Since 1 July 2005 many Australians now have a choice of super fund - that is, they can choose where their Superannuation Guarantee contributions paid by their employers are invested. Collectively our superannuation is being invested in a variety of ways - shares and property for example - but is that money being invested the way you’d like?
Sustainable Responsible Investment (SRI), also known as “ethical” or “socially responsible” investment, is one way to have your superannuation investments work for a sustainable future.
As at 30 June 2004, superannuation investments in Australia totaled more than $630 billion dollars1. Of that total $21.5 billion2, just 3.4%, is invested in SRI assets. As more people move their super into SRI options, SRI’s influence will grow - meaning more investment in areas that are important to you, like the future of our planet!
Getting Started
A growing number of SRI options are available within super funds. The Ethical Investment Association has a superannuation guide which explains SRI options and how to get started. They also provide lists of available SRI options and details of financial advisers with specific knowledge about SRI.
As with any financial decision, you should speak to appropriate advisers (e.g. financial, accountant, legal) to discuss your options and your specific circumstances.
If you find a fund you want your super to go to, speak to your employer about moving your super over. You’ll have to fill out a few forms, but it shouldn’t take much more than that.
If you are an employer, why not consider offering an SRI fund to your employees, letting them know about SRI and potentially making the choice easier for them at the same time.
Find out more
- The Australian Government’s Super Choice information site
- EIA Superannuation Centre
- Ethical Investment Association (EIA)
- Ethical Investor magazine
- Association of Superannuation Funds of Australia (ASFA) Super Choice guide
Notes
- APRA Statistics - Annual Superannuation Bulletin June 2004 (PDF 604 KB): “Total superannuation assets increased by 17.3 per cent during the year to 30 June 2004 to stand at $630.9 billion.”
- EIA Socially Responsible Investment in Australia - 2004 (PDF 208 KB): “Nearly all forms of socially responsible investment (SRI) in Australia continued to grow dramatically over the past year - rising to at least $21.5 billion by 30 June 2004.”
Does GESB offer this? Alas, working for the government I only have one choice of super fund - and unlike my previous fund HESTA, I can’t find any option to invest my super in green organisations. This is something the government especially should be getting onto ASAP - especially since the organisation I work for is Environment and Conservation!