ethical investing

While some still associate them with lower returns, ESG analysis and sustainable investing are really about managing risk and harnessing opportunities, the Perennial Partners portfolio managers said. If done “authentically”, sustainable investing is “very much a returns game”.

The clean-energy transition represents a huge opportunity for investors to earn good returns from investments that have a positive environmental impact – and ethical investors in Australia have particularly good cause for optimism, according to Australian Ethical.

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.