2018

KEY FINDINGS

1. As at 31 December 2017, responsible investment constituted $866 billion AUM, up 39% from $622 billion in 2016. This represents around 55.5% of total assets professionally managed in Australia (TAUM) valued at $1.56 trillion. $679.3 billion AUM are managed through a Broad responsible investment strategy – that is undertaking a leading approach to ESG integration – while $186.7 billion AUM constitute Core responsible investments – that is screening, sustainability themed or impact investments1.

2. There has been 22% growth in the RI AUM subject to Broad responsible investment strategies over the last year. There has been a 188% increase of AUM subject to Core responsible investment strategies.

3. Funds implementing Core responsible investment strategies outperform their equivalent Australian and international share funds and multi-sector growth funds, over most time horizons.

4. The positive impact of ESG integration on portfolio performance and the increasing demand from institutional investors, are identified as the key drivers of growth in RI AUM.

5. For the second year in a row, there has been a significant increase in the use and number of negative screens applied. The most common screens are weapons, tobacco and gambling, with a significant growth in screens over climate, human rights and adult content in the year.