How to get started with ethical investing

The three easiest ways to make an impact with your money, according to the Responsible Investment Association Australasia (RIAA):

1 Switch your super

The actual change can take less than five minutes. You can either switch to a responsible or ethical investment option within your current fund, or, if that doesn’t suit your needs, switch to another super fund altogether. However, it is important to do some research and make sure the new fund’s performance matches your financial expectations.

2 Find out how your bank invests your money

Ask your bank who it lends money to. Fossil fuel projects? Companies involved in animal cruelty? If you’re not happy with the answers, switch to another bank.

3 Build your own investment portfolio

Options include buying shares in individual companies on the stock exchange, investing in sustainable managed funds, or in exchange-traded funds (ETFs). ETFs are like managed funds but are traded on the stockmarket just like shares, and quite a few ETFs with sustainability focuses have been established in recent years.

To help with your research on ethical investing, try resources such as:

• marketforces.org.au – Includes comparison tables, showing which banks and super funds are invested in fossil fuels.

• responsiblereturns.com.au – The RIAA’s consumer website helps you find responsible or ethical banking, superannuation and investment products that match your values.

You will find Simon Webster’s full article about ethical investing in our Winter 2022 issue (OG 134) available at newsagents and supermarkets as well as online.