Ethical investing is a high-trust relationship. When investors place their money in investment products that make ethical claims, it is with the expectation of an outcome that aligns with their values, and delivers an appropriate level of return.
The underlying activities and approaches taken by issuers to demonstrate the ethical nature of their products can be complex and varied. Our research shows investors do not necessarily investigate the claims being made by issuers or the underlying details, such as which assets are in which funds. Investors rely on issuers to do what they claim to be doing.
This document provides insights from our recent supervision of disclosure for funds that claim to have ethical features. The update summarises findings from our reviews of disclosure documents, advertising and reporting on sustainability progress, and whether investments held by funds align with their sector exclusion policies.
Download the Ethical investing disclosure insights PDF
