Fund managers offering ethical investments got a huge boost from the Australian Parliament last week when it passed the Financial Services Reform Bill (FSRB).
In a last minute amendment to the bill a clause was added which requires fund managers to disclose their policy on ethical investments.
Lawmakers in the United Kingdom recently passed a similar bill, however their one only applies to employer-sponsored schemes.
The Australian amendments, introduced by the Democrats, will require super funds and fund managers to outline the extent, if any, to which labour standards, and environmental, social or ethical considerations are taken into account in the selection, retention or realisation of their investments.
The Australian government had previously resisted such amendments, but endorsed the Democrats position to get the FSRB through parliament.
The change is been seen a major boon for the ethical investment industry.
This was evident in Australia's second annual Ethical Investment Conference which finished yesterday in Melbourne.
The number of attendees doubled from last year to about 300 according to event organisers.
Australia's Ethical Investment Association has welcomed the inclusion of the amendments in the FSRB, saying that these would encourage many superannuation funds to take up socially responsible investing.
A leading actuary David Knox told the conference that the weight of money going into companies which are considered to be ethical may drive their prices up in the short term.
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