We wanted to share an update with you from Australian Ethical, who are one of the managers within the AAN Sustainable Growth Model. What follows has been published without edit or modification from this post. This update includes links to several articles that have been written for investors.

We need systemic change across multiple industries to tackle the most difficult and important challenges of our time, such as climate change, the biodiversity crisis, human rights abuse, and industrialised animal cruelty.

Ethical Stewardship is one way we can directly have real world influence – leveraging the capital our members and investors have entrusted to us to influence investee companies, the economy and society. It is focused on reducing the negative and increasing the positive impacts of companies and achieving systemic change at an economy or society-wide scale. Our approach to engagement stems from our belief that as a long-term investor we have a unique and critical role. We are here to make money and a difference. 

In FY22 our Ethics Research team engaged with over 450 companies to understand and influence their positive and negative impact, support shareholder resolutions and to vote for the changes we want to see.1 Read on to learn more about our engagement activities in the areas where we see the most need for change and opportunity to make a difference.

Turning off finance for fossil fuels

We do not invest in fossil fuel companies.2 But we leverage our investment in the finance sector to campaign against the unsustainable expansion of fossil fuels and encourage the financing of renewables.

READ MORE

Animal research

We expect companies involved in animal research to avoid and reduce animal suffering. We also believe that companies commissioning animal research can drive greater use of alternatives and better animal welfare practices.

READ MORE

Animal agriculture & deforestation

We do not invest in conventional animal agriculture because of its large environmental footprint and because of animals’ suffering. But we leverage our connections in adjacent industries to influence change.

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Carbon sequestration & protecting wildlife

Australia is well placed to provide credible and secure carbon sequestration services the world needs. With appropriate policies and markets, we think our farmers and the communities they support could be direct beneficiaries.

READ MORE

As always, if you have any questions about your these blogs or your portfolio, please don’t hesitate to reach out to your adviser.

Regards

AAN Investment Committee

Blog sources: australianethical.com.au/why-ae/ethical-stewardship/
(1) This total includes lending our voice to support others’ initiatives, engaging with companies directly (on our own or with others) and filing and voting on shareholder resolutions. Represents FY22 activity only.
(2) Our investment exclusions include some exceptions and tolerances. While we don’t invest in companies whose main business is fossil fuels we may, as an example, invest in a diversified company which earns some fossil fuel revenue but is having a positive impact in other ways such as producing renewable energy, providing its fossil fuel revenue is assessed by us as low (a maximum of between 5% and 33% depending on the activity), relative to its overall revenue. For more information on our ethical criteria including examples of revenue tolerances, visit australianethical.com.au/why-ae/ethics/ethical-criteria/

This article has been prepared for general information purposes only and not as specific advice to any particular person. Any advice contained in this material is General Advice and does not take into account any person’s individual investment objectives, financial situation or needs. Before acting on any of the information included in this article you should consider whether it is appropriate to your particular circumstances, alternatively seek professional advice. Any references to past investment performance are not an indication of future investment returns. If you are a retail client this article will not be suitable for you, please discuss with your financial adviser. Prepared by AANAM ABN 37 609 544 836; Authorised Representative number 1238848 of AAN, ABN 13 602 917 297 AFSL 472901.