Betashares holds a leadership position in ethical and responsible funds in Australasia. Our ethical products employ stringent screening criteria to ensure our funds align with the values of our investors.
We are committed to making a positive impact and influencing change at a corporate level, with a track record of engaging with companies held in underlying portfolios and proxy voting.
Investment principles
We recognise the important role that investment managers can play in promoting responsible investment practices. We are cognisant that large investors have a responsibility beyond managing the financial value of their own investment, and have an obligation to try to positively influence the way business is conducted, for the greater good.
We believe that by investing in our ethical products, investors entrust us with the job of managing their capital in a way that aligns with their values. This means that our funds invest in companies (or exclude companies) in accordance with clear ethically focused rules and guidelines.
We can also make an impact by ensuring our underlying portfolios participate in proxy voting and engaging with companies, for the long-term benefit of our investors.
Signatory to Principles for Responsible Investment (PRI)
Our Australian business is proud to be a signatory to the Principles for Responsible Investment (PRI), the world’s leading independent proponent of responsible investing. The PRI is supported by the United Nations and works to support the incorporation of ESG factors into investment decisions.
With an international network of signatories, the PRI encourages the use of responsible investment to enhance returns and better manage risks, leading to sustainable markets that contribute to a prosperous world overall.
Betashares Australia became a signatory in April 2021.
Member of RIAA
Our Australian business is a member of the Responsible Investment Association Australasia (RIAA) and in 2022 was recognised as a Responsible Investment Leader.
With over 350 members including superannuation funds, fund managers, financial advisers and individuals, the RIAA is the largest and most active network of people and organisations engaged in responsible, ethical and impact investing across Australia and New Zealand.
Betashares is committed to the RIAA’s goal of ensuring capital is aligned to achieving a healthy society, environment and economy.
Trusted by investors
Our commitment to providing true-to-label ethical investment options has been recognised by investors, with Betashares leading the ESG ETF industry in Australia.
As at the start of November 2023, the two ethical ASX-listed ETFs, through which the Betashares ethical NZ funds gain their exposure, together have over $3.9 billion in assets under management (AUM)
Funds
Betashares’ ethical NZ funds provide New Zealand investors with cost-effective access to a diversified portfolio of sustainable, socially responsible companies that meet strict responsible investment standards.’
Responsible Investment Committee
Our Australian business, Betashares Capital Limited, maintains a Responsible Investment Committee (RIC) for the two ethical ETFs through which the Betashares ethical NZ funds gain their exposure.
The purpose of the RIC is to:
- provide Betashares with general input and advice in relation to responsible investment policies and investments
- provide expert assessment of whether the companies in the portfolio satisfy the negative and positive screens incorporated into the indices that these ETFs aim to track
- provide oversite of proxy voting and engagement activities for these ethical ETFs.
The policy of each fund is to vote on all resolutions in a way that is consistent with the values embodied in the index rules for the fund.
Engagement activities
Engagement refers to how we seek information from companies about their business practices, and how we communicate our views and expectations.
If an issue arises in relation to a portfolio holding where the RIC believes there is a potential conflict with the fund’s values, or where the RIC believes a company could improve its ESG performance, delegates from the RIC will engage with the company to try to understand the situation in more detail and, if necessary, advocate for improvement.
If an investee fails to engage, or fails to commit to improvement, the RIC will consider additional actions, with the final point of escalation being potential removal of the holding from the relevant fund. The approach depends on factors including the company’s track record, how proactive it is in response to the issue, and how willing it is to engage with us.
Raising bar on transparency
We understand that one of the biggest concerns for investors in ESG funds is the issue of ‘greenwashing’ – the misrepresentation of the extent to which a fund is environmentally friendly, sustainable or ethical. Betashares’ focus is to ensure that our funds are transparent and rules-based in terms of security selection and the application of ESG factors.
On the relevant fund page, you can find the screening process and exposure limit guidelines the fund applies.
For the two ethical ETFs through which the Betashares ethical NZ funds gain their exposure, we disclose impact metrics and alignment to the UN Sustainable Development Goals compared to the relevant benchmarks as part of our reporting.
On annual rebalance of our ethical equity funds, we publish a detailed summary of the results of the rebalance, including the reasons for exclusions and inclusions directly linked to the index screening methodologies.
Industry certifications
1. The two ethical ETFs through which the Betashares ethical NZ funds gain their exposure have been certified by the Responsible Investment Association Australasia (RIAA) according to the strict operational and disclosure practices required under the Responsible Investment Certification Program. See www.responsiblereturns.com.au for details.1
RIAA’s Certification Symbol is recognised by investors and consumers across the region, providing investors with confidence that a product is delivering on its responsible investment promise and meeting the Australian and New Zealand standard for responsible investing.
1 The Responsible Investment Certification Program does not constitute financial product advice. Neither the Certification Symbol nor RIAA recommends to any person that any financial product is a suitable investment or that returns are guaranteed. Appropriate professional advice should be sought prior to making an investment decision. RIAA does not hold an Australian Financial Services Licence.
