Building ethical super from the ground up, this fund's been living your values for decades.
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In a world where 'ethical' seems to be the latest marketing buzzword, it’s easy to feel sceptical about whether your super fund really walks the walk, or is simply ‘greenwashing’ you.
There are also labels like the Environment, Social and Governance framework (ESG), Certified B Corporation, impact investing and more - which all convey some level of legitimacy to the term ‘ethical investing’ - but can mean different things in practice.
But what if there were one fund that embodied a wide range of these principles, has done so for decades and boasts the performance to back it up?
That fund is Australian Ethical Investments, which could be considered the first dedicated ethical super fund in Australia.
Sure, the modern form of ‘ethical investing’ had already been emerging in the world of managed funds around the mid-1980’s, but when Australian Ethical was founded in 1986, they made sure to add ethical super options to the mix.Let’s see what sets them apart:
- Long-standing ethical charter. Has had a comprehensive ethical charter in place since the very beginning - shaping all investment decisions and going further than standard ESG frameworks.
- Rigorous ethical screening. Uses strict exclusions (eg, fossil fuels) and positive screening to select ethical investments.
- Certified B corporation. Australia's first listed B Corp, a rigorous qualification that demonstrates the fund’s ethical bonafides.
- Genuine impact investing. Focuses on investments that actively solve social and environmental problems, not just avoid causing them.
- Transparency and stewardship. Committed to transparent reporting and actively engaging with companies it invests in.
Investing your super based on your values
It’s true that Australian Ethical goes all out, but it’s not the only way to invest according to your values.
If you prefer a less demanding ethical commitment, other funds approach things differently and can offer a lighter touch.
For example a fund that follows an Environmental, Social and Governance framework (ESG) might not be making investment decisions based solely on strict and specific ethical principles - but they will take a closer look than other funds at how investing in problematic industries (and business practices) could potentially impact returns down the line.
Aware Super is a fund that operates according to this lighter ESG-focused touch across their portfolio, while also offering 4 specific investment options that are more actively ethical.
So with that in mind, if you are looking to switch or sign up to a new superfund, here's a closer look at these two value-led funds for your consideration.
Australian Ethical Super
- Over 30 years of experience in ethical investing, focusing on sectors like renewable energy, healthcare and education.
- The Australian Shares Super option delivered 9.3% p.a. over 10 years and 8.7% over 5 years as at 31 December 2024.
- Offers a range of superannuation options that are all ethically screened.
- Recognised for meeting high standards of social and environmental performance, accountability, and transparency.
Aware Super
- Aware Super manages over $170 billion in retirement savings for over 1.1 million Australians
- Track record of delivering super long-term returns - 9.06% p.a. over 5 years and 8.41% p.a. over 10 years to 28 Feb 2025 in the High Growth option, where a majority of members are invested.
- Winner of the 2025 Mozo Experts Choice Awards for Exceptional Super Fund for Gen X.
- Investment flexibility: Choose from a range of diversified options or single asset class options, or MySuper Lifecycle which automatically tailors your investment mix to your age over time.
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