Although super fund members want their super fund to produce a good investment return every year, many also want their money to be invested responsibly and in line with their personal values. Some super fund members feel uncomfortable with their retirement savings supporting activities like fossil fuel mining, development of armaments, or exploiting employees in third-world countries.
In fact, 9 out of 10 Australians expect their superannuation or other investments to be invested responsibly and ethically, according to research conducted in 2017 by the Responsible Investment Association Australasia (RIAA).
It’s a view super funds are taking increasingly seriously, according to the RIAA’s Superfund Responsible Investment Benchmark Report 2018. The report found that 81% of Australia’s 53 largest super funds are committed to responsible investment (up from 70% in 2016), with super funds “increasingly flexing their muscle to influence better company behaviour and contribute to more sustainable financial markets”.
With the aim of helping super fund members understand how to ensure their super account is being invested the way they want, SuperGuide has taken a closer look at what responsible investment means when it comes to super funds.