Most Australians expect their money to do good in the world — 84% want their super invested ethically, according to the Mindful Investing report. Yet up to $450 billion in super savings is still sitting in companies Australians say they’d rather avoid. That’s a gap between what people want and where their money actually goes. For someone with a $100,000 super balance, that could mean thousands of dollars quietly funding industries they oppose.
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This article is general information only and does not constitute professional advice. For your specific situation, consult a qualified professional.
That confidence gap — 83% expect it, but only 36% feel confident doing it — is the real story. Most people want to align their savings with their values but don’t know where to start. The good news is that ethical saving doesn’t mean lower returns, and it doesn’t mean overhauling your entire financial life overnight. It starts with understanding what’s actually happening with your money and making a few targeted switches.
Here’s what you actually need to know.
What ethical saving actually means for your money
Before diving into the numbers, it helps to pin down what we’re actually talking about. Sustainable finance means using your savings and investments to support economic activity that doesn’t compromise future generations — balancing profit with people and the planet. Ethical finance goes a step further, aligning your money with your personal moral principles.
What I tend to notice is that people assume their super fund handles this automatically. The data suggests otherwise. Checking where your money actually sits is the first practical step, and it’s one most Australians haven’t taken.
What your super is really funding — and what it costs you
The Mindful Investing report found that $89 billion across just 15 super funds is parked in industries Australians say they’d avoid — fossil fuels, weapons, tobacco, companies linked to animal cruelty and human rights violations. When you scale that across the entire sector, it reaches $450 billion. That’s money belonging to people who, in most cases, have no idea where it’s going.
Eight in ten Australians want their super to steer clear of companies involved in environmental damage, social harm, and weapons manufacturing. Yet many large funds still hold those positions, even within their MySuper and sustainable investment options.
So what does this mean in practice? If you’re in a default MySuper product, your money is likely exposed to sectors you might not support. Switching to a fund that uses negative screening — excluding certain industries — or thematic investing — targeting positive environmental and social outcomes — changes that exposure. The key is that sustainable funds have performed comparably to traditional investments, so the trade-off isn’t lower returns. It’s about knowing what you own.
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| What Australians want to avoid | % who want exclusion | Still held by many large funds |
|---|---|---|
| Weapons manufacturing | ~80% | Yes |
| Environmental damage | ~80% | Yes |
| Animal cruelty | ~80% | Yes |
| Human rights violations | ~80% | Yes |
| Tobacco and gambling | ~75% | Yes |
Beyond super, the same principle applies to everyday banking and savings accounts. The Responsible Investment Association Australasia found that 83% of Australians expect their savings to be used responsibly. Yet only 36% feel confident they know how to check. That’s a knowledge gap, not a willingness gap.
Where ethical savers get tripped up
Assuming your super fund is already ethical
This is the most expensive assumption you can make. Many large funds offer a “sustainable” or “ethical” option, but the Mindful Investing report found that even these labelled options can still hold positions in controversial industries. The fix: log into your super portal, find the investment holdings disclosure, and look at what companies your money is actually in. If the list isn’t clear, call the fund and ask for a breakdown by sector. If they can’t give you one, that’s a red flag.
Falling for greenwashing
Greenwashing happens when a provider overstates its ethical credentials. A fund might call itself “green” while still holding fossil fuel stocks. The way to spot it is through independent verification. Look for third-party certifications like the Responsible Investment Association Australasia (RIAA) certification, and check whether the fund publishes a full list of holdings. If the marketing is heavy on imagery but light on data, treat it with scepticism. You can also use the Mindful Investing digital tool to compare what different funds actually hold.
Ignoring everyday banking and energy
Ethical saving isn’t just about super. Your everyday transaction account, savings account, and energy provider all have ethical dimensions. The Energy Made Easy website lets you compare energy plans by source — some retailers offer 100% renewable electricity. On the banking side, look for providers with transparent fee structures and clear sustainability commitments. A bank that invests in fossil fuel projects isn’t aligned with an ethical savings goal, no matter how good the interest rate looks.
Thinking you need to be an expert to start
The confidence gap — only 36% of Australians feel confident about ethical investing — stops people from taking the first step. You don’t need to become an ESG analyst. Start with one switch: your super fund. That single move has the biggest impact because super is likely your largest long-term investment. Once that’s sorted, look at your bank account and energy plan. Each step builds on the last.
How to align your savings with your values — step by step
Start with your super
Super is the biggest lever you have. The first step is finding out what your current fund actually invests in. Log into your member portal and look for the investment option disclosure or portfolio holdings statement. If you’re in a MySuper default, you’re almost certainly exposed to industries you might want to avoid. Switching to a fund that uses negative screening or thematic investing changes that. When comparing funds, look at three things: the investment strategy (does it exclude fossil fuels, weapons, tobacco?), the fee structure (are they transparent?), and the performance history (has it matched the market?). You can consolidate multiple super accounts into one ethical fund to simplify things and avoid paying multiple sets of fees.
Choose a bank that matches your values
Your everyday transaction account and savings account matter too. Look for banks that publish their lending policies and disclose which industries they finance. Some Australian banks have clear policies against funding fossil fuel projects or weapons manufacturing. Others don’t. The key is transparency — if a bank won’t tell you where your deposited money goes, that’s a problem. Compare fee structures and interest rates alongside ethical commitments. A slightly lower rate isn’t worth it if your money is funding something you oppose.
Time your energy switch for maximum impact
Energy is one area where ethical choices can also save you money. The Energy Made Easy website lets you compare plans by renewable energy content. The best time to switch is March–April and September–October, when retailers compete most aggressively for customers. An annual plan review can capture seasonal pricing opportunities. For renters who can’t install solar panels, community solar projects offer a way to access renewable energy — two sisters in Queensland cut their electricity costs by 35% through a community solar project.
Check for greenwashing before you commit
Before moving your money to any provider that claims to be ethical, verify the claim. Look for independent certifications like RIAA certification. Check whether the provider publishes a full list of holdings or investments. Read the fine print on what “sustainable” actually means to that specific fund or bank. Some funds define “sustainable” as simply excluding tobacco, while still holding major fossil fuel companies. If the language is vague, ask direct questions: “Do you invest in companies involved in thermal coal? Weapons manufacturing? Gambling?” If you can’t get a straight answer, move on.
What’s coming next in ethical finance
The regulatory landscape is shifting. The Australian government is moving toward mandatory climate-related financial disclosures for large companies and super funds, which will make it easier to compare ethical credentials. The RIAA research shows that consumer demand is driving change — 83% of Australians expect responsible use of their savings, and that pressure is pushing more providers to offer genuinely ethical options. Over the next few years, expect clearer labelling standards and more transparency requirements. That makes now a good time to get ahead of the curve and align your money before the rules force everyone to catch up.
Frequently asked questions
Will I earn less if I switch to an ethical super fund? ▾
How do I know if my super fund is actually ethical? ▾
Can I switch super funds if I’m in a default MySuper product? ▾
What’s the difference between ethical and sustainable investing? ▾
Does ethical banking mean lower interest rates? ▾
What if I’m a renter and can’t install solar panels? ▾
Your money, your values — the choice is yours
The gap between what Australians want from their money and where it actually goes is $450 billion wide. But closing that gap doesn’t require a finance degree or a complete lifestyle overhaul. It starts with one check — your super fund — and one switch if needed. From there, your bank account and energy plan are natural next steps. The research is clear: you don’t have to choose between doing good and growing your savings. The two can work together.
Remember: this article is general information only. For advice on your specific situation, speak to a qualified professional.
If this was useful, you might also want to read Ditch the Latte, Build a Legacy: Aussie Saving Secrets Revealed.
Sources and Further Reading
Maximize Your Savings with Supermarket Clearance Sales — Practical strategies for cutting grocery costs, which frees up money to put toward ethical savings goals.
Invest Your Spare Change: Aussie Micro-Investing Options Explored — How small regular investments can build an ethical portfolio over time.
Australian Ethical (2026). Mindful Investing report. 🔗
Responsible Investment Association Australasia (2026). Australian Consumer Research. 🔗
Australian Energy Regulator. Energy Made Easy. 🔗
Minimalist Journeys. Save and Invest Ethically and Sustainably. 🔗
