What is really behind Responsible Investing and ESG ratings?

Responsible investing is generally acknowledged as the inclusion of factors, such as environmental and societal issues, into the investment process alongside the traditional financial analysis.

Recently, we saw the Responsible Investment Association Australasia (RIAA) release its annual benchmark report for 2021. This report assesses Aotearoa’s fund managers and the Responsible Investment (RI) practices they undertake.

As a pleasing sign of progress, the report showed that funds with leading Responsible Investment practices are approaching up to half of New Zealand’s professionally managed funds at $142 billion. 

RIAA as an organisation aims to be recognised as Australasia’s authority on Responsible Investing standards and practices. It has more than 450 members managing over US$29 trillion in assets globally. Its mission is to “promote, advocate for, and support approaches to Responsible Investment that aligns capital with achieving a healthy and sustainable society, environment and economy”.