40 Years of investing in what matters
Forty years ago, a small group of friends in Canberra asked a question that still feels urgent today: what if money could do more than make money? In 1986, that question became Australian Ethical — an investment company guided by 23 principles designed to support people, animals and the planet, while avoiding harm.
Since then, the world has changed dramatically. Industries have risen and fallen, and what the world expects from businesses has fundamentally shifted.
But one thing has not changed: where money goes matters.
A different way to invest
Most investment managers start with financial analysis. At Australian Ethical, ethics comes first.
Every investment is assessed against our Ethical Charter before it can enter our portfolios. Then our investment team apply research and analysis to build portfolios designed to deliver competitive long-term returns.
We assess investment opportunities against our Ethical Charter. Only when they’ve entered our ethical investment universe can our portfolio managers assess them from an investment perspective. That sequence — ethical conviction first, investment expertise next — has defined our approach from the beginning.
And it doesn't stop at the point of investment. We engage the companies we own and some we don’t, voting at AGMs, and using our voice to hold them to higher standards. All guided by the same Ethical Charter.
Backing ideas before they become obvious
One of the privileges of investing over four decades is seeing ideas once considered niche become part of everyday life.
Over the years, we have backed companies working in energy efficiency, health technology, renewable energy, aged care and the circular economy — areas we believe can contribute to and grow with the future economy.
Our conviction is simple: businesses that innovate, adapt and manage change responsibly are often better positioned to create enduring value and support strong long-term investment performance.
We backed ideas before they became everyday solutions: LED lighting, cleaner energy and technologies that transform lives, such as cochlear implants.
Why ethical investing matters now
When Australian Ethical began, responsible investing was still a niche idea. Today, the forces shaping the world — climate change, biodiversity loss, technological disruption, demographic change and social inequality — are also shaping investment risk and opportunity.
The connection between financial outcomes and real-world outcomes is now well established.1 We believe the businesses best placed for the future will be those able to respond to change, manage risk responsibly and contribute to solutions.
The power of collective impact
Australian Ethical’s story has always belonged to the people who choose to invest with us.
Together, those investors have demonstrated that individual choices, made collectively, can influence the kind of economy we build. At the beginning of this financial year, more than 130,000 Australian Ethical investors represent $14.5 billion directed toward that goal.
For forty years, Australian Ethical investors have been putting that idea into action. And the next forty years will matter just as much.
