The Responsible Investment Association of Australasia (RIAA) this week launched a report examining funds' approach to responsible investing.

It found more action was being taken, with funds backing shareholder resolutions demanding company disclosure on climate risk and funds divesting from companies with poor governance or who were engage in unethical activities.

Chief executive Simon O'Connor said, across New Zealand and Australia, there had been a surge in new responsible investment products being developed and brought to market.

But he said, as with any consumer segment, when there was an increase in products available, there was a risk of "green-washing", in which providers made claims to capture market attention but did not have adequate processes in place to back it up.

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