelling system for investment products marketed as sustainable. RIAA underscores the critical impact of this development on the responsible investment sector, which has been a priority outlined in the Strategy.

Simon O’Connor, CEO at RIAA, acknowledged the Sustainable Finance Agenda as a significant stride towards international alignment but stresses the urgency of Australia’s actions.

“The government knows it has a rare opportunity to rapidly change the landscape of investment and finance through this Strategy. But let’s not kid ourselves, whilst we’re not starting from scratch, we are late to this important policy discussion and so must move fast and leverage existing industry efforts to play catch up,” said Simon.

Simon further emphasised RIAA’s Responsible Investment Certification Program as an existing and highly reputable product labelling standard that has played a pivotal role in eliminating greenwashing. Simon welcomes the Treasury’s acknowledgment of this program in the draft Strategy and looks forward to discussions on how it can accelerate sustainable finance efforts.

Simon said this Strategy offers a powerful tool to combat greenwashing and foster a landscape where responsible investment is not just a trend but a commitment upheld by the entire industry. “For over 17 years of running the Responsible Investment Certification Program, many superannuation funds and investment managers have voluntarily taken the right path by seeking verification from us. This new Strategy signifies a significant shift. It implies that all superannuation and investment managers following a ‘responsible’ investment approach will soon embark on this journey. They will need to embrace transparency in their disclosures, ushering in consistency and assurance for Australian investors.”

The Treasurer’s consultation paper presents Australia with an opportunity to align with global trading partners in transitioning to a sustainable finance framework. It underscores the government’s vital role in shaping a sustainable finance agenda, a perspective long championed by RIAA.

As the largest and most active sustainable finance industry group in the southern hemisphere, RIAA together with our members, have been calling for such a strategy – and many of the elements outlined in this paper – for over ten years.

Australia’s financial system represents a potent lever in supporting the rapid clean energy transition. With the 2030 targets looming and a $3.5 trillion pension fund, one of the world’s largest, Australia stands at the forefront of global markets. Effective execution of the Sustainable Finance Strategy, with clear policy signals, will unlock this immense potential.

RIAA’s role in shaping sustainable finance

RIAA’s extensive experience and active role in shaping sustainable finance are evident in initiatives such as the Australian Sustainable Finance Roadmap and the world’s longest-running product labelling scheme in responsible investment.

To ensure the Strategy’s effective implementation, RIAA calls on the government to establish a Sustainable Finance Advisory Council, facilitating cross-sectoral collaboration among government, finance, and business. Efforts to eliminate greenwashing must build upon existing strong foundations and classification systems, empowering sustainable businesses to attract confident investors.

Simon O’Connor reaffirms RIAA’s commitment to further strengthening the Strategy. “This draft Sustainable Finance Strategy provides a strong start for Australia, and we strongly welcome it. RIAA will be keen to engage closely with the Treasurer, the Treasury, and other agencies based on our years of experience and unparalleled expertise in this area.”

The Strategy outlines several key areas which will be fundamental to achieve this, including:

• We welcome the recognition of the need to strengthened action to prevent greenwashing through ESG product labelling regulations, and the acknowledgement of the opportunity to build off existing domestic approaches such as RIAA’s long-standing and world-leading Responsible Investment Certification Program.
• We welcome the acknowledgement that a comprehensive Sustainable Finance Strategy must seek to reform any measures that are running counter to the Strategy’s aims, and note the urgent need for reform of the Your Future, Your Super performance test that currently disincentivises long-term sustainable investment approaches, which RIAA is already engaging. constructively with Treasury on. Sensible reform on this test can deliver in the best financial interests of members whilst also ensuring alignment of superannuation with a low carbon economy, as well as sustainability themes other than climate.
• We commend the government acknowledging the critically important role of investor stewardship in supporting a stronger and more sustainable economy. We strongly support more effective and transparent investor stewardship, and there is a critical role for government to support this investment approach which RIAA research shows is now the most widely-used responsible investment approach.
• Legislating climate related disclosures, which RIAA has been strongly supportive of, with a clear view to how broader sustainability and nature disclosures can follow in their wake.
• Continuing to support the Taskforce on Nature-related Financial Disclosures (TNFD) and International Sustainability Standards Board work on sustainability disclosures. As convenor of the official TNFD Consultation Group for Australasia, RIAA calls on the government to move rapidly beyond climate to adopt the broader ISSB – and eventually TNFD – standards.

This provides a further opportunity for an integrated, Whole-of-Government approach to tackling the acute and interrelated challenges of climate change and biodiversity loss, ensuring the finance sector plays its part.

• Support for a sustainable finance taxonomy that will help to articulate what are those green industries that will support a low carbon transition, which RIAA helped seed through co-Chairing the Australian Sustainable Finance Roadmap. For credibility, it will be essential that this remains deeply grounded in the science, not the politics.
• Support Whole-of-Government work to address the data gaps that RIAA’s 500-strong member base tells us are a key challenge to understanding impacts, risks (and opportunities) within investment decision- making.
• Better understanding the systemic financial risks that climate change and the net zero transition pose for our economy, and supporting credible, net zero transition planning. This will give investors certainty to make long-term decisions.
• And positioning Australia as a global sustainability leader, ensuring international alignment of Australia’s sustainable finance agenda – a no-brainer for any country seeking to remain an attractive market for investors.

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Simon O’Conner

In an age where climate concerns and social consciousness dominate headlines, it’s no surprise that investors are increasingly seeking investments that align with their values. With several high-profile cases recently exposing alleged greenwashing practices, many investors are left wondering if they can trust a company’s sustainability claims.

Four out of five Australians now expect funds in their bank account and super to be invested responsibly and ethically. Likewise, 74 percent said they’d consider moving to another provider if their current fund was investing in activities not consistent with their values.

With the Australian Securities & Investments Commission (ASIC) cracking down on greenwashing claims, and the recent Vanguard and Active Super cases highlighting the seriousness of false ethical allegations, investors need to better understand where their money is invested.

Where is your super fund contributing to?

For many Australians, a significant portion of their investments lies within superannuation funds. It’s, therefore, crucial to understand how these funds are managed and whether your superfund aligns with responsible investing. It’s worth investigating your super fund provider’s ESG policies, how they choose their investments, and whether they can substantiate their claims.

The good news is that standards are emerging globally that will, eventually, ensure that greenwashing is eliminated from financial products like superannuation. When you’re buying fairtrade coffee, free range eggs or purchasing green power, it’s important to know the product has legitimacy regarding its claims.

In each of these cases there are detailed programs of assessment that are undertaken to ensure consumers are not misled and that products live up to consistent standards. The same is emerging for financial products, whereby consistent standards around labels, names and terminology are rapidly emerging to ensure finance companies are held accountable.

Australia’s standards for financial products

To date, the Responsible Investment Association Australasia (RIAA) has been the primary driver in lifting standards in the area of responsible and sustainable investment in Australia. For 16 years we’ve been responsible for a labelling program that requires the highest consistent standards, as a baseline for ensuring finance products are delivering on their promise and not misleading consumers. This program now has over 300 finance products certified, meeting the highest standards of transparency.

While this traction has been challenging on a broader scale, the industry is starting to take notice with the big end of town finally catching up, and ASIC recently taking steps to clarify what they expect from the green claims made by finance companies.

On a global scale, an agreement on the definitions of key terms is being finalised, through a project of the CFA Institute, the Global Sustainable Investment Alliance and the Principles for Responsible Investment. This project is a vital building block that will assist with the end of greenwashing.

If we don’t define terms like ‘organic’ or ‘free range’ then we’re bound to see further unscrupulous companies using these phrases loosely. Likewise, defining the terms around responsible investment such as ESG, stewardship, negative screens and impact, will ensure there is less risk of them being misused. But this alone is not enough.

The importance of the government’s upcoming Sustainable Finance Strategy

We now know that most Australians want their retirement savings invested in an ethical and responsible manner, but increasingly consumers are also stating they want their investments to do further good. As people become more aware, greater responsibility sits with financial institutions to ensure they’re acting ethically and are communicating in a transparent honest manner.

Our consumer research shows that 84 percent of people want their super fund to take action on climate change, such as reducing greenhouse gas emissions of the companies they’re invested in. Despite this, Australians know we have a big task ahead of us to achieve our net zero commitments by 2050 and to ensure our country doesn’t suffer from severe droughts, floods, heat waves and bush fires.

For our nation to do that, we have major investments ahead of us and we won’t achieve these climate targets without activating our finance sector. The Treasurer’s forthcoming Sustainable Finance Strategy presents a monumental opportunity to ensure the finance sector is aligning in support of a clean energy future, in a manner that the bulk of Australians are calling for.

There’s an opportunity for the government to step up the sustainable investment product labelling requirements, in a manner similar to the UK and the EU, and to acknowledge the strong work already done in our market. In this strategy we need the government to provide a big injection of support, to ensure all products are meeting their sustainability promises.

Because no one wants a caged egg, or an unethical superfund when they’ve chosen otherwise. To eliminate greenwashing, the government must deliver on the Sustainable Finance Strategy and ensure consumers can choose eggs, coffee, chocolate, power, or sustainable super funds with trust and transparency.

By Simon O’Connor, Chief Executive

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Muzzammil Dhedhy

Hejaz Financial Services, Australia’s leading Islamic finance provider, has announced that four of its funds have been certified by the Responsible Investment Association Australasia (RIAA).

RIAA’s Responsible Investment Certification Program is the leading initiative for distinguishing quality responsible, ethical and impact investment products in Australia and New Zealand. RIAA sets strict criteria for certifying investment products, helping provide consumers with the assurance that an ethical or responsible investment product is doing what it claims to do.

Regardless of their faith, retail investors increasingly want to see a reflection of themselves in their investments. RIAA consumer research shows that 89% of Australians and 83% of New Zealanders expect their investments to be made responsibly and ethically, while 4 in 5 Australians are now expecting investment products to be verified as delivering on their promise by an independent certifier.^[1]

The certification of Hejaz’s funds cements its position as one of Australia’s leading ultra-ethical fund managers and investment product providers. While Hejaz’s mission is to enable Australian Muslims to access traditional financial services that they are typically excluded from, it also wants its products to be taken up by non-Muslim investors seeking to avoid greenwashed products.

The four funds certified by the RIAA are:

• Hejaz Global Ethical Fund – Hejaz’s flagship fund and Australia’s largest single standalone Islamic fund
• Hejaz Equities Fund – A Halal equities fund targeting 15% p.a. return net of fees. Now available as an ETF (ASX:ISLM)
• Hejaz Property Fund – A fund that applies Shariah investment principles to globally listed REITs, targeting 10% p.a. net return of fees. Now available as an ETF (ASX:HJZP)
• Hejaz Income Fund – Australia’s highest returning Islamic Income Fund

Muzzammil Dhedhy, COO at Hejaz Financial Services commented “Australians want to see themselves reflected in their choices, whether it be their investments, their clothing manufacturers, or food suppliers, social responsibility and values-based living is become increasingly prevalent. But there are a lot of imposters out there that are labelling their products ethical when in fact they are anything but.

“Hejaz’s mission is to not just enable financial access for Muslims but also provide non-Muslims with ultra-ethical products that they can trust. That’s why it was so imperative for Hejaz to gain certification from the RIAA, Australia’s leading responsible investing certification body, to ensure that our investors know that when they invest in a Hejaz product, they can count on not being a victim of greenwashing.”

In order to become RIAA certified, financial products must adhere to strict criteria, set out in the RIAA’s Certification Program. The eight requirements are:

• investment strategies are formal, disclosed, consistent, auditable and fit for purpose
• labels are clear, honest and not misleading
• product avoids significant harm
• product accounts for environmental, social and governance factors
• discloses full holdings, performance, sustainability outcomes and engagement and voting practices
• managed by active stewards, and managers can detail the stewardship practices and outcomes
• organisation has formal commitment to responsible investment
• organisation provides educational information to members and customers about responsible investment strategies and investment outcomes

Simon O’Connor, CEO of RIAA, commented: “RIAA’s Responsible Investment Certification Program differentiates quality, true to label responsible investment products which meet the Responsible Investment Standard. We congratulate Hejaz Financial Services for meeting the high benchmark set for Certification for four of its funds.”

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[1] https://responsibleinvestment.org/wp-content/uploads/2020/09/RI-Certification-Program-Quick-Guide.pdf

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The Responsible Investment Certification Symbol is the leading mark for distinguishing quality, responsible and ethical investment products.

This certification also applies to the Firetrail S3 Global Opportunities Fund (Hedged) which is available to investors in Australia and distributed by Pinnacle Investment Management Limited.

The Fund is a concentrated portfolio of Firetrail’s best global equity ideas. The investment process employs fundamental analysis to identify the most attractive investment opportunities with sustainable characteristics.

Firetrail’s Managing Director and Portfolio Manager, Patrick Hodgens, said “We see huge opportunities to deliver our clients superior investment returns by identifying companies that are future leaders in positive change. These are the companies that are the positive change leaders of tomorrow. We’re extremely proud that RIAA has certified the Firetrail S3 Global Opportunities Fund”

“It’s testament to the work of the investment team who search the globe for the very best companies that meet Firetrail’s sustainable investment criteria. By taking a style agnostic approach, the team has the flexibility to invest in both Value and Growth opportunities, which is particularly important for global equity investors over a medium-term time horizon,” he said.

The Fund continues to receive strong interest from across the Australian and international investment spectrum, with both retail and institutional investors attracted by the high conviction, concentrated approach.

RIAA CEO Simon O’Connor said: “RIAA’s Responsible Investment Certification Program differentiates quality, true-to-label responsible investment products which meet the Responsible Investment Standard. We congratulate Firetrail Investments for meeting the high benchmark set for Certification for its Firetrail S3 Global Opportunities Fund.”

RIAA is a member-based organisation advocating for responsible investing and a sustainable financial system.

It’s comprised of super funds, fund managers, banks, consultants, researchers, brokers and financial advisers, among others.

The Fund has received a “Recommended” rating from Zenith and “Investment Grade” from Lonsec.

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Elizabeth Trinh

The American Century Healthcare Impact Equity strategy has been awarded responsible investment certification by the Responsible Investment Association Australasia (RIAA).

This certification also applies to the Zurich Investments ACI Healthcare Impact Fund which is available to investors in Australia and is distributed by Zurich Investment Management Limited.

While a growing number of Australian-domiciled equity funds are RIAA-certified, only a small number of impact-based funds have passed the test.

The Fund is a differentiated growth portfolio which invests in companies in the health care industry, and has an underlying investment philosophy that aligns with the third United Nation’s Sustainable Development Goal of good health and well-being.

American Century’s interim head of Asia Pacific, Elizabeth Trinh, said the manager is particularly pleased that RIAA has certified the strategy as one of a very select number of funds to be recognised for their impact.

“It’s testament to the work by the investment team who employ a number of responsible investing strategies to the process, including negative screening, engagement and voting, and ESG integration.

“All companies in the portfolio undergo analysis on how business improvements align with a positive impact on society. The Fund doesn’t invest in businesses it believes are inconsistent with its objective of generating positive social change.

“The strategy continues to attract strong demand from Australian institutional investors, and we anticipate the certification will only strengthen the level of interest in the Fund,” she said.

The strategy was established in 2018 and currently has $US1.58 billion in assets under management globally. It is a high-conviction portfolio which seeks to provide long-term growth by investing in 30-50 health care companies addressing significant unmet medical needs.

Michael Li, portfolio manager of the Fund, says the global pandemic shone a light on the health care sector as a means of generating both financial and social good.

“Healthcare has the potential to be one of the most rewarding areas for investment in the long term, allowing investors to benefit financially while also supporting a tremendous social good.

“The certification is recognition that our impact investing process is robust and effective. Our approach is to consistently look for those companies who can provide solutions to unmet medical needs, and the ability to do well by doing good has never been more important,” he said.

RIAA CEO Simon O’Connor said: “RIAA’s Responsible Investment Certification Program differentiates quality, true to label responsible investment products which meet the Responsible Investment Standard. We congratulate American Century for meeting not only the high benchmark set for certification for its Healthcare Impact Equity Strategy, but the extra requirements for financial products trading as ‘impact’.”

RIAA is a member-based organisation advocating for responsible investing and a sustainable financial system. It’s comprised of super funds, fund managers, banks, consultants, researchers, brokers and financial advisers, among others.

With 500 members, including American Century Investments, representing US$29 trillion in assets under management, RIAA is the largest and most active network of organisations engaged in responsible, ethical and impact investing across Australia and New Zealand.

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Simon O’Conner

The Responsible Investment Association Australasia (RIAA) will convene the Taskforce on Nature-related Financial Disclosures’ (TNFD) official Consultation Group for Australia and New Zealand, bringing together business, finance, public sector and civil society organisations to drive engagement in nature-related business and finance issues and the future adoption of the global TNFD framework.

The TNFD was established in 2020 to develop and deliver an integrated risk management and disclosure framework for organisations to report and act on evolving nature-related risks, with the ultimate aim to support a shift in global financial flows away from nature-negative outcomes and toward nature-positive outcomes. Final recommendations from the Taskforce are due in Septem

RIAA’s role will be to provide a central point to drive the consideration, input and uptake of TNFD in our markets, working with institutional members of the TNFD Forum. This will leverage the existing work RIAA is leading including through its very active Nature Working Group, and partnerships with the Australian Department of Agriculture, Water and the Environment.

“As we have seen with the successful adoption of the TNFD’s earlier climate equivalent, the Taskforce on Climate-related Financial Disclosures (TCFD), a reporting framework is vital for investors understanding the nature-related risks in their portfolios and mitigating these,” said Simon O’Connor, CEO at RIAA.

“More than half ^[1]of global economic output is dependent on biodiversity and ecosystem services. There is strong momentum in both Australia and Aotearoa New Zealand to better account for and value assets on the basis of nature-related risks and how they are managed.

“RIAA’s convening of investors through our Nature Working Group and now through the TNFD are critical elements in building investor capacity and ultimately, protecting our natural capital. This is of utmost importance to our investor members, and the Australian and New Zealand economies,” Simon said.

Guy Williams, Co-Chair of RIAA’s Nature Working Group, TNFD Taskforce Member, and Director, Biodiversity & Natural Capital, Sustainability & Climate Change at Deloitte said, “As a TNFD Taskforce member and Co-Chair of the RIAA Nature Working Group, I am so excited to welcome and support this opportunity. The TNFD represents a seismic shift for how nature is valued and properly managed. We have a chance to ensure Australia and New Zealand help guide this shift to build a new global best practice for nature.”

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[1] https://www.swissre.com/institute/research/topics-and-risk-dialogues/climate-and-natural-catastrophe-risk/expertise-publication-biodiversity-and-ecosystems-services.html#/

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Simon O’Conner

The Responsible Investment Association Australasia (RIAA) has congratulated the incoming Government of Australia, and has called for the establishment of a national sustainable finance strategy which can unlock investment opportunities and underpin strong action on climate change and other key societal issues.

“From climate change to housing affordability to gender equality, many of the issues the electorate has deemed important at this election mirror the big issues which investors are pushing for action on,” said RIAA CEO Simon O’Connor.

RIAA is calling on the Government to establish a whole of government approach to embedding sustainability into the financial system, to underpin a strong and prosperous economy, to position Australian competitively and to help address local and global challenges.

“Finance can be mobilised to support Australian Government policy objectives in many of the areas that Australians have voted on at the ballot box, most prominently, much stronger action on climate change. The incoming government has shown it is committed to harnessing private capital to grow the sustainable and equitable economy that Australians are calling for. We look forward to seeing strengthened climate change commitments, greater support for investment in green energy, along with greater action to value and protect natural capital.

“Australia’s financial system is closely linked to regions with more advanced regulation of environmental, social and governance (ESG) factors and sustainable finance in Europe, UK and New Zealand, and new regulation is emerging quickly. For Australia to remain an attractive market for investors, and to best leverage private finance to drive this government’s agenda, we must play our part in shaping the new standards and regulations that are rapidly emerging around the world.

“Over $1 trillion of assets are now managed in Australia with consideration of ESG factors, with leading practice responsible investors actively undertaking for their investments to achieve a more sustainable society, environment and economy, consistent with the Paris Agreement on climate change and the Sustainable Development Goals.”

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Scott Kelly

Australian-owned wealth and asset manager Real Asset Management (RAM) is pleased to announce that its RAM Australian Diversified Fixed Income Fund and RAM Diversified Fixed Income & Credit SMA have been certified by the Responsible Investment Association Australasia (RIAA).

Being certified by RIAA signifies that the two RAM strategies have a commitment to ESG providing investors’ confidence we deliver on our responsible investment promise. It also confirms that the two strategies adhere to the strict operational and disclosure practices required under the Responsible Investment Certification Program for the category of product.

RAM Australia CEO Scott Kelly said the RIAA product certification achievement was a testament to RAM’s commitment to act according to its core values.

“Good governance, social responsibility and sustainability practices are key pillars of our company’s culture. Underpinning this is our belief that a proactive and transparent approach to ESG is linked to value creation and that we should align our investment activities with the broader interests of our stakeholders. We also believe we have a moral responsibility to make a positive contribution to the communities in which we operate,” Mr Kelly said.

RIAA CEO Simon O’Connor congratulated RAM on the certification. “RIAA’s Responsible Investment Certification Program differentiates quality, true to label responsible investment products which meet the Responsible Investment Standard.  We congratulate RAM for meeting the high benchmark set for Certification for its RAM Australian Diversified Fixed Income Fund and RAM Diversified Fixed Income & Credit SMA.”

Michael Frearson, RAM Head of Fixed Income added: “At RAM we recognise the importance of ESG considerations when managing investment portfolios and build portfolios to achieve specific objectives with minimal risks. Companies which operate in armaments, gaming, pornography, coal mining and tobacco industry groups are excluded from our investment universe. RAM’s issuer-level research process reviews and scores issuers on a range of metrics with a number being specifically related to ESG factors, and our transparent portfolio structure ensures ongoing visibility for our investors. Being a floating rate income strategy, our portfolios are well placed to continue to deliver on their investment objective with a rising income stream and relative capital stability, amid volatile investment conditions for Australian fixed income investors” he said.

RAM has won the Australian Fixed Interest category in the IMAP Managed Accounts Awards for four consecutive years (2018–2021). IMAP’s judging panel is comprised of independent consultants and industry executives who have commended RAM on the quality of its investment offering and risk adjusted approach to portfolio construction.

Other recent major RAM ESG milestones include:

• RAM was named an Inclusive Employer 2021-2022 by Diversity Council Australia (DCA). The accreditation comes off the back of DCA’s nationally representative survey of workplace inclusion – Inclusion@Work Index.
• In July 2021, RAM was recognised for its commitment to closing the gender pay gap with RAM Australia CEO Scott Kelly being appointed as a Pay Equity Ambassador by Workplace Gender Equality Agency (WEGA) after RAM voluntarily signed up for its program which encourages equal pay across workplaces in a range of sectors.

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