Giving the Government a helping hand

Governments of the world continue to grapple with action and solutions for addressing climate change and the environment. Whatever solutions they finally agree on will have an impact on the profitability of companies all over the world. Those companies that are helping to reduce carbon will receive benefits, both financial (competitive advantage, efficiency gains), and social (reputational benefits and employee loyalty).

Responsible investment gives you the chance to do what governments of the world have not or will not. RI is a way to ensure that your money is directed towards those companies that are making a positive impact on the environment, and away from those companies that cause harm. You can directly encourage good corporate behaviour by directing your investments and super into companies whose practices you support.

The most common reasons why people become responsible investors are:

• To generate positive returns while making a difference.
• To direct their money to companies making a positive difference while avoiding those that cause harm
• To influence corporate behaviours, and push for greater accountability on issues like sustainability and governance.
• To take their activism to another level.

There are RI solutions for every risk profile, time frame and stage of life. You can make a difference and help to contribute to causes and issues that you believe in. Or you can wait for the Governments of the world to act. We are having enough problems with even deciding on one.

Demand for Responsible Investment is increasing

The Global Financial Crisis has made more people aware of the importance of considering good corporate ethics, governance and environmental issues when examining the future worth of any investment.

Once upon a time responsible investment (RI) was considered a niche market. Today responsible investors come from all walks of life and the issues that motivate them are universal.

• They may have an interest in social issues, be a member of community, environmental, political or human rights groups.
• They could have a science background and be passionate about new energy technologies as a way of solving the problem of climate change.
• They may belong to a faith based or other spiritual organisation, or they might want to be close to nature and might just want to ensure its' preservation.

RI appeals to people from all age groups and all social backgrounds.

The most common reasons why people decide to become responsible investors are:

• To generate competitive returns whilst making a difference to the environment or society.
  
• To ensure your money is directed towards companies making a positive difference to the environment and the impact of climate change whilst avoiding those that cause harm.
  
• As a way to influence corporate behaviour and push for greater accountability on issues like employment and trade conditions, environmental sustainability and good corporate governance.
  
• To take your social or consumer activism to the next level.
  

As far as the GFC is concerned, adopting an RI strategy is an excellent way to facilitate improvements in corporate responsibility.

In summary then, the way you invest inside and outside of super can help you make competitive returns, as well as having a positive impact on the environment, socisal issues, and corporate behaviour.

That only leaves one question; What is YOUR money up to?

What's your money up to?

We all want our super and savings to be safe and earn a solid rate of return. But do you care about other things too? You might be worried about climate change, the provision of affordable health care services or managing our resources to meet our current needs and those of our aging and growing population.

Responsible investment (or ethical, sustainable, ESG or green investing) gives you a way to generate returns over the long term, using a sustainable investment strategy that reflects your personally held values. Investing responsibly is also a way to support and benefit from environmentally friendly technologies, sustainable agriculture, recycling and waste management and green infrastructure.

Finally, recent reports have shown that responsible investment can even outperform more 'mainstream' investments. So responsible investment can be a way to generate competitive returns and find solutions to many of the problems of the 21st century.

To get started, you just need to ask yourself; What's YOUR money up to?