2022: The Year of Living Sustainably

New research from the Commonwealth Bank shows the majority (55%) of Australians believe it’s important to use renewable energy for household power. Yet  only 8% of us have changed to a green energy provider.

Part of the problem is that we’re not particularly engaged with our energy provider. Almost three quarters of Australians don’t know how much they pay for electricity; 15% can’t name who their energy provider is; and only around one in ten of us are confident our household power comes from renewable sources.

Finding an electricity plan based on green energy can involve some shopping around. The 2022 Green Electricity Guide published by Greenpeace is due to launch early this year, and it’s worth keeping an eye out for as it ranks electricity providers by their use of clean energy.

In the meantime, Powershop and Energy Locals were nominated for a number of eco-energy awards by Finder in 2021. That said, oil and gas giant – Shell, recently announced it is buying Powershop, which may go against your eco-views.

The effort of switching to renewable energy can be financially rewarding. Finder says the average household pays $346 in quarterly power bills, while those using green energy pay $298 per quarter on average.

Eco-friendly home improvements can trim household power bills, and a variety of lenders offer ‘green’ loans with low interest rates. As a guide, Community First Credit Union’s green loan comes with a rate of 3.99% and is available for sustainable projects such as adding solar panels to a home.

As investors, we can also make sustainable choices. The Responsible Investment Association Australasia (RIAA) found 86% of Australians want their super and other investments to be invested responsibly. To help here, the RIAA launched the Responsible Returns website. It features an online search tool to identify those super funds – and investment options within funds, that match your views around sustainability, anything from avoiding logging or fossil fuels to supporting renewable energy.

For everyday investing, there is a generous choice of exchange traded funds (ETFs) that focus on sustainable investments both within Australia and globally. As a guide, the Vanguard Ethically Conscious Australian Shares ETF excludes companies with significant business activities involving fossil fuels and nuclear power among other things.

Matching your investments with your views, doesn’t just forge a stronger connection between you and your money. It also adds to the momentum for political leaders, company bosses and fund managers to find greener solutions that support a healthy planet. And that’s got to be good for all of us.

InvestSMART has recently launched the InvestSMART Ethical Growth Portfolio, available via an InvestSMART Professionally Managed Account. Click here for further information.

Paul Clitheroe is Chairman of InvestSMART, Chair of the Ecstra Foundation and chief commentator for Money Magazine.