Sustainability comes into sharper focus

The number of Australians putting their money where their mouth is when it comes to matching their investments with their values is on the rise, with 17% now “investing responsibly”, according to a report from the Responsible Investment Association Australasia (RIAA).

That figure has grown by 28% since 2020, with Simon O’Connor, chief executive of the RIAA, noting that the majority of Australians are also eager to avoid “greenwashing” by having companies’ sustainability claims scrutinised.

“Australians are demanding more transparency from their providers, with 75% wanting to know which companies their super fund, bank or other investments are invested in,” says O’Connor.

“Independent verification of sustainability claims is becoming key to winning trust. Three-quarters of Australians say they would be more likely to invest in responsible investment products that have been independently certified by a third party.”

Kwala, an investing app launched in September, aims to capitalise on this growing interest. It provides an avenue for Australians to invest specifically in ASX and internationally listed companies with a responsible bent. Kwala says that each investment in its fund is assessed on factors such as financial performance, environmental and social contribution, tax rates paid on profits and corporate governance.

“The Kwala app will educate its users on wealth building, while also offering an avenue for users to confidently save and invest each week, each month, growing the value of their investments in the long term,” says co-founder Peter Bennetto.

Kwala uses a subscription model that charges users between $2 and $4 a month depending on their balance. There’s also a minimum investment of $10.