Responsible investing

Responsible investing goes by many names – ethical, sustainable, socially aware, ESG (which stands for Environmental, Social, and Governance) – but all have the same goal. That is, the alignment of your values with your investments.

Most large super funds now offer responsible investment options, while SMSF investors have a wide range of sustainable managed funds and ETFs (exchange-traded funds) to choose from.

In the past, debate centred on whether investing according to your conscience was at the cost of returns. But that question has been settled with sustainable investments performing as well as, or sometimes better than, their mainstream peers.