Ask the experts: how do you make your money matter?

The Guardian

4 days ago

The rising cost of living undoubtedly affects the choices we can make, but research suggests Australian shoppers are still driven by their personal values.
Sustainability is one of the biggest considerations. When Monash University surveyed Australian shoppers in 2024, 46% said sustainability was an important factor when they were making a retail purchase, while 30% frequently looked for sustainable products. Ethical supply chains, animal welfare, and commitments to diversity and inclusion are also common considerations for consumers, other research has found.
This thinking affects decisions about products and services, but experts say to see real impact, we need to apply ethics to our financial and superannuation choices, too.
Many Australians already do this. Research conducted by the Responsible Investment Association Australasia (RIAA) found that in 2024, 88% of Australians expected their investments to be responsible and ethical, up from 83% in 2022, while 65% said they would invest more if their investments made a positive impact in the the world (up from 61% in 2022).
The RIAA's co-CEO, Estelle Parker, suggests we carefully consider our individual values when choosing where our money goes.
Almost all of us are investing in shares and other assets via the choices our super funds make on our behalf – which don't necessarily fit with our own values. Fortunately, it's easy to switch to a fund that's more aligned.
'The first thing is to decide what they want to achieve with their investment portfolio,' Parker says. 'People can look at the websites of the funds they're considering and make sure that those funds actually do support their values.'
Every super fund is legally required to disclose its investments, but the disclosure isn't always that easy to find or understand. Fortunately, there are tools that can help. Parker recommends checking out Responsible Returns, an independent source of information about super funds' portfolio holdings, and Market Forces' regular reports on how the finance industry contributes to climate change.
Responsible Investment Association Australasia CEO, Estelle Parker
'We are all in a position to make a small difference through our super or other investment portfolios,' Parker says. 'People are cottoning onto that, and the growing demand is being met by really good quality financial investment options that people can take advantage of.
One of the funds featured on the Responsible Returns website is Australian Ethical. Alison George, Australian Ethical's chief impact and ethics officer, spends a good part of her working week making sure that where Australian Ethical invests its customers' money – which adds up to more than $13bn in managed funds and super – reflects the organisation's values and those of its customers.
'Australians have a choice of which super fund they have and can move that money at any time,' George says. 'You are making a choice, whether you're making an active one or not.'
Doing nothing, George says, is an action in itself.
'At Australian Ethical we have a theory of change for the future that guides the way we approach business and approach investment. We believe that if consumers vote with their choices and move to the funds that care about people, planet and animals, this kind of investing can grow.
'One day it could just be normal for investments to consider the impact on the environment and society as well as the impact on the bottom line, and money can become a force for good.'
Australian Ethical chief impact and ethics officer, Alison George
For many people, super is one of the largest investments we will make in our lifetimes – and together we can use it to make significant impact.
'The choices that we make as individuals do matter,' George says. 'Like climate change: we know it's an urgent threat. We know that as individuals, it's hard for us to tackle and engage with. But your money aggregated with others, invested for positive climate solutions for the future, is a great way that you can be doing your part to shift the dial on that issue.'
Will van de Pol is the CEO at Market Forces, which holds Australian financial institutions to account on climate. He says values-driven decisions are one of the most powerful ways we can make our money matter.
'When it comes to taking on some of the world's biggest challenges – like climate change – ensuring that your power as the customer is used in a way that drives solutions to problems is incredibly important and powerful,' he says.
'The point is to make decisions about what you value most highly and see as ethical, and follow that through with your decision-making.'
Market Forces CEO, Will van de Pol
Australians who care about sustainability might choose to buy locally grown produce or an electric vehicle. If fair working conditions are important, they might research a product's supply chain or find alternatives to fast fashion.
George says: 'We're all busy people – but the idea here is to start acting on what you know and think about making better choices, rather than doing nothing while you wait for perfect information.
'When you have time, put that effort into things that are more impactful and bigger choices for you. The car you drive, your bank, your super fund – they're all good examples of decisions that can have really broad-ranging and long-term impacts.
Australian Ethical is seeing more people making values-based choices about their super, George says. 'People are recognising the importance of their superannuation money as something that they want to make sure is invested well, for themselves, for the planet and for society as well.'
With $4.2tn held in super – more money than Australia's GDP – the potential for supporting change is profound. Imagine if all of that money was invested in companies trying to change the world for the better. A super fund that aligns with our values is one way we can become part of a force for good.
Learn more about how Australian Ethical can invest your money to help build the future you want for yourself, your family and the world.
This information is general in nature and is not intended to provide you with financial advice or take into account your personal objectives, financial situation or needs. Before acting on the information, consider its appropriateness to your circumstances and read the PDS and TMD at australianethical.com.au. Issued by Australian Ethical Investment Ltd (ABN 47 003 188 930, AFSL 229949).