The Petition – #5by25

We aim to petition the Australian parliament to legislate a change in MySuper mandating that superannuation funds allocate a minimum of 5% of total assets into Impact Investments in private markets by 2025. (1) This constitutes approx. $175 billion and will provide Australia with the opportunity to be a leader in driving positive social and environmental impact at home and abroad while ensuring our nation makes its contribution to The 2030 Agenda for Sustainable Development.

WHAT DO YOU WANT THE WORLD TO LOOK LIKE WHEN YOU RETIRE?

Australia's private superannuation system ranks 5th globally, managing approximately $3.5 trillion in assets. Only a tiny fraction of these assets are allocated to fund investments that focus on positive social and environmental outcomes as well as financial returns. Our government's obsession with super fund performance tests directly disincentivizes super funds investing into impactful investments. The benchmarks to which they are held to account, do not support sustainable investments. (2)

Let's start at home by reviewing the Impact Investing Taskforce Expert Panel (Update and Review of Final Report Dec 2022) which highlights:

In Australia, 'there are now 3.3 million people (13.4%) living below the poverty line of 50% of median income, including 761,000 children (16.6%). One in eight adults and one in six children are living in poverty. Australia’s social problems far exceed the resources available to government to address them, especially in the current challenging fiscal circumstances. This underlines the critical importance of attracting private capital to boost public investment, drive innovation and increase our economic, social and environmental resilience.' (3)

The scale of the social and environmental issues we face were best framed by The 2030 Agenda for Sustainable Development which was adopted by all United Nations Member States in 2015, including Australia, providing a blueprint for peace and prosperity for people and the planet, now and into the future. At its heart are the 17 Sustainable Development Goals (SDGs), which are an urgent call for action by all countries - developed and developing - in a global partnership. (4)

Unfortunately, their Special Edition Report 2023 (5) highlights that the scale of the problem that we face at home and abroad has not reduced. If anything, it’s become bigger and government efforts to direct capital to address these problems needs to increase substantially.

Our superannuation funds already outsource the majority of the capital they manage to third parties, requiring them to deliver an investment return on that capital. We propose this continues but with a caveat that a minimum of 5% of that capital be invested not only to deliver a financial return but to also deliver positive, social and/or environmental outcomes supporting a world worth retiring into. 

Request

We urge our government to legislate that superannuation funds allocate a minimum of 5% of their total assets to socially and environmentally focused impact investments in private markets. This action will not force Trustees of these funds to compromise their fiduciary duty of care, in particular, the duty to act in the best financial interest of their members. 

Justification

With Federal and State finances strained and the need for capital to address social and environmental issues continuing to grow, dedicating a minimum of 5% by 2025 would make approximately $175 billion available for investment, without impacting government balance sheets or members' financial outcomes. Upholding the 'best financial interest' tenet ensures no compromise in returns for members.

Trustees of a registrable superannuation entity, or trustee of an SMSF, will not compromise in their duty, as detailed in the SIS Act (Superannuation Industry Supervision Act 1993) to exercise their powers in the best financial interests of the beneficiaries, namely us. (6)

Supporting Evidence

The 2020 Australian Social Impact Investing Taskforce Report (7) revealed the potential to grow the social impact investment (SII) market tenfold, mobilizing significant capital for social good with government support. This is one example of where a successful #5by25 campaign could provide access to the capital required.

Conclusion

Allocating a minimum of 5% of superannuation funds' assets to impact investments by 2025 will not hinder their operations or members' returns. Instead, it will drive positive outcomes for people and the planet, addressing pressing social and environmental challenges both at home and abroad.

The Game Plan

We are extending the #5by25 petition on Change.org until just ahead of our next Impact Investing Conference in September 2025. This gives us additional time to build momentum and rally even greater support for our cause.

After this period, we will register an official e-petition (8) with the Australian Government House of Representatives. Once certified by the Committee, the e-petition will open for a 4-week window, during which we will need your help to gather as many signatures as possible on the official platform.

We’ll ensure everyone who has supported us on Change.org is made fully aware when the e-petition window opens. This timing is critical to achieving maximum impact with our petition and increasing the likelihood of eliciting a formal response from the House of Representatives.

By using Change.org as a platform to demonstrate the strength of public support, we aim to carry that momentum into the government petition process, driving meaningful action for people and the planet. Together, let’s invest more for the benefit of all—not just a few—and create a sustainable future for generations to come.

• PLEASE SIGN THE PETITION NOW AND HELP US BE HEARD:

Follow the change this money can drive;

Project 1 - Check out LinkedIn post - Social Impact​

Project 2 - Check out LinkedIn post - Environmental Impact 

Project 3 - Check out LinkedIn post - Growing Human Capital

Project 4 - Check out LinkedIn post - Affordable & Social Housing

Project 5 - Check out LinkedIn post - Renewable Energy

Project 6 - Check out LinkedIn post - Healthcare

Please share the positive impact!

 

Footnotes: 

(1) Impact investing is an exciting and rapidly growing industry powered by investors who are determined to generate social and environmental impact as well as financial returns. This is taking place all over the world, and across all asset classes. Learn about the latest market developments. https://thegiin.org/impact-investing/ [GIIN's latest research here.]

(2) Annual superannuation performance test. APRA is required to conduct an annual performance test for superannuation products. The assessment under the performance test is intended to hold RSE licensees to account for underperformance through greater transparency and increased consequences. https://www.apra.gov.au/annual-superannuation-performance-test

(3) Impact Investing Taskforce Expert Panel Update and Review of Final Report https://treasury.gov.au/sites/default/files/2023-12/p2023-391009-taskforce-updated-report-2022.pdf

(4) The 2030 Agenda for Sustainable Development, adopted by all United Nations Member States in 2015, provides a shared blueprint for peace and prosperity for people and the planet, now and into the future. At its heart are the 17 Sustainable Development Goals (SDGs), which are an urgent call for action by all countries - developed and developing - in a global partnership. They recognize that ending poverty and other deprivations must go hand-in-hand with strategies that improve health and education, reduce inequality, and spur economic growth – all while tackling climate change and working to preserve our oceans and forests. https://sdgs.un.org/goals

(5) 10 July 2023: The Sustainable Development Goals Report 2023: Special Edition provides a powerful call to action, presenting a candid assessment of the SDGs based on the latest data and estimates. While highlighting the existing gaps and urging the world to redouble its efforts, the report also emphasizes the immense potential for success through strong political will and the utilization of available technologies, resources, and knowledge. Together, the global community can reignite progress towards achieving the SDGs and create a brighter future for all. https://unstats.un.org/sdgs/report/2023/

(6) SIS Act (Superannuation Industry Supervision Act 1993 https://www.legislation.gov.au/C2004A04633/2020-06-23/text 

(7) The 2020 Australian Social Impact Investing Taskforce Report https://treasury.gov.au/sites/default/files/2023-12/p2023-391009-taskforce-final-report-2020.pdf 

(8) Australian government e-petitions. e-petitions are open for collecting signatures for four weeks after they have been certified by the Committee. https://www.aph.gov.au/Parliamentary_Business/Petitions/House_of_Representatives_Petitions/Learn