About this report

The Responsible Investment Benchmark Report Australia 2024, prepared by the Responsible Investment Association Australasia (RIAA) in partnership with EY, provides the 23rd annual analysis of Australia’s responsible investment (RI) market. Covering January to December 2023, the report assesses the size, growth, and quality of responsible investment against the broader financial market. It evaluates 291 investment managers active in Australia—the Research Universe—including survey data from 66 organisations and desktop analysis of 225. Ninety managers achieved scores of 15 or higher on RIAA’s Responsible Investment Scorecard and were recognised as Responsible Investors or Responsible Investment Leaders. Collectively, they represent a broad range of asset managers, superannuation funds, and financial institutions driving ESG integration and stewardship in Australia.

About RIAA

Established in 2000, RIAA promotes responsible investment and a sustainable financial system across Australia and New Zealand. The organisation represents more than 500 members managing over A$76 trillion globally and administers the world’s longest-running certification program for responsible investment products. Its work includes research, education, and advocacy to align capital with long-term social and environmental outcomes.

Responsible investing in 2023

The year 2023 was marked by strong regulatory and policy momentum globally and domestically. In Australia, the Federal Government advanced its Sustainable Finance Strategy, introduced a sovereign green bond program, and initiated consultations on mandatory climate-related financial disclosures. The Australian Securities and Investments Commission (ASIC) intensified enforcement against greenwashing, while the Australian Prudential Regulation Authority (APRA) updated its superannuation guidance. Internationally, the International Sustainability Standards Board (ISSB) released global sustainability disclosure standards, the European Union (EU) expanded its taxonomy, and the United Kingdom updated its Green Finance Strategy.

The responsible investment market in 2023

Australia’s responsible investment market continued to expand, with total managed funds reaching A$3.9 trillion and responsible investment assets rising to A$1.6 trillion, representing 41% of total assets—a 24% increase from 2022. The number of Responsible Investment Leaders increased to 61, and the average share of responsibly managed assets rose to 86.6% of AUM. Transparency improved significantly, with 86% of managers publicly disclosing ESG policies and 60% publishing full portfolio holdings.

RIAA certification and the performance of RI

RIAA’s Certification Program recognised 83 newly certified products in 2023, bringing the total to 339 across Australia and New Zealand. Certified products spanned multiple asset classes, led by diversified or multi-asset (42%) and international equity strategies (29%). Over the medium to long term, RIAA-certified funds continued to outperform market benchmarks. Australian share funds returned 13.20% over ten years, compared with 9.19% for the market average.

Responsible investment approaches

The report categorises ESG practices across seven recognised approaches—ESG integration, stewardship, exclusionary screening, norms-based screening, positive screening, thematic investment, and impact investment. ESG integration and stewardship remain dominant, used by 99% and 98% of managers respectively. Positive and norms-based screening gained momentum, reflecting investor preference for proactive engagement and best-in-class selection. Impact investment rose to 8% of AUM, with leading themes including clean energy, financial inclusion, and affordable housing.

Market drivers and future trends

Demand from institutional investors remained the strongest market driver, increasing to 53%, while greenwashing concerns emerged as the leading barrier at 52%. Performance concerns declined, reflecting greater investor confidence in RI strategies. The report concludes that regulatory clarity, transparency, and credible data will be essential for maintaining trust as responsible investment becomes a mainstream feature of Australia’s financial system.