Investors warming to social responsibility
Socially responsible investment (SRI) in Australia has taken off, with funds under management jumping by 41 per cent to $21.5 billion over the 12 months ending June 30.
According to the latest SRI Benchmarking Survey, released last week, the sector grew by more than twice the rate of the Australian retail and wholesale investment market.
The survey claims assets invested in SRI have doubled since the first annual benchmarking study was released in 2001, and by a whopping 920 per cent since June 2000.
The $21.5 billion in assets include $3.3 billion in managed SRI funds and $168 million in private portfolios managed by financial advisers.
Religious bodies using SRI criteria have invested a total of $7.2 billion in the sector, with charitable trusts contributing more than $327 million and community finance entities $322 million.
The survey also found a growing number of superannuation funds are offering members the opportunity to invest in a socially responsible manner. Superannuation funds using an SRI overlay approach have $7.2 billion in assets, up by 40 per cent on last year.
The Ethical Investment Association (EIA) says the number of SRI managed funds have also increased substantially, up from 10 funds in 1996 to 46 in 2001 and 89 today.
The survey reveals a marked increase in shareholder activism since 2001, notably in respect to resolutions covering environmental or social issues.
The major activity was spearheaded by the Wilderness Society, which succeeded in gaining support for an anti-woodchipping resolution from 25 per cent of shareholders at a Commonwealth Bank AGM in October 2003.
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