Brutal reason Aussies are switching super funds

World Animal Protection evaluated 200 of Australia’s top superannuation funds and found only 16 currently have animal welfare policies.

In a survey, it found that animal cruelty topped the list on where investors don’t want their money spent, followed closely by human rights abuses.

Yet most Australians don’t know which industries their super is being invested in, even though the majority said they would switch funds if they knew their super was funding cruel industries such as factory farming, live animal export or cosmetic animal testing.

Gen Z and Millennials were the generations most out of touch with their super, with almost half clueless on where their money was being invested.

Of those surveyed, 45 per cent would feel angry if they found out their super fund was investing in industries that took part in animal cruelty and a quarter would feel deceived.

For Gen Z in particular, 72 per cent said they would switch if their super fund was investing in animal cruelty.

Jay Clayton is one young Aussie who did some digging and didn’t like what he found.

He said he had been signed up to his super fund automatically when he started his first job at McDonalds and hadn’t paid much attention to it in the past six years.

But then the 23-year-old wanted to find out more to make sure the investments aligned with his personal values.

“All the information they provided about where the investments were going seemed very broad and generic and that’s the same for all the popular mainstream super funds,” he told news.com.au.

“But then once I looked at the ethical options they laid out pretty clearly where the investments were going and how they are cruelty-free.”

The website designer said factory farming in particular doesn’t sit well with him and he is stoked he made the switch to a new fund just three weeks ago.

The Brisbane man wonders why people aren’t more engaged on the issue, but thinks the younger generation will push for changes in this area considering how much they care about the environment and treatment of animals.

“A lot of younger people between the 20 to 30 years age bracket say they care a lot about these issues and thought they were investing in super that is aligned with these values, but not many people take action to research it,” he said.

“I think it will definitely grow and become more mainstream to go with ethical super funds.”

Ben Pearson, interim country director at World Animal Protection, said the reality for most Australians is their super could be funding some of the cruellest industries like intensive factory farming, live animal export and cosmetic testing on animals, without their knowledge.

“Billions of animals suffer every year as a result of the very industries the typical person’s super could be investing in,” he said.

“We know most people don’t want their super funding animal cruelty, and it’s time for the industry to align their policies with the expectations of the Australian public,” he said.

“We’re calling on Australians to hold their super funds accountable and start by asking their super funds about their animal welfare policy. If they don’t have one, ask them why.”

The Australian super industry manages over $3 trillion worth of assets and is increasingly looking to invest in agricultural industries, so it’s critical to shine a light on the investment practices of super funds, Mr Pearson said.

“Where our super is invested ultimately shapes the future for not only animals, but people and the future of our planet,” he said.

Research from the Responsible Investment Association Australasia has found that funds which take an ethical and responsible approach have performed better than their peers over one, three, five and 10 years.

Originally published as What information you should be demanding from your super fund