Super to become environmentally friendly

SUPER choice will soon become a bit more green, with the launch of a system that will measure funds' environmental credentials.

Super to become environmentally friendly

SUPER choice will soon become a bit more environmentally friendly, with the launch of an assessment system that will measure funds' environmental, ethical and sustainable credentials.

SuperRatings' managing director Jeff Bresnahan said Australian super funds had a leadership role to play in the whole climate change debate.

"It is quite clear that due to the combination of the industry's potential influence over major institutions and their access to all working Australians, the superannuation industry can provide leadership in the way our planet is treated," Mr Bresnahan said.

He said SuperRatings wanted to help consumers by acknowledging those funds that were genuinely embracing change and sought out investments that were more socially responsible, ethical and green.

Last week, the Ethical Retail Superannuation Trust won SuperRatings' inaugural Infinity Award for its ethical and sustainable policies.

The fund went through a deep-green process where it screened out companies that did not come up to its standards, Mr Bresnahan said.

He said it also had moved into purpose-built offices in Canberra with a star rating of six in terms of its environmental innovations.

The integrity recognition assessments will be made available next month, Mr Bresnahan said.

So far SuperRatings has collected data from about 80 per cent of funds Australia-wide.

He said the aim was to allow consumers to cut through the marketing rhetoric and identify funds that met their personal beliefs on the environment and society as a whole.

He said some funds claimed to be green, some claimed to be socially responsible, some claimed to be ethical, and others all three when making their investment decisions and in their day to day operations.

"Unfortunately to date, the communication flow to consumers has been complex and confusing regarding the multitude of issues involved," he said.

The assessment would examine all the major issues, including how investments measured up on sustainability, ethics, environmental awareness, responsiblities and the treatment of work forces, both their own and those of their suppliers.

"Entities may be addressing one issue but ignoring many others," he said.

"Our review is to determine those that are genuinely addressing all issues."

Mr Bresnahan said those funds that chose to address all these issues found there was a minimal effect on their investment process, which over the long term amounted to very little difference with funds that chose not to.