Socially responsible investing has come a long way over the past 15 years or so. It used to be a marginal activity, confined to government agencies and activists, and focused more on ‘negative screening’ by excluding companies that take part in activities like arms, tobacco, pornography, alcohol and gambling. There was also the perception that it could negatively affect your bottom line.
Now socially responsible investing is increasingly common as ordinary investors realise the power they hold to influence companies for the better. As such, it’s moving towards ‘positive screening’ with investment in companies whose products and services have a positive and sustainable effect on society and the environment. What’s more, investors are realising that socially responsible investments can perform just as well as other types of investment. As Peter Shergold, AMP Limited Director, asserts "[i]f you look at most socially responsible funds through the Global Financial Crisis and beyond, they've actually done pretty well compared to other funds."
So you may be able to more closely align your investment strategy with your ethical beliefs without affecting the performance of your super. In addition, there are links between an organisation’s environmental and social impact, the quality of its corporate governance, and its long-term business success.
What is socially responsible investing today?
Socially responsible investing takes environmental, social, ethical or governance considerations into account. It can involve investing in businesses and funds engaged in solving challenges such as:
- helping the working poor buy a home through microlending
- developing sustainable agriculture in developing countries
- building energy-efficient infrastructure like wind farms.
AMP Capital—making a difference
At AMP we like to talk about Environmental, Social and Corporate Governance (ESG) investing. And the issues are as important to us as they are to you.
As Australia’s largest responsible investment manager, our AMP Capital investment experts have over a decade of experience integrating ESG factors into investment decisions. A deeper understanding of ESG factors provides greater insight into areas of potential risk and opportunity that can impact the value, performance and reputation of the investments we make on your behalf.
Back in 2007 we were among the first companies to sign on to the Principles for Responsible Investment. We are committed to extending ESG integration across our mainstream investment activities.
So you can rest assured we are working to hold the companies in which your money is invested to account.
Take control of your super
If you want to make sure your money is invested in a way you are comfortable with, you should ask the hard questions. Remember, it’s your money. So you get to decide how it’s invested. And at AMP we can help you take control of your super and own your tomorrow.
If you’d like to know more about your investment options for your super, call us on 131 267 or talk to your financial adviser.