The Responsible Investment Association Australasia’s (RIAA) annual Benchmark Report shows responsible investment growing in 2018 to a record $188 billion, a threefold increase over five years, and reaching 72 percent of all professionally managed assets.
New legislation, a rapidly warming climate, shifting consumer expectations, a hyper-transparent world and the importance of maintaining a social licence, have all become triggers for shifting the operating context of companies and influencing share prices and markets. The investment community today is responding to these drivers to better manage a broader array of risks to ensure the delivery of the best possible investment outcomes for clients.
However, responsible investment can do so much more to deliver the capital required for NZ to meet its most pressing social and environmental challenges, consistent with national commitments to the Paris Agreement on climate change and the UN’s Sustainable Development Goals.
It has been estimated that for the world to achieve the globally agreed Paris objectives of keeping world temperature increases to well below 2 degrees celsius, a significant US$1.5 trillion needs to be invested annually.
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