Making a difference
To give you an indication of the impact of some of the companies our Managed Funds, Super and Pension investors have exposure to through Australian Ethical, we calculated the estimated annual revenue earned by those companies that can be attributed to products, services and activities aligned with sustainability frameworks like The UN Sustainable Development Goals (SDGs).
At Australian Ethical we recognise the imperative for investors to pay attention to the United Nations Sustainable Development Goals (SDGs) if we want to mitigate the worst impacts of climate change and create a more equitable economy for people, planet and animals.
On this page you'll find links to all of our investment option pages that now have impact data for companies they invest in.
Sustainable Development Goals
The 17 global Sustainable Development Goal (SDGs) were set by the United Nations General Assembly in 2015 as a blueprint on how to achieve a better and more sustainable future for all by 2030.
We refer to the SDGs, for illustrative purposes only, in the Sustainable Impact Revenue graphs shown in your statement and on the individual investment option pages.
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No poverty
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Zero hunger
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Good health and well-being
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Quality education
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Gender equality
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Clean water and sanitation
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Affordable and clean energy
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Decent work and economic growth
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Industry, innovation and infrastructure
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Reduced inequalities
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Sustainable cities and communities
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Responsible consumption and production
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Climate action
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Life below water
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Life on land
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Peace, justice and strong institutions
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Partnership for the goals
AE Option shares are the listed shares that Australian Ethical super options are invested in and for which we have relevant ‘sustainable impact revenue data’ or climate data.
Benchmark shares is a basket of companies in a general share market benchmark which also have the relevant impact-related data. For the comparison we have selected indices which we consider to be an appropriate investment benchmark for the share investments of the super options (S&P ASX 300 Index for the Australian Shares Option; S&P ASX 200 Index for Australian and New Zealand share-holdings of other Options; the MSCI World ex Australia Index for international share-holdings). We have not selected companies in the Benchmark shares based on their ethical, sustainability or ESG factors. The industry mix and other characteristics of companies comprising the AE Options shares and the indices are different.
You can see examples of the companies and their sectors that are included in AE options shares on Portfolio Holdings Disclosure or Who we invest in
We have used data and analysis tools provided by global research firm MSCI ESG Research LLC when calculating the impact information about sustainable impact revenue, carbon intensity, fossil fuel reserves and investment in renewables and energy solutions. The information presented is only for investments in listed shares in those companies which have been analysed by MSCI ESG Research for their relevant impact.
More information can be found on MSCI carbon footprinting and sustainable impact methodology and metrics.
MSCI ESG Research is not responsible for the impact information or the way we have used their data and tools. MSCI ESG Research (1) retains copyright in all its data; (2) does not warrant or guarantee the originality, accuracy and/or completeness of their data; (3) makes no express or implied warranties of any kind, and disclaims all warranties of merchantability and fitness for a particular purpose; (4) has no liability for any errors or omissions in connection with their data or for our reporting and use of their data; and (5) without limiting any of the foregoing, has no liability for any direct, indirect, special, punitive, consequential or any other damages (including lost profits) even if notified of the possibility of such damages.
The impact revenue is calculated per $1M invested by the Options in listed shares for which we have 'sustainable impact revenue data' compared to Benchmark shares and based on shareholdings at 30 June of the applicable year.
We’ve considered the revenue earned by companies (per $1m invested) from sustainable impact solutions such as alternative energy (for example renewable wind and solar), and that’s what you can see in the sustainable impact revenue table.
We’ve also linked these impact solutions to relevant Sustainable Development Goals (SDGs). The Sustainable Impact Revenue table shows links between MSCI’s categories of sustainable impact solutions and selected SDGs. We have determined these links based on our own assessment of how MSCI’s criteria for their Sustainable Impact Solutions relates to SDGs.
There is more information at the following links:
Investment in renewables and energy solutions includes investment in renewable energy generation from wind, solar, geothermal, biomass, small scale hydro (25 MW or less) and wave tidal energy. Also included are biofuels, waste-to-energy, renewables equipment (e.g. solar inverters and wind turbines), transmission of renewable energy, and batteries and other energy storage supporting renewable energy.
If you had more than one investment option as at 30 June of the applicable year, we combined the relevant data for your annual member statement so you can see all of the impact data in the same graph. You can see the impact of companies in each investment option on their individual pages using the links on this page.
At the moment we only use impact data for listed shares (known as equities). As the Defensive option doesn’t invest in equities we do not report on its impact.