Put your money where your mission is: Can your investments and super work

for a better world?

Adam Verwey Business Relationships Manager

Australian Ethical

For 98% of money invested in Australia:

“Labour standards or environmental, social or ethical considerations are not taken into account when selecting, retaining or realising an investment for members.”

Q.  Super  funds  have  an  obliga5on  to  act  in  the  long  term  interests  of  their  members.  In  your  view,  is  the  meaning  of  “long  term  interests”…  

Restricted  to  just  the  financial  return   36%  

Inves7ng  in  companies  that  behave  ethically  …  as  well  as  providing  financial  return  

41%  

Not  sure   23%  

$1.5 Trillion

From our NFP People survey... What type of investments do you think your

stakeholders would like you to avoid?

– Coal mining, fracking, native forest logging, environmental degradation

– Armaments

– Tobacco

– Child labour

– Big pharmaceutical

From our NFP People survey... What type of investments do you think your

stakeholders would like you to support?

– Environmental sustainability, renewable energy

– Green buildings

– Indigenous rights and employment

– Companies that don’t exploit workers

– Ethical treatment of animals

9/4/13 7  

  An independent fund manager

  Over 25 years of ethical investing, established in 1986 to pool investor savings to create a more fair and sustainable society

  7 managed funds and a superannuation fund

  We manage approximately $700 Million

  Over 20,000 investors and super members

  More than 120 diverse environmental and socially responsible investments

  Recognised domestically and internationally for our rigorous approach to responsible investment

  Canberra and Sydney offices

  10% of profits are donated to non-profit organisations annually

Different ways of doing ethical investment!

•  Best of Sector does not avoid any sector or stock and favours best performance in each sector

•  Negative Screen avoids investment in certain sectors and stocks

•  Corporate Engagement/Shareholder Activism attempting to engage corporations at a board level or using proxy voting to make change

•  A Positive Approach actively seeks to identify and support beneficial endeavours

How is Australian Ethical different?

Areas excluded include •  Armaments •  Repressive Regimes •  Tobacco and Alcohol Production •  Uranium Mining •  Rainforest/Old Growth Logging •  Native Forest Wood-chipping •  Animal Exploitation •  Gambling •  Genetically Modified Organisms •  Polluting Industries •  Coal fired energy generation, coal seam gas

•  Recent Examples – divestment of Origin Energy and TOMRA

Areas supported

•  Recycling and Waste Management •  Renewable Energy •  Efficient Energy Use •  Resource and Water Conservation •  Socially Responsible Investment •  Green Buildings •  Sustainable Timber Production •  Healthcare and Well-being •  Workplace Relations •  Education •  Efficient Transport •  Green I.T. •  Sustainable Products and Services

9/4/13 12  

How Australian Ethical portfolios differ

  More invested in

–  renewable energy, energy efficiency

–  healthcare

–  efficient transport

–  biotechnology

–  communication and information technology

  Less invested in

–  resources

–  large banks (corporate focus)

  More Small/Mid sized companies September  4,  2013  

Who we invest in

SunPower   Carnegie  Wave  Energy  

Aixtron  

Vestas  

Sims  Metal  

Who we invest in

Herman  Miller  

Cochlear   Avita  

Doing well by doing good

No need to sacrifice returns...