06 August 2019
3 min read

Did you know that many super funds and banks invest your money in fossil fuel industries that are destroying our planet? A low-carbon fund can get your money out of polluting industries and into building a better world.

One of the biggest changes you can make to your personal emissions is to consider switching your super and banking to a company that excludes investments fossil fuels. It’s a quick, one-off action that will ensure your life savings are invested for a future you and your loved ones can enjoy.

At Australian Ethical, together with our members, we’re serious about taking action on global heating and making our investments do good.

The difference we can make

So how does ethical investing actually work and what is the personal impact you can have?

At Australian Ethical, we never invest in climate ‘unfriendly’ sectors like fossil fuels. Instead we invest in climate-friendly sectors like renewable energy and technologies to help us get to a zero-emissions world by 2050. We’re even going further by working on a decarbonisation of our entire investment portfolio.

One of the biggest impacts we have as a company is our investments in the renewable energy sector. Technologies like solar, wind, tidal, geothermal, sustainable hydro and battery storage are essential to limiting global heating. Plus, not only are they more sustainable than fossil fuel energy production, but these industries also create jobs and help alleviate poverty with off-grid and future-proof energy supply.

We understand that tackling climate change goes way beyond fossil fuels. That’s why we invest in companies and sectors that help decarbonise our economy – from food production and transport to recycling and waste management.

Every company we invest in is screened against our Ethical Charter by our team of ethical analysts. We look at the social and environmental impacts but also engage with the companies to encourage them to create a better, safer future.

Grow the good

We don’t think you should have to compromise financial returns for ethics. It is possible to have a positive impact on the planet without sacrificing your economic future.

In fact, research by the Responsible Investment Association of Australia (RIAA) shows that ethical funds have outperformed compared to equivalent mainstream funds across the majority of time periods. Our experience shows that ethical funds can deliver superior returns with lower volatility. Please note that past returns are not a reliable indicator of future returns.

You can read more about our returns here.

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You have the power

Have you ever looked at your personal carbon footprint? Our calculator estimates just how much of an impact your super investments could have on your personal carbon emissions footprint.

At a time when many of us are concerned about the impact of the climate emergency, it’s never been more important to ensure our money is invested in companies that don’t invest in fossil fuels.

It’s one action, and it’s done! You can switch to Australian Ethical in 2 minutes and divest your super from fossil fuels.

You might also like to consider switching to Bank Australia* to make sure your money no longer funds dirty industries polluting our planet.

Find out what else you can do to live a 1.5-degree life.

*Australian Ethical invests in Bank Australia.

This article provides general information only and does not take account of your individual investment objectives, financial situation or needs.  Before acting on it, you should consider seeking independent financial advice that is tailored to suit your personal circumstances and visit australianethical.com.au for our financial services guide and product disclosure statements.  © Australian Ethical Investment Ltd (ABN 47 003 188 930, AFSL 229949), the Responsible Entity and Investment Manager of the Australian Ethical Managed Investment Funds. Interests in the Australian Ethical Retail Superannuation Fund (ABN 49 633 667 743; R1004731) are offered by Australian Ethical Investment Ltd by arrangement with its subsidiary and trustee of the Super Fund, Australian Ethical Superannuation Pty Ltd (ABN 43 079 259 733, RSEL0001441).