Author: Dr Kuntal Goswami (FIPA), The Principal Accountant & Sustainability Specialistat Accounting & Business Care. Founder & Researcher at Australian Centre forSustainable Development Research & Innovation, MBA Academic
Investment & Sustainable Business Outlook Article: 3 Issue:1 Volume: 1 2026ISSN: 2982-3226 (Print) ISSN: 2982-3234 (Online) www.accountingbusinesscare.com.au
Abstract: A sustainable finance system is an emerging financial system thatintegratessustainability issues into investment decision-making processes to promote anecologically sustainable and inclusive economy. Within this system, Sustainability-focused Exchange Traded Funds (ETFs) are new financial instruments that facilitatethemobilization of capital from retail and institutional investors for the transition towards asustainable economy
On the Australian Securities Exchange (ASX), 373 Exchange Traded Funds (ETFs) arelisted, of which 30 are sustainability-focused-(including green & climate-focused) ETFs.The investment analysis of sustainability-focused (including green & climate-focused)ETF portfolios show that, on average, these portfolios provide 2.56% annual distributions(dividends & interest earnings), with 1-year and 3-year total annual returns of 13.36% and6.92%, respectively, relative to an average beta (riskiness) of 0.94.
Investors must contextualize these responsible and ethical investment returns within thestrict norms of Responsible & Sustainable Investment (R&SI) Approaches, the disclosureexpectations of the Responsible Investment Certification, the principles of the UN GlobalCompact, and the sustainable finance system’s global commitment to advance andcontribute to the UN SDGs and the Paris Agreement. In addition, the sustainable financesystem faces challenges due to a lack of standardised policy support for the emerging sustainability market worldwide.
Hence, a sustainable finance system requires long-term investment support frominvestors andpolicy support from respective governments worldwide.
Key words: Sustainable Finance, ESG Risk, Australian Securities Exchange (ASX),Exchange Traded Funds (ETFs), Sustainable Investment strategy, Climate Change, NetZero, Green Bond, Portfolio diversification, Responsible & Sustainable Investment (R&SI) Approaches.
Citation: Goswami, K. (2026)‘Investment Analysis of Sustainability-focused Exchange Traded Funds (ETFs) listed on theAustralian Securities Exchange (ASX): A Sustainable Finance Perspective’Investment & Sustainable Business Outlook,Article:3, Issue:1, Volume: 1pp. 122-167, https://accountingbusinesscare.com.au/ investment-sustainable-business-outlook/ or https://accountingbusinesscare.com.au/investment-analysis-sustainability-focused-exchange-traded-funds
Acknowledgement to Mahfuja Binte Malek, MBA Student, UBSS, for assisting in dataanalysis
Introduction
Sustainable finance is an emerging discipline within the global financial services systemthat aligns traditional financial services with sustainability values (Riaa 2018; Edwards etal., 2019). One of the key functions is to mobilize and allocate capital for transitioning towards ecologically sustainable development (Edwards et al., 2019).
Sustainable finance expects decision makers to integrate all encompassingsustainability criteria (economic, environmental [climate change mitigation, climate change adaptation, & other environmental matters] social and governance issues) in allfinancial services related (including education & training, financing & investment,banking, accounting, trading and financial reporting) decision making processes to promote an ecologically sustainable and inclusive economy (Sommer 2020; Edwards etal., 2019)…READ MORE.
To promote sustainable employment,energy production,transportation, agriculture, fishery & land use, retirement,financing, technological innovation,mining,infrastructure &construction, and overall economic development
To promote sustainable employment,energy production,transportation, agriculture, fishery & land use, retirement,financing, technological innovation,mining,infrastructure &construction, and overall economic development
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