Australian Fund Monitors launches ESG comparison tool

Australian Fund Monitors (AFM) has brought a new environmental, social and governance (ESG) comparison tool to market, in an effort to combat investor confusion and greenwashing.

Available on AFM’s fund comparison site, ESGCheck allows users to search, view and compare the information of funds as it relates to ESG, with the ability to sort by category of sector exclusions or inclusions, individual manager or fund.

The tool shows users what is either excluded from the fund, such as tobacco or weapons, or included, such as renewable energy or green property. Users can leverage this information to select funds that align with their investment goals.

ESGCheck also shows users if the exclusions are only ‘full’ or ‘partial’ for each fund.

“ESG is a minefield of obscurity. There are over 120 funds in Australia that claim to offer responsible investing, but until now, investigating and clarifying those claims has been time-consuming and difficult. ESGCheck is designed to change all that,” Chris Gosselin, CEO of Australian Fund Monitors (AFM), said.

“Often it is left to the fund manager, or the investor, to decide what ESG actually means,’ Mr Gosselin says. ‘At best, this can cause confusion. At worst, where a manager’s claims can’t be substantiated, it could potentially indicate greenwashing.

“We know that many investors want their investments in managed funds to align with their values, but sifting through each fund’s offer documents and ESG credentials is laborious at the best of times. We believe that responsible investing should be accessible and transparent. ESGCheck bridges the gap between intention and impact, helping inform investment choices.”

The full version of ESGCheck, which also shows each fund’s alignment with the United Nation’s 17 Sustainable Development Goals (SDGs), is available via subscription to advisers, investors and other industry professionals.