Ethical investing: the right thing, and the smart thing to do

Good ethics are one thing, good returns are another. Here are just some of the reasons why ethical investing makes good financial sense:

  • Demand for ethical and sustainable products and services - like those many of the companies we invest in provide - is increasing.
  • The renewable energy sector has a much more promising future than fossil fuels.
  • Investing in sustainable companies allows investors to avoid being financially impacted by disasters associated with unsustainable companies, such as a water contamination disaster caused by Coal Seam Gas extraction (we avoid investments in CSG).

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Ethical investments: Returns better than your average fund

10 year per annum returns to 31 December 2012.
Past performance is not necessarily an indicator of future performance.
Source: Responsible Investing Association Australasia, 2013 Responsible Investment Benchmark Report

Active vs Passive investment management

Active vs Passive investment management

Many other funds don't select shares that they expect to perform well financially; rather they invest in a pool of shares without looking at each company's financial credentials - this is called passive funds management. In contrast, active managers like Australian Ethical only invest in shares we expect will perform well financially.

Of course, we don't stop there! All of the companies we invest in must pass our strict positive and negative ethical screens.

Companies we invest in

More about our ethical approach

Herman Miller
We invest in Herman Miller, who manufacture and deliver award-winning furniture and interior products. They've also received awards for their approach to reducing waste and using recycled materials in their designs.