Responsible Investing
and Sustainable Practices

Australian investors have voted with their feet when it comes to responsible investing, with the Responsible Investment (RI) Benchmark Report Australia 2024 showing that the Australian RI market grew to $1.6 trillion in 2023, with more of the market self-declaring as practicing RI.

Responsible (or ethical, or sustainable) investing has evolved from a focus on blunt exclusions, screening-out certain companies or industries such as fossil fuels, tobacco or weapons, to actually investing to create a positive impact on the environment or society.

This is particularly the case with younger investors, who are seeking to align their portfolios with their values.

As the advice and investment management industries’ clients have demonstrated increasing determination to invest in this manner, advice firms have had to meet these higher expectations, embrace the challenge and lift their game.

In the August edition of the INPractice online webinar series, The Inside Network will offer attendees an overview of responsible investing and sustainable financial practices, demonstrating the knowledge and tools to integrate environmental, social and governance (ESG) factors into client portfolios. Advisers will learn how to align investment strategies with ethical, environmental and social considerations while ensuring that financial returns and investment goals are not compromised.

The main topics to be covered will include:

• Strategies for Implementing ESG in Portfolios: Practical guidance on how to incorporate ESG factors into investment strategies, from selecting ESG-compliant funds to evaluating individual company practices and aligning portfolios with client values;

• Performance and Risk Considerations: Addressing common concerns about the financial performance of sustainable investments, with evidence and data on the risk-return profiles of ESG investments and how they compare to traditional approaches; and

• Client Engagement and Education: Effective communication strategies for discussing responsible investing with clients, understanding their values and preferences, and tailoring investment solutions to meet both financial and ethical goals.

The session will equip advisers to navigate the growing field of responsible investing, help clients achieve both financial and ethical objectives, and stay ahead of trends in sustainable finance.