{"id":94080,"date":"2023-09-24T21:53:39","date_gmt":"2023-09-24T21:53:39","guid":{"rendered":"https:\/\/arielle.com.au\/?p=94080"},"modified":"2026-01-22T04:46:30","modified_gmt":"2026-01-22T04:46:30","slug":"ethical-investing-in-australia","status":"publish","type":"post","link":"https:\/\/arielle.com.au\/ethical-investing-in-australia\/","title":{"rendered":"Ethical Investing In Australia (How To Start In 2026)"},"content":{"rendered":"<span class=\"span-reading-time rt-reading-time\" style=\"display: block;\"><span class=\"rt-label rt-prefix\">Reading Time: <\/span> <span class=\"rt-time\"> 7<\/span> <span class=\"rt-label rt-postfix\">minutes<\/span><\/span>\n<p>If you\u2019d prefer that your money doesn\u2019t support destructive, dirty or morally questionable industries and practices \u2014 but you still want to grow your wealth \u2014 there is a way to invest ethically.<\/p>\n\n\n\n<p>In light of the urgent need to address climate change globally, ethical investing has risen in prominence in Australia. <\/p>\n\n\n\n<div class=\"indent-wrapper\"><div class=\"indented-text\"><span>The number of new ethical funds launched in Australia <a href=\"https:\/\/www.rba.gov.au\/speeches\/2023\/sp-so-2023-08-08.html\">doubled in the last five years<\/a> compared to the prior five years, and ethical products now account for around $45 billion in assets under management.<\/span><\/div><\/div>\n\n\n\n<p>But what does ethical investing mean, and how can you eliminate the noise to determine the best investment opportunities aligned with your values? Read on to learn more.<\/p>\n\n\n\n<p><strong>(Related: <a href=\"https:\/\/arielle.com.au\/what-is-asx200\/\">What Is The ASX200 And How Does It Work?<\/a>)<\/strong><\/p>\n\n\n\n<div style=\"height:40px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>What Is Ethical Investing?<\/strong><\/h2>\n\n\n\n<p>If you feel strongly about certain issues or moral principles, ethical investing is a way to \u2018put your money where your mouth is.\u2019<\/p>\n\n\n\n<div class=\"wp-block-create-block-tip-block tip-wrapper\"><div class=\"row\"><div class=\"col-md-12\"><div class=\"card-wrapper\"><div class=\"card-title\"><div class=\"icon\"><svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"20\" height=\"20\" viewBox=\"0 0 20 20\" fill=\"none\"><path fill-rule=\"evenodd\" clip-rule=\"evenodd\" d=\"M7.5 14.33a5 5 0 1 1 5 0v4.17h-5v-4.17Zm4.25-1.3-.75.44V17H9v-3.53l-.75-.44a3.5 3.5 0 1 1 3.5 0Z\" fill=\"#656E83\"><\/path><path d=\"M9.25 1v2h1.5V1h-1.5ZM5.53 4.47l-1.5-1.5-1.06 1.06 1.5 1.5 1.06-1.06ZM15.53 5.53l1.5-1.5-1.06-1.06-1.5 1.5 1.06 1.06ZM1 10.75h2v-1.5H1v1.5ZM17 10.75h2v-1.5h-2v1.5Z\" fill=\"#656E83\"><\/path><\/svg><\/div><h3 placeholder=\"Tip Title Goes Here\">Important!<\/h3><\/div><div class=\"card-content\"><p placeholder=\"Tip Content Goes Here\">Any investment decision you make based on your beliefs about what is right or wrong \u2014 rather than solely on an expectation of financial gains \u2014 can be considered an ethical investment.<\/p><\/div><\/div><\/div><\/div><\/div>\n\n\n\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"586\" src=\"https:\/\/arielle.com.au\/wp-content\/uploads\/2023\/09\/sri-and-impact-investing-1024x586.jpg\" alt=\"\" class=\"wp-image-95041\" srcset=\"https:\/\/arielle.com.au\/wp-content\/uploads\/2023\/09\/sri-and-impact-investing-1024x586.jpg 1024w, https:\/\/arielle.com.au\/wp-content\/uploads\/2023\/09\/sri-and-impact-investing-300x172.jpg 300w, https:\/\/arielle.com.au\/wp-content\/uploads\/2023\/09\/sri-and-impact-investing-768x439.jpg 768w, https:\/\/arielle.com.au\/wp-content\/uploads\/2023\/09\/sri-and-impact-investing.jpg 1500w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n\n\n\n<p>However, the term is typically used to describe investing in companies or industries that objectively do good by meeting certain standards.<\/p>\n\n\n\n<div class=\"indent-wrapper\"><div class=\"indented-text\"><span>These may be voluntary &#8211; but are increasingly mandated by governments.\u00a0\u00a0<\/span><\/div><\/div>\n\n\n\n<p>There is a range of terms that encompass the concept of ethical investing, including:<\/p>\n\n\n\n<div class=\"arrow-wrapper\"><div class=\"arrow-list\"><ul><li><strong>Sustainable Or Socially Responsible Investing (SRI)<\/strong>. This also goes by names like \u2018green investing\u2019 and \u2018responsible investing\u2019. The approach primarily focuses on divesting from companies undertaking harmful activities with unacceptable downside risks for people and the environment (e.g., tobacco, weapons manufacturing). But it\u2019s also about targeting companies that care about creating a healthy society and planet.<\/li><li><strong>ESG investing. <\/strong>ESG stands for environmental, social and governance. Many corporations report their ESG performance based on various voluntary frameworks and regulated obligations. Investors can use these to evaluate a company\u2019s level of risk, accountability and ability to achieve sustainable growth.<\/li><li><strong>Impact Investing.<\/strong> Whereby investors direct their capital towards organisations, social enterprises and funds, making a positive difference to a specific cause, problem or non-profit industries that improve outcomes for both humans and nature.<\/li><\/ul><\/div><\/div>\n\n\n\n<p><strong>(Related: <a href=\"https:\/\/arielle.com.au\/best-stock-trading-app-australia\/\">Best Stock Trading Apps In Australia<\/a>).<\/strong><\/p>\n\n\n\n<div style=\"height:40px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>What Are The Upsides Of Ethical Investing?<\/strong><\/h2>\n\n\n\n<p>The upsides of investing in ethical ventures may include:<\/p>\n\n\n\n<div class=\"arrow-wrapper\"><div class=\"arrow-list\"><ul><li><strong>Being able to sleep at night<\/strong> knowing your money isn\u2019t doing harm or is actively supporting companies focused on making the world a better place.<\/li><li><strong>Getting ahead of regulatory change<\/strong> and consumer trends, in recognition that governments and corporations are under increased scrutiny to act to protect the environment and vulnerable communities. Ethical investing could help to de-risk your portfolio.<\/li><li><strong>Superior resilience of ESG-focused companies<\/strong> in an increasingly volatile world where the risks of climate change (e.g., natural disasters and displacement) and other threats can have a tangible impact on a company\u2019s capacity to remain operational and profitable.<\/li><\/ul><\/div><\/div>\n\n\n\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"791\" src=\"https:\/\/arielle.com.au\/wp-content\/uploads\/2023\/09\/impact-investing-1024x791.jpg\" alt=\"\" class=\"wp-image-95050\" srcset=\"https:\/\/arielle.com.au\/wp-content\/uploads\/2023\/09\/impact-investing-1024x791.jpg 1024w, https:\/\/arielle.com.au\/wp-content\/uploads\/2023\/09\/impact-investing-300x232.jpg 300w, https:\/\/arielle.com.au\/wp-content\/uploads\/2023\/09\/impact-investing-768x593.jpg 768w, https:\/\/arielle.com.au\/wp-content\/uploads\/2023\/09\/impact-investing.jpg 1500w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n\n\n\n<p>Everyone has different \u2018hard limits\u2019, but ethical investors may seek to avoid owning a stake in companies involved in:<\/p>\n\n\n\n<div class=\"arrow-wrapper\"><div class=\"arrow-list\"><ul><li><strong>Alcohol<\/strong>, big pharma, casinos, gambling, pornography.<\/li><li><strong>Fossil fuels,<\/strong> coal mining\u00a0and mining of other precious minerals.<\/li><li><strong>Deforestation,<\/strong> water pollution and biodiversity loss.<\/li><li><strong>Weapons and ammunition, <\/strong>or <a href=\"https:\/\/responsibleinvestment.org\/the-toll-of-armed-conflict-on-human-rights-a-toolkit-for-investors-and-what-they-can-do-before-during-and-after-it-arises\/\">links to armed conflict<\/a>.<\/li><li><strong>Human rights abuses, <\/strong>human trafficking and slavery.<\/li><li><strong>Anti-competitive behaviour<\/strong> and corruption.<\/li><li><strong>Animal cruelty <\/strong>and unethical medical research.<\/li><\/ul><\/div><\/div>\n\n\n\n<p><strong>(Related: <a href=\"https:\/\/arielle.com.au\/how-to-trade-commodities\/\">How To Start Trading Commodities<\/a>).<\/strong><\/p>\n\n\n\n<div style=\"height:40px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>What Are The Downsides Of Ethical Investing?<\/strong><\/h2>\n\n\n\n<p>The major dilemma for ethical investors is how to create a portfolio balanced between ethical concerns and the ability to generate profits and\/or income to meet your investing goals.&nbsp;<\/p>\n\n\n\n<p>Limiting the range of companies or sectors you invest in limits your opportunities to make returns.<\/p>\n\n\n\n<p><strong>(Related: <a href=\"https:\/\/arielle.com.au\/how-to-buy-microsoft-msft-stocks-shares\/\">How To Buy Microsoft Shares In Australia<\/a>).<\/strong><\/p>\n\n\n\n<div class=\"indent-wrapper\"><div class=\"indented-text\"><span><em>Some of the largest and most profitable companies that seem like a solid investment might not fit the bill if you scrutinise their activities from an ethical standpoint (e.g., US tech giant Microsoft, which has faced allegations of unfair practices and hefty bribes).<\/em><\/span><\/div><\/div>\n\n\n\n<p>Compounding this impact on returns is that ethical funds may attract higher management fees.&nbsp;<\/p>\n\n\n\n<p>Other barriers to ethical investing can include:<\/p>\n\n\n\n<div class=\"arrow-wrapper\"><div class=\"arrow-list\"><ul><li><strong>Lack of clarity about ESG<\/strong> performance and difficulty in gauging what will drive sustainability and societal benefits.<\/li><li><strong>Emerging ethical ventures may pose a higher risk<\/strong> of failure. For example, perhaps you\u2019re keen to support zero-emission vehicles by investing in battery technology. As it\u2019s unclear how the technology will evolve and which companies will become leaders, you risk capital losses.<\/li><\/ul><\/div><\/div>\n\n\n\n<p><strong>(Related: <a href=\"https:\/\/arielle.com.au\/best-stock-trading-app-australia\/\">Best Stock Trading Apps In Australia<\/a>).<\/strong><\/p>\n\n\n\n<div style=\"height:40px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>The Rise Of ESG Investing in Australia.<\/strong><\/h2>\n\n\n\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"791\" src=\"https:\/\/arielle.com.au\/wp-content\/uploads\/2023\/09\/assets-under-management-in-esg-funds-1024x791.jpg\" alt=\"\" class=\"wp-image-95037\" srcset=\"https:\/\/arielle.com.au\/wp-content\/uploads\/2023\/09\/assets-under-management-in-esg-funds-1024x791.jpg 1024w, https:\/\/arielle.com.au\/wp-content\/uploads\/2023\/09\/assets-under-management-in-esg-funds-300x232.jpg 300w, https:\/\/arielle.com.au\/wp-content\/uploads\/2023\/09\/assets-under-management-in-esg-funds-768x593.jpg 768w, https:\/\/arielle.com.au\/wp-content\/uploads\/2023\/09\/assets-under-management-in-esg-funds.jpg 1500w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n\n\n\n<p><em>Above: ESG investing set a record in 2019.<\/em><\/p>\n\n\n\n<p>With more companies in Australia and around the world reporting on ESG, it has become a valuable source of research and benchmarking for many ethical investors.<\/p>\n\n\n\n<div class=\"indent-wrapper\"><div class=\"indented-text\"><span><a href=\"https:\/\/www.asx.com.au\/blog\/listed-at-asx\/australians-maintain-fascination-for-investing\"><em>The 2023 ASX Investor Study<\/em><\/a><em> shows that 31% of Australian investors are ESG conscious, and 23% bought or sold investments last year based on environmental factors.\u00a0\u00a0<\/em><\/span><\/div><\/div>\n\n\n\n<p>Companies who care about ESG principles might commit to:<\/p>\n\n\n\n<div class=\"arrow-wrapper\"><div class=\"arrow-list\"><ul><li><strong>Reducing emissions, <\/strong>mitigating climate impacts and improving energy efficiency.<\/li><li><strong>Supporting environmental rehabilitation<\/strong> and biodiversity protection.<\/li><li><strong>Maintaining strong governance<\/strong> processes within its leadership.<\/li><li><strong>Operating compliantly<\/strong>, honestly and transparently.<\/li><li><strong>Avoiding suppliers that exploit workers<\/strong> or condone child labour.<\/li><li><strong>Hiring for diversity and gender equality<\/strong> within its own business.<\/li><\/ul><\/div><\/div>\n\n\n\n<p>By understanding how effectively a company manages ESG, and adjusting your portfolio accordingly, you can take a holistic approach to ethical investing. <\/p>\n\n\n\n<p><strong>(Related: <a href=\"https:\/\/arielle.com.au\/how-to-buy-gold-in-australia\/\">How To Start Investing In Gold<\/a>).<\/strong><\/p>\n\n\n\n<p>This would help you consider the company&#8217;s commitment to sustainability, how responsibly a company manages its workforce operations, and whether it contributes to the community.<\/p>\n\n\n\n<div class=\"wp-block-create-block-tip-block tip-wrapper\"><div class=\"row\"><div class=\"col-md-12\"><div class=\"card-wrapper\"><div class=\"card-title\"><div class=\"icon\"><svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"20\" height=\"20\" viewBox=\"0 0 20 20\" fill=\"none\"><path fill-rule=\"evenodd\" clip-rule=\"evenodd\" d=\"M7.5 14.33a5 5 0 1 1 5 0v4.17h-5v-4.17Zm4.25-1.3-.75.44V17H9v-3.53l-.75-.44a3.5 3.5 0 1 1 3.5 0Z\" fill=\"#656E83\"><\/path><path d=\"M9.25 1v2h1.5V1h-1.5ZM5.53 4.47l-1.5-1.5-1.06 1.06 1.5 1.5 1.06-1.06ZM15.53 5.53l1.5-1.5-1.06-1.06-1.5 1.5 1.06 1.06ZM1 10.75h2v-1.5H1v1.5ZM17 10.75h2v-1.5h-2v1.5Z\" fill=\"#656E83\"><\/path><\/svg><\/div><h3 placeholder=\"Tip Title Goes Here\">Important!<\/h3><\/div><div class=\"card-content\"><p placeholder=\"Tip Content Goes Here\">Some argue that ethical business practices drive returns. What does the research say? Researchers from NYU Stern Center for Sustainable Business conducted a <a href=\"https:\/\/www.stern.nyu.edu\/sites\/default\/files\/assets\/documents\/NYU-RAM_ESG-Paper_2021%20Rev_0.pdf\">meta-analysis of over 1,000 studies<\/a> into the relationship between ESG and financial performance. They found 58% of studies revealed a positive correlation between ESG and improved metrics, including return on equity and assets (ROE\/ROA), or stock price \u2014 compared to only 8% showing a negative relationship.<\/p><\/div><\/div><\/div><\/div><\/div>\n\n\n\n<div style=\"height:40px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>How Is ESG Measured And Reported?<\/strong><\/h2>\n\n\n\n<p>Companies commit to varying ESG goals, and may use multiple, differing methodologies to benchmark their reporting.<\/p>\n\n\n\n<p>This can make it confusing for you to understand the comparative performance of a company within a market or the relevance of ESG progress to a company\u2019s future prospects.<\/p>\n\n\n\n<div class=\"indent-wrapper\"><div class=\"indented-text\"><span><em>In fact, 16% of Australian investors said <strong>they found it difficult<\/strong> to find the ESG standing of a company, according to ASX\u2019s recent survey.<\/em><\/span><\/div><\/div>\n\n\n\n<p>For example, Australian companies widely adopt the <a href=\"https:\/\/www.globalreporting.org\/news\/news-center\/four-in-five-largest-global-companies-report-with-gri\/\">Global Reporting Initiative (GRI)<\/a> standards. <\/p>\n\n\n\n<p>Plus, around three-quarters of Australia\u2019s top companies report against the <a href=\"https:\/\/tnfd.global\/\">Taskforce on Climate-related Financial Disclosures (TCFD)<\/a> framework.<\/p>\n\n\n\n<p>A <a href=\"https:\/\/www.pwc.com.au\/assurance\/environmental-social-and-governance-reporting.html\">PwC analysis of ESG reporting<\/a> across ASX200 companies in 2022 found that:<\/p>\n\n\n\n<div class=\"arrow-wrapper\"><div class=\"arrow-list\"><ul><li><strong>Around half disclosed a net zero target<\/strong>, but only 55% of those incorporated information about their transition plan or the activities that will help them achieve the target.<\/li><li><strong>55% identified climate change as a current or emerging risk<\/strong>, but only 18% mentioned the potential impact of climate risks\/opportunities on their financial position over time.<\/li><\/ul><\/div><\/div>\n\n\n\n<div class=\"wp-block-create-block-tip-block tip-wrapper\"><div class=\"row\"><div class=\"col-md-12\"><div class=\"card-wrapper\"><div class=\"card-title\"><div class=\"icon\"><svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"20\" height=\"20\" viewBox=\"0 0 20 20\" fill=\"none\"><path fill-rule=\"evenodd\" clip-rule=\"evenodd\" d=\"M7.5 14.33a5 5 0 1 1 5 0v4.17h-5v-4.17Zm4.25-1.3-.75.44V17H9v-3.53l-.75-.44a3.5 3.5 0 1 1 3.5 0Z\" fill=\"#656E83\"><\/path><path d=\"M9.25 1v2h1.5V1h-1.5ZM5.53 4.47l-1.5-1.5-1.06 1.06 1.5 1.5 1.06-1.06ZM15.53 5.53l1.5-1.5-1.06-1.06-1.5 1.5 1.06 1.06ZM1 10.75h2v-1.5H1v1.5ZM17 10.75h2v-1.5h-2v1.5Z\" fill=\"#656E83\"><\/path><\/svg><\/div><h3 placeholder=\"Tip Title Goes Here\">Expert Tip<\/h3><\/div><div class=\"card-content\"><p placeholder=\"Tip Content Goes Here\">Reporting obligations for climate risks became more standardised with new Australian Treasury mandates coming into effect from 1 July 2024. The new disclosure framework requires companies and financial\/investment firms to show how they\u2019ve evaluated their climate-related risks and opportunities and factored this into their business model.<\/p><\/div><\/div><\/div><\/div><\/div>\n\n\n\n<div style=\"height:40px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>How To Start Investing Ethically In Australia?<\/strong><\/h2>\n\n\n\n<p>First, take stock of what matters most to you before building or rebalancing a portfolio in alignment with your ethics.<\/p>\n\n\n\n<p>To critically evaluate whether an opportunity fits within your definition of an \u2018ethical\u2019 investment:<\/p>\n\n\n\n<div class=\"arrow-wrapper\"><div class=\"arrow-list\"><ul><li><strong>Take a closer look at a company\u2019s operations,<\/strong> including supply chains, partnerships, financial commitments and philanthropic efforts.<\/li><li><strong>Stay informed<\/strong> by reading a company\u2019s official strategies and statements, following the news, and research from groups like <a href=\"https:\/\/responsibleinvestment.org\/\">Responsible Investment Association of Australasia (RIAA)<\/a>.<\/li><li><strong>Improve your understanding of performance measurement<\/strong>, disclosure and reporting processes that corporations adhere to.<\/li><\/ul><\/div><\/div>\n\n\n\n<p>Key investment products that offer exposure to ethical assets include:<\/p>\n\n\n\n<div class=\"arrow-wrapper\"><div class=\"arrow-list\"><ul><li><strong>Individual shares<\/strong> in companies that match your moral code.<\/li><li><strong>ETFs focused on sustainability<\/strong> and ethical business.<\/li><li><strong>Thematic ETFs<\/strong> are funds that focus on health care, clean tech or renewable energy.<\/li><li><strong>Ethical robo-advisors <\/strong>like <a href=\"https:\/\/www.stockspot.com.au\/sustainable-investing\/\">Stockspot\u2019s sustainable portfolio<\/a>.<\/li><li><strong>Ethical financial institutions and super funds <\/strong>such as Bank Australia and Ethical Super.<\/li><\/ul><\/div><\/div>\n\n\n\n<p><strong>(Related: <a href=\"https:\/\/arielle.com.au\/interest-rate-forecast-australia\/\">Interest Rate Forecast: When Will RBA Cut Rates?<\/a>)<\/strong><\/p>\n\n\n\n<div style=\"height:40px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Two Common Screening Methods For Ethical Investors<\/strong>.<\/h2>\n\n\n\n<p>Ethical investors typically screen potential investments in two ways:<\/p>\n\n\n\n<div class=\"arrow-wrapper\"><div class=\"arrow-list\"><ul><li><strong>Exclude companies that don\u2019t meet your desired standards <\/strong>and beliefs, based on poor ESG performance, past unethical behaviour, or inherent incompatibility with a sustainable, healthy future. This is also called a negative screening.<\/li><li><strong>Actively select companies based on strong ESG practices<\/strong>, or based on promising sustainability or impact results (aka positive screening).<\/li><\/ul><\/div><\/div>\n\n\n\n<p>If you have an existing portfolio, removing stocks or funds that don\u2019t align with your ethics may be more convenient. <\/p>\n\n\n\n<p>If you\u2019re building a portfolio from scratch, you may take the time and effort to find and include only those companies or products that you deem highly worthy.<\/p>\n\n\n\n<p><strong>(Related: <a href=\"https:\/\/arielle.com.au\/forex-trading-scams\/\">How To Spot Forex Trading Scams<\/a>).<\/strong><\/p>\n\n\n\n<div style=\"height:40px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Carefully Assess Ethical Funds<\/strong>.<\/h2>\n\n\n\n<p>Exchange-traded, managed, and super funds have varying approaches to selecting underlying holdings to provide investors with a sustainable or ethical option. <\/p>\n\n\n\n<p>For example:<\/p>\n\n\n\n<div class=\"arrow-wrapper\"><div class=\"arrow-list\"><ul><li><strong>Betashares Australian Sustainability Leaders ETF<\/strong> (FAIR) excludes fossil fuel exposed operations and also looks at each company\u2019s alignment with the <a href=\"https:\/\/sdgs.un.org\/goals\">United Nations Sustainable Development Goals<\/a>.<\/li><li><strong>iShares ETFs provide information on its product\u2019s \u2018sustainability characteristics\u2019<\/strong> based on <a href=\"https:\/\/www.msci.com\/our-solutions\/esg-investing\/esg-fund-ratings-climate-search-tool\">measures of the underlying holdings\u2019 ESG performance<\/a> conducted by investment industry research firm Morgan Stanley Capital International (MSCI).<\/li><\/ul><\/div><\/div>\n\n\n\n<p>No matter how it\u2019s marketed, the companies included in any fund may not gel with your views on what\u2019s ethical or sustainable, so research each product carefully.<\/p>\n\n\n\n<p>Consumer advocacy groups have criticised some sustainable funds for continuing to include major banks (who often finance fossil fuel projects), and for <a href=\"https:\/\/www.investmentmagazine.com.au\/2023\/03\/super-funds-pressured-by-anti-green-washing-push\/\">exaggerated or misleading green credentials<\/a> (aka greenwashing).<\/p>\n\n\n\n<div style=\"height:40px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>The Bottom Line For Australian Ethical Investors?<\/strong><\/h2>\n\n\n\n<p>It\u2019s possible to grow your wealth and do good by investing your money thoughtfully. <\/p>\n\n\n\n<p>Add an ethical lens when considering specific investment opportunities and risks, and the composition of your portfolio.<\/p>\n\n\n\n<p>The key is: reflecting on what \u2018doing good\u2019 means to you, and taking the time to evaluate companies or funds for ongoing strong alignment with your ethics.<\/p>\n\n\n\n<div class=\"wp-block-create-block-tip-block tip-wrapper\"><div class=\"row\"><div class=\"col-md-12\"><div class=\"card-wrapper\"><div class=\"card-title\"><div class=\"icon\"><svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"20\" height=\"20\" viewBox=\"0 0 20 20\" fill=\"none\"><path fill-rule=\"evenodd\" clip-rule=\"evenodd\" d=\"M7.5 14.33a5 5 0 1 1 5 0v4.17h-5v-4.17Zm4.25-1.3-.75.44V17H9v-3.53l-.75-.44a3.5 3.5 0 1 1 3.5 0Z\" fill=\"#656E83\"><\/path><path d=\"M9.25 1v2h1.5V1h-1.5ZM5.53 4.47l-1.5-1.5-1.06 1.06 1.5 1.5 1.06-1.06ZM15.53 5.53l1.5-1.5-1.06-1.06-1.5 1.5 1.06 1.06ZM1 10.75h2v-1.5H1v1.5ZM17 10.75h2v-1.5h-2v1.5Z\" fill=\"#656E83\"><\/path><\/svg><\/div><h3 placeholder=\"Tip Title Goes Here\">Disclaimer.<\/h3><\/div><div class=\"card-content\"><p placeholder=\"Tip Content Goes Here\">The information presented here is general in nature and does not endorse any investment product, market, provider, or service. It is not intended as financial advice or a recommendation to trade &#8211; or not to trade. Trading futures, shares, ETFs, options, CFDs, and forex involves a high level of risk and may result in significant losses, particularly when leverage is used. Past performance does not guarantee future results. Before trading, consider whether the product is appropriate for your circumstances and seek independent professional advice. Refer to the relevant Product Disclosure Statement (PDS) and Target Market Determination (TMD) on the provider\u2019s website.<\/p><\/div><\/div><\/div><\/div><\/div>\n\n\n\n<div style=\"height:34px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<p>Jody<\/p>\n\n\n\n<div style=\"height:47px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n","protected":false},"excerpt":{"rendered":"<p><span class=\"span-reading-time rt-reading-time\" style=\"display: block;\"><span class=\"rt-label rt-prefix\">Reading Time: <\/span> <span class=\"rt-time\"> 7<\/span> <span class=\"rt-label rt-postfix\">minutes<\/span><\/span>If you\u2019d prefer that your money doesn\u2019t support destructive, dirty or morally questionable industries and practices \u2014 but you still<\/p>\n","protected":false},"author":14,"featured_media":95011,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"_uag_custom_page_level_css":"","_lmt_disableupdate":"","_lmt_disable":"","footnotes":""},"categories":[267,304],"tags":[],"class_list":["post-94080","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-money","category-start-share-trading"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.0 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Ethical Investing In Australia (How To Start In 2026)<\/title>\n<meta name=\"description\" content=\"Ethical investing, also known as green investing, is an investment strategy where your values guide your investment decisions.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" 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During my 20+ year career, I've reported for Australian business publications and bodies, including Forbes, The Chainsaw and NSW Business Chamber.","sameAs":["https:\/\/www.linkedin.com\/in\/contentquill\/"],"url":"https:\/\/arielle.com.au\/author\/jody\/"}]}},"modified_by":"Steven McConnell","uagb_featured_image_src":{"full":["https:\/\/arielle.com.au\/wp-content\/uploads\/2023\/09\/what-is-ethical-investing.jpg",1490,838,false],"thumbnail":["https:\/\/arielle.com.au\/wp-content\/uploads\/2023\/09\/what-is-ethical-investing-150x150.jpg",150,150,true],"medium":["https:\/\/arielle.com.au\/wp-content\/uploads\/2023\/09\/what-is-ethical-investing-300x169.jpg",300,169,true],"medium_large":["https:\/\/arielle.com.au\/wp-content\/uploads\/2023\/09\/what-is-ethical-investing-768x432.jpg",768,432,true],"large":["https:\/\/arielle.com.au\/wp-content\/uploads\/2023\/09\/what-is-ethical-investing-1024x576.jpg",1024,576,true],"1536x1536":["https:\/\/arielle.com.au\/wp-content\/uploads\/2023\/09\/what-is-ethical-investing.jpg",1490,838,false],"2048x2048":["https:\/\/arielle.com.au\/wp-content\/uploads\/2023\/09\/what-is-ethical-investing.jpg",1490,838,false],"alm-thumbnail":["https:\/\/arielle.com.au\/wp-content\/uploads\/2023\/09\/what-is-ethical-investing-150x150.jpg",150,150,true]},"uagb_author_info":{"display_name":"Jody McDonald","author_link":"https:\/\/arielle.com.au\/author\/jody\/"},"uagb_comment_info":4,"uagb_excerpt":"Reading Time: 7 minutesIf you\u2019d prefer that your money doesn\u2019t support destructive, dirty or morally questionable industries and practices \u2014 but you still","_links":{"self":[{"href":"https:\/\/arielle.com.au\/wp-json\/wp\/v2\/posts\/94080","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/arielle.com.au\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/arielle.com.au\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/arielle.com.au\/wp-json\/wp\/v2\/users\/14"}],"replies":[{"embeddable":true,"href":"https:\/\/arielle.com.au\/wp-json\/wp\/v2\/comments?post=94080"}],"version-history":[{"count":35,"href":"https:\/\/arielle.com.au\/wp-json\/wp\/v2\/posts\/94080\/revisions"}],"predecessor-version":[{"id":121720,"href":"https:\/\/arielle.com.au\/wp-json\/wp\/v2\/posts\/94080\/revisions\/121720"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/arielle.com.au\/wp-json\/wp\/v2\/media\/95011"}],"wp:attachment":[{"href":"https:\/\/arielle.com.au\/wp-json\/wp\/v2\/media?parent=94080"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/arielle.com.au\/wp-json\/wp\/v2\/categories?post=94080"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/arielle.com.au\/wp-json\/wp\/v2\/tags?post=94080"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}