“Ban the bag” has been the battle cry of environmentalists for some time, and research by Canstar Blue shows 71 per cent of shoppers support the banning of single-use plastic bags.
But our money behaviour doesn’t always reflect this.
According to Finder, two out of five Aussies don’t even consider energy ratings when they buy an appliance – price is still the main decider. Yet over time, an energy-efficient product can provide savings on power bills and do less harm.
Part of the reason we make choices this way lies in behavioural science. Our brains are hardwired to place greater value on what we have today (immediate cost savings) rather than what we may enjoy in the future (reduced power bills).
For investors, it can make good financial sense to consider environmental concerns when you’re putting together a portfolio. For one thing, companies with the potential to cause environmental damage can risk staggeringly high costs with flow-on effects that impact shareholders.
But what if you choose to invest via a managed fund? A number of funds specifically focus on responsible investing with an eco-aware focus. Even super funds are getting in on the act, with eight out of 10 of the nation’s largest super funds now committed to responsible investing.
If responsible investing really interests you, check the principles underpinning a managed fund to make sure they are in line with your own views. Bear in mind though that while green is good, so is black.
Always check the fees and charges that apply to a managed fund.