Back in 2015, conservative estimates in a WWF report valued key ocean assets at US$24 trillion, which if compared with the world’s top 10 economies would rank the ocean as the seventh largest. And yet for an asset that covers 70 per cent of the earth’s surface, produces half the world’s oxygen and regulates climate, our oceans remain curiously underfunded.
Why has ‘blue finance’ not enjoyed the same momentum as green finance?
One problem for investors is the vastness of the oceans, and of the issues involved, which range from rising sea levels to the livelihoods of coastal communities to the health of coral reefs. Meanwhile some of the most pressing issues – such as tackling pollution and plastic waste – originate onshore and must be tackled at least partly on land.
What are the options for everyday Australians looking to do more to safeguard the ocean?Northern Beaches resident Maria Loyez is Chief Customer Officer at Australian Ethical, an ethical investment manager that has been protecting the planet while delivering financial returns for customers for more than 30 years. She says many of us are ignoring our most powerful lever for change.
“While many people understand that human activities such as burning fossil fuels and overfishing are degrading the ocean, not enough people realise that often they’re supporting these activities through their superannuation and other investments, which are in turn invested in many companies that are causing these problems.
“That’s why we’ve launched a movement at openyoureyes.com.au to help people understand the power of their money, where it’s going and how it could be making a positive difference if they invested sustainably” she says.
Maria says: “Through our investments, like our superfund, we can help the transition to a sustainable blue economy by choosing an ethical fund.
“At Australian Ethical we invest in companies that are reducing carbon emissions and pollution and enhancing energy efficiency. For example, Australian Ethical has a five times greater proportion of our share investments in renewable power generation, compared to the global share market.
These investments are also generating market-leading returns for our customers, for example, our Australian Shares super option ranked no.1 over 1 year, 5 years, 7 years and 10 years according to the independent SuperRatings Fund Crediting Rate Survey with a remarkable 55.17% pa return over the year ending 31 March 2021.
So, while past performance is not a guarantee of future performance, our customers can save for their future and help to save our planet’s future.”
To fast track the evolution of the blue economy, Australian Ethical also donates 10 per cent of its pre-tax profits to its philanthropic foundation through which it funds research initiatives, like the Blue Carbon Lab at Deakin University, and innovative projects like the Seabin Project, funding two seabins in Sydney Harbour to remove marine debris and surface pollutants.
Maria says there are options for all of us to use our money to help turn the ripples in blue finance into a tidal wave of support.
She says: “That’s why it’s so important that we all invest with our eyes open, so we can protect what we love and create the future we want to see.”
And with Australian Ethical offering award-winning super and managed funds, maybe it’s worth having a further look.
If you’re interested to find out more about investing your super or savings with Australian Ethical go to www.australianethical.com.au for more information.