It’s time to take a stand on war, climate and gender equality and really think about your impact when it comes to investing.
Yes, I’m talking about gender equality and climate change given the widespread flooding across the east coast of Australia, but I’m also talking about the war in the Ukraine and the humanitarian and political crisis unfolding.
So what can you do? It’s a legit question given we are so far away from the trouble zone yet so connected by every development as it’s broadcast onto our phones, workplaces and homes.
You can take action by questioning the companies you invest in, by seeking to understand your super fund assets and you can also take note of what large fund managers and institutional investors are actively doing and the products or companies they are investing in.
A global push is underway for institutional investors to dump holdings in Russian assets to help isolate the regime of President Vladimir Putin, who has been accused of breaching international law by invading neighbouring Ukraine last week.
Australian industry superannuation giant Aware Super divested a $50 million Russian investment portfolio, while the NSW government’s Generations Fund has committed to selling $75 million worth of Russian debt and equities.
According to the Australian Financial Review many of the country’s largest super funds are still heavily invested in Russian assets.
The AFR reported this week that AustralianSuper, the country’s largest super fund, “has invested at least $80 million of members’ money in three Russian oil and gas companies with close links to the Kremlin: Gazprom, Lukoil and Rosneft.”
It also revealed that Rest has “at least $27 million invested in these companies, along with a $1.5 million holding of Russia’s largest airline Aeroflot.”
So to take action consider adopting an ESG strategy like that used by large institutions, which basically means investing in companies or products that perform well based on the following criteria outlined by Forbes:
- Environment. What kind of impact does a company have on the environment? This can include a company’s carbon footprint, toxic chemicals involved in its manufacturing processes and sustainability efforts that make up its supply chain.
- Social. How does the company improve its social impact, both within the company and in the broader community? Social factors include everything from LGBTQ+ equality, racial diversity in both the executive suite and staff overall, and inclusion programs and hiring practices. It even looks at how a company advocates for social good in the wider world, beyond its limited sphere of business.
- Governance. How does the company’s board and management drive positive change? Governance includes everything from issues surrounding executive pay to diversity in leadership as well as how well that leadership responds to and interacts with shareholders.
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