Perennial has been recognised as a Responsible Investment Leader by the Responsible Investment Association Australasia (RIAA) for the third consecutive year in the Responsible Investment Benchmark Report Australia 2022 launched today. This highlights our continued commitment to responsible investing across Perennial Better Future, Perennial Smaller Companies, Perennial Value, Perennial Solutions Group and Perennial Private Investments.
According to RIAA, Responsible Investment Leaders “demonstrate strong governance by publishing responsible investment policies and processes and inviting stakeholders to hold them to account for their performance against targets which they set and report against”.
Responsible Investment (RI) Market Trends
The report revealed that Australia’s RI market reached $1.54 trillion in 2021, up from $1.28 trillion in 2020. RI AUM now represents 43% of total managed fund investments, up from 40% in 2020.
Source: RIAA Responsible Investment Benchmark Report Australia 2022
Key drivers of RI market growth flagged by RIAA Benchmark Survey respondents include a “growing interest by underlying investors to align investments with mission/values” and “heightened demand from institutional investors”. Notably, “expectation of the improved long-term performance or risk mitigation” grew 18% from 2020 to become the third most popular driver in 2021. RIAA notes that this significant increase “may reflect continued global coverage of the climate crisis and calls for ESG integration into risk management, as events including bushfires, floods and drought increase, not only in frequency but severity and impact on communities”.
Source: RIAA Responsible Investment Benchmark Australia 2022
As the Australian RI market continues to experience significant growth, spurred by several key drivers as highlighted in the RIAA RI Benchmark Report, Perennial looks forward to continuing its leading approach to ESG.