Introduction

This report, commissioned by the Responsible Investment Association Australasia (RIAA) and conducted by Lonergan Research, explores Australians’ attitudes toward responsible and ethical investing. The findings show that responsible investment has grown significantly, with nearly half of Australia’s managed assets now invested through some form of responsible investment strategy. The rise in consumer sentiment for investments aligned with personal values is a key driver of this growth.

Australians increasingly expect their investments to contribute positively to society and the environment. The report highlights that responsible investing is shifting from being a niche approach to a mainstream expectation. It calls for greater accountability and transparency in how investments are managed, with a focus on understanding the impact of investment outcomes.

Methodology

The research was conducted by Lonergan Research following ISO 20252 standards. Surveys were completed online between 19 and 23 October 2017, capturing responses from 1,037 Australians aged 18 and over across both metropolitan and regional areas. The study examined the influence of social and environmental issues on Australians’ investment behaviour.

Main Findings

Expectations around responsible investment

Nine in ten Australians (92%) expect their superannuation or other investments to be managed responsibly and ethically. This marks a clear shift in public expectation from financial return alone to ethical alignment.

Propensity to change to a more responsible investment provider

Four in five Australians (78%) would consider switching their superannuation or investment provider if their current fund engaged in activities inconsistent with their values. Millennials are the most likely to switch, with 88% indicating they would change providers under such circumstances.

Importance of considering ESG issues alongside financial returns

Seventy per cent of Australians would prefer to invest in a super fund that considers environmental, social, and governance (ESG) issues as well as financial returns. This represents a 27% increase since 2013. Women (72%) and Millennials (75%) are particularly supportive of this approach.

Doing good versus avoiding doing harm

Eighty-five per cent of Australians believe it is important for super funds to invest responsibly, either by supporting positive initiatives such as clean energy infrastructure or by avoiding harmful industries like weapons manufacturing. Nearly half (46%) think super funds should both “do good” and “avoid harm.”

Consideration of making responsible investments

Currently, 22% of Australians are invested in ethical companies, funds, or superannuation products that create positive outcomes. A further 53% intend to consider such investments in the next five years, with 24% planning to do so within the next 12 months.

Social and environmental issues of interest and concern

Four in five Australians (82%) consider social issues when investing. The top priorities are renewable energy (48%), healthcare and medical products (45%), and sustainable practices (44%). In contrast, most Australians seek to avoid investments linked to animal cruelty (69%), human rights violations (62%), and pornography (56%).

Women show higher concern across all issues compared to men, particularly regarding healthcare, education, and environmental impact. Millennials are the most engaged generation in terms of considering societal issues when investing.

Consumer need for information

A key barrier to responsible investment uptake is the lack of independent information. Over half (56%) of respondents believe there is insufficient independent information on switching to a responsible or ethical super fund.

Importance of responsible investment certification

Independent certification is a critical factor for building consumer confidence. Eighty-six per cent of Australians state they are more likely to invest in organisations or products that have been certified by a third party for responsible investment practices. Millennials are again the most supportive (93%).

Role of advisers

Expectations of financial advisers are evolving. Nearly half (49%) of Australians expect their advisers to invest in funds aligned with their values, while 63% expect advisers to consider societal and environmental implications when making investment recommendations. Consumers now expect advisers to balance financial performance with value-based guidance.

Millennials and women

Millennials are the most likely to act on their beliefs, with 88% either already investing or planning to invest responsibly. They also show strong preference for certified responsible investment options (93%). Women demonstrate higher expectations than men regarding ethical investment, with 57% strongly expecting responsible management of their superannuation.

Conclusion

Australians increasingly demand that financial products and advisers align with their personal and societal values. Responsible investing is becoming an expectation rather than a choice, driven by Millennials and women in particular. The report highlights the need for transparency, independent certification, and better information to support investors’ growing commitment to ethical and sustainable finance