A
recent report by the Responsible Investment Association
Australasia (RIAA) found that nearly half of Australia's
professionally managed assets (comprising some $980 billion) apply
a responsible investment approach.
This pool of responsible investment may be set to rapidly
expand, according to Larry Fink, CEO of the world's largest
asset manager BlackRock, who recently published an
Open Letter to CEOs forecasting a 'fundamental reshaping of
finance'.
Below, we provide a refresher on some of the main approaches to
responsible investment increasingly adopted by institutional
investors.
What is responsible investment?
Responsible investment is a label for an approach adopted by
institutional investors – such as superannuation funds,
insurance companies, pension funds, sovereign wealth funds and
privately managed investment funds (including by some of
Australia's largest institutional investors) – that
incorporates environmental, social, and other
