Socially responsible investing continues to attract younger Australians
After introducing a “light green” socially responsible investing option in the Raiz Invest app, called the Emerald portfolio, more than 32,000 consumers have now chosen that option, attracting more than $132 million of invested funds.
According to Raiz, the growth in the Emerald portfolio illustrates the growing demand amongst its community to invest in companies that align to their social and ethical expectations.
Speaking at today’s inaugural MarketLit virtual conference for Millennial and Gen Z investors, George Lucas, Managing Director and Group CEO of Raiz Invest, says an environmental, social and governance (ESG) option that assists in matching investment with personal values is becoming an essential amongst some younger investors.
“The Raiz company is also seen by some as an impact investment opportunity. We are improving the financial literacy of customers here and in Southeast Asia many who have never saved or invested before,” says Lucas.
“We take this responsibility very seriously and the responsibility of where we fit into the socially responsible ecosystem around the world. It is a constant process for us. That is why we introduced the “light green” Emerald portfolio, which was in direct response to customer demand for exposure to ESG Australian and global companies.”
In addition to the Emerald portfolio, customers who select the Custom portfolio can choose their own target weightings in ESG ETFs and maybe able to construct more “darker green” ESG portfolios.
“ESG investing appears to be accelerating and extends beyond profit, it is also about what your money is doing and who it is working for,” adds Lucas.
“According to Morgan Stanley, 86 per cent of millennials are interested in sustainable investing and are twice as likely as the overall investor population to invest in companies targeting ESG goals.”
Raiz Invest also introduced a successful Offsetters program, which has nearly 5,000 Raiz user’s actively reducing their carbon footprint. As part of this program, customers see part of their monthly subscription support an Australian disaster relief fund.
“Our Offsetters program aligns with our Raiz customers and is a very competitive price point for such a program,” continues Lucas.
“Since our launch in 2016, we have now planted more than 6,500 trees in the Yarra Yarra Biodiversity Corridor in Western Australia which we hope will bring many valuable benefits to the environment and reduce carbon.”