While 92% of Australians expect superannuation to be invested responsibly and ethically, it is not mandatory for funds to provide detail to know whether the investments align with member values, according to Elevate Super.
The super fund said many funds did not have an independent sustainability framework and unless members proactively excluded certain investments from their portfolio their super could be used to make them a part owner in industries such as tobacco, weapons, and gambling.
The fund noted that 60% of Australians were disengaged form their super and were either poorly or only moderately informed.
Elevate Super’s co-founder chief executive, Kent Kwan, said: “The reality is, our combined super investment is impactful and it’s vital we’re comfortable our super is being used to support and make us part owners in industries which align with our core values, while delivering competitive returns.
“It is not currently mandatory for Australian super funds to provide enough detail to know whether the investment of your super aligns with your core values.
“If you’re dissatisfied with the information provided by your existing fund, consider other super funds which are transparent about where your money is going.”
Kwan said members should not have to give up competitive financial returns to do good.