Fight Against Greenwashing Intensifies: Australian Super Funds Push For Genuinely Sustainable Practices

Must Read

Australia is a paradise for impact investing because super funds are encouraging companies they invest in to adopt environmental, social and governance (ESG) standards—but lately, the practice has become nothing but greenwashing.

Recent studies on Australian institutional investors’ practices unveiled that a staggering 87% stated their decision-making process when it came to investing in companies was highly impacted by its environmental, social and governance (ESG) principles.

“These Australian super funds take Environmental, Social and Governance (ESG) factors into serious consideration,” says Professor Elizabeth Sheedy, PhD, of Macquarie’s Department of Applied Finance and Vincent McGrath, a postgraduate researcher, has joined forces to author the report.

“Reassuringly, our observations appear genuine and demonstrate how far we have come in a short amount of time regarding ESG industry cynicism.”

Macquarie University’s Business School’s Centre for Corporate Sustainability and Environmental Finance released the whitepaper, Under the Hood of ESG Investing, by McGrath and Sheedy.

In 2021-22, more than two dozen Australian institutional investors were interviewed to understand their current investing strategies. This survey included superannuation funds, asset managers and advisory firms.

“We were curious to learn about the impetus for investors that prioritize ESG principles in their investments, how they operate and if they had any strategies for avoiding greenwashing,” says McGrath.

According to McGrath, ESG has been one of the most evident investment trends over the last ten years. Responsible investing in Australia alone has escalated drastically from 16% of total assets under management in 2013 to an estimated 43% predicted for 2022.

With the rising demand for sustainable investing practices, we must be able to identify and address greenwashing practices that are popping up. This has become increasingly challenging as these public relations messages can often appear legitimate on the surface.

There is a clear need for continued research into ESG investing in assessing its effectiveness and ensuring that it is not becoming a greenwashing tool for companies. For the sake of our planet and future generations, we must fight against these unethical practices and push for true sustainability in all business areas.

- Advertisement -spot_img
Latest News
- Advertisement -spot_img

More Articles Like This

- Advertisement -spot_img