The ethical investment house believes consumer credit can be positive for society if it is used to buy useful items. But companies like Afterpay focus on impulse purchases that are more likely to push vulnerable Australians into financial over commitment.
What investors often misunderstand is that despite having ‘environmental’ in its description, ESG integration screens often don’t exclude companies that damage the environment according to the 2022 Sustainability Report.
It now sits aside recycling, reducing energy consumption and using biodegradable products as one of the most common methods of making a positive impact according to research from Australian Ethical and Investment Trends.
Despite a backdrop of weaker returns and uncertainty, Australian Ethical has continued to grow via great engagement and ‘consumer love’.
Many are seeking to oversimplify ESG, which is an inherently complex part of investing, while others are overcomplicating what is really a simple consideration.
