iTnews
  • Home
  • Videos
  • Digital Nation
  • Finance
Digital Nation

Sustainable investment trending upwards

By Velvet-Belle Templeman
Tom Duvall
Oct 14 2021 12:30PM

Strong yield and positive impact.

The market for responsible investment in Australia continues to grow, with total assets under management increasing by $289 billion in 2020.


However, the remainder of the market has decreased by $234 billion according to the 2021 Responsible Investment Benchmark Report by the Responsible Investment Association of Australasia.

“We have seen not a seismic, but an epochal shift into environmental, social and governance (ESG) and green strategies,” says Desiree Lucchese, head of ethics and impact at U Ethical.

“We’ve seen an exponential allocation to ESG strategies, mostly passive, but at the same time, active investors have been ramping up their capabilities, their product offerings. So I think if you're looking at what has been happening over the last 10 years, we can certainly project an upholding of this trend.”

The link between risk mitigation and strong yields is beginning to become apparent to many businesses, many of which are capitalising on the opportunity.

Lucchese believes that doing so is smart businesses, enabling portfolio companies or credit recipients to transition their business will lower risk exposure and ensure long term sustainability of operations.

“Investors are becoming more knowledgeable about diversity of risks, this means that investment decision making, portfolio construction is accounting for more considerations that might have a long term outlook,” she says.

Lucchese points to data from academic resources, broker research and data providers in order for investors to account for broader risks in their portfolio construction.

“For active investors in particular, as we build portfolios, we're also responsible on behalf of our clients for managing those portfolios to the best possible financial outcomes.”

“By actively managing and responsibly engaging with our portfolio companies, we are ensuring that we can help lead their transformations behind the scenes. So a company is in the best position to manage its position in its market, in its industry.”

Got a news tip for our journalists? Share it with us anonymously here.
Digital Nation

You just read a Digital Nation story.

There are many others like it. Subscribe to our new weekly Digital Nation e-newsletter for more HR, finance, marketing, risk and emerging technology news and discussions.

SUBSCRIBE
© Digital Nation
Tags:
esgfinancegovernanceimpact investingresponsible investment

Related Articles

  • The Northern Beaches Women's Shelter hones focus on tech-enabled abuse The Northern Beaches Women's Shelter hones focus on tech-enabled abuse
  • Lawyers face sanctions for citing fake cases with AI Lawyers face sanctions for citing fake cases with AI
  • Riverina Water revamps its ERP Riverina Water revamps its ERP
  • King & Wood Mallesons Australia to give Gen AI tool to 1200 lawyers King & Wood Mallesons Australia to give Gen AI tool to 1200 lawyers

Partner Content

ElasticON Sydney 2025: Deriving value from your data with Search AI
Partner Content ElasticON Sydney 2025: Deriving value from your data with Search AI
Elastic's Open Source Strategy Drives Innovation and Expansion
Partner Content Elastic's Open Source Strategy Drives Innovation and Expansion
Machine identity a key priority for organisations’ security strategies: CyberArk
Partner Content Machine identity a key priority for organisations’ security strategies: CyberArk
Ransomware targets Australian SME false sense of security
Partner Content Ransomware targets Australian SME false sense of security

Sponsored Whitepapers

Leverage Technologies: Industry-Tailored ERP Implementation for Growth and Compliance
Leverage Technologies: Industry-Tailored ERP Implementation for Growth and Compliance
Service Over Signatures: The Truth About No Lock-In IT
Service Over Signatures: The Truth About No Lock-In IT
Wasabi Reveals Hidden Costs and Cloud Storage Shifts in ANZ for 2025
Wasabi Reveals Hidden Costs and Cloud Storage Shifts in ANZ for 2025
Datacom + Microsoft Azure: Turn Ideas Into Impact in Just 4 Weeks
Datacom + Microsoft Azure: Turn Ideas Into Impact in Just 4 Weeks
Protect APIs. Protect Your Business.
Protect APIs. Protect Your Business.

Events

  • Tech in Gov 2025 Tech in Gov 2025
  • Forrester's Technology & Innovation Summit APAC 2025 Forrester's Technology & Innovation Summit APAC 2025
  • Integrate Expo 2025 Integrate Expo 2025
  • Security Exhibition & Conference 2025 Security Exhibition & Conference 2025
  • Digital As Usual Cybersecurity Roadshow: Brisbane edition Digital As Usual Cybersecurity Roadshow: Brisbane edition
Share on Facebook Share on LinkedIn Share on Whatsapp Email A Friend

Most Read Articles

Suncorp is modernising its finance and HR systems

Suncorp is modernising its finance and HR systems

Australia Post starts planning its SAP modernisation

Australia Post starts planning its SAP modernisation

Super Retail Group to replace payroll, build HRIM

Super Retail Group to replace payroll, build HRIM

ASIC to upgrade finance ERP with TechOne

ASIC to upgrade finance ERP with TechOne

techpartner.news logo
Dave Stevens on Brennan's evolution and the need for Aussie tech unity
Dave Stevens on Brennan's evolution and the need for Aussie tech unity
Sydney's ITKnocks on contact centre AI and the slow death of the IVR
Sydney's ITKnocks on contact centre AI and the slow death of the IVR
"It's an exciting time to be part of the health and aged care sector"
"It's an exciting time to be part of the health and aged care sector"
Insicon founder Matt Miller on the coming 'tsunami' of compliance and educating boards about cyber security
Insicon founder Matt Miller on the coming 'tsunami' of compliance and educating boards about cyber security
Orro claims Australia first with managed digital asset discovery service
Orro claims Australia first with managed digital asset discovery service
All rights reserved. This material may not be published, broadcast, rewritten or redistributed in any form without prior authorisation.
Your use of this website constitutes acceptance of nextmedia's Privacy Policy and Terms & Conditions.