Australian Ethical Super Leads RIAA's 2023 Responsible Funds List, Backing Govt's 2030 Emissions Target
The Responsible Investment Association of Australasia (RIAA) has recognised 10 super funds as 'responsible' in its 2023 assessment, with Australian Ethical Super leading the pack. Meanwhile, most Australian super funds have aligned with the government's 2030 emissions reduction vision, as confirmed by John Pearce, chief investment officer at UniSuper.
Australia aims for a 43% reduction in emissions by 2030, as per the Climate Change Bill introduced by Prime Minister Anthony Albanese. This target is supported by the superannuation industry, which manages over A$3.5 trillion in assets. The concentration of these assets is high, with 14 funds controlling 80% of the industry's assets. Asset allocation and stewardship by these funds play a critical role in the country's energy transition.
The RIAA rates super funds and investors based on environmental, social, and governance (ESG) criteria, as well as engagement, transparency, and impact realisation. Australian Ethical Super was awarded the highest rating in the 'Responsible Superannuation Fund' category, making it the leading responsible pension fund in Australia. More details can be found in the RIAA's Responsible Investment Benchmark Report 2023 or on their official website.
The recognition of responsible super funds by the RIAA and the alignment of most super funds with the government's emissions reduction target indicate a significant commitment to sustainable investing in Australia. This bodes well for the country's energy transition and responsible investment landscape.
