Will Australia follow the European sustainable investment boom? By George Whiting 03 August 2021
In the first quarter of 2021, €120 billion flowed into sustainable funds in Europe. By comparison, Australia’s entire sustainable investment universe accounts for only $25 billion in asset under management, over half of which is in passive products.
There has been a mounting case for the growth in the Australian sustainable investment industry, but it pales in comparison to the movement underway in Europe. So, the question is whether Australia will follow suit.
In understanding to what extent this will happen in Australia, we first need to understand the forces at play – and sustainability starts with policy. Europe is legally bound to have net-zero emissions by 2050 and will reduce net emissions by 55 per cent from 1990 levels by 2030. This creates a natural road map for investment, whether it be technology
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